Magazine article American Banker

First Citizens of North Carolina Establishes Brokerage Unit

Magazine article American Banker

First Citizens of North Carolina Establishes Brokerage Unit

Article excerpt

First Citizens Bank, North Carolina's fifth-largest bank, entered the investment products arena this month by forming a broker-dealer subsidiary.

The new unit, First Citizens Investors Services, is offering 35 mutual funds from a wide array of companies, including Putnam Financial Services, Alliance Capital Management, American Capital Asset Management, Massachusetts Financial Services, and Federated Investors.

The $6.1 billion-asset bank is also offering customers unit investment trusts, tax-deferred annuities, municipal bonds, U.S. government securities, and qualified retirement plans.

First Citizens, based in Raleigh, operates in the shadows of two of the banking industry's most ambitious mutual fund players: NationsBank Corp. and First Union Corp. Both have started marketing a wide array of brokerage services through their branches.

An Emphasis on Service

But while First Citizens clearly faces some formidable competition, bank executives insist that the institution is not at a disadvantage.

"There's no doubt we face a distinct challenge," said Noel McLaughlin, a senior vice president at the bank. "We plan to succeed by gearing up to be service oriented instead of transaction oriented."

Like many other banks, First Citizens says it is getting into the investments business because of customer demand. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.