Magazine article American Banker

Netbank Chief Says Branches A Possibility

Magazine article American Banker

Netbank Chief Says Branches A Possibility

Article excerpt

Netbank, which may be the only Internet bank that has turned a profit, now says it may need a branch structure, and will consider finding a partner that has one. Though it has had success as a branchless operation, the four-year-old bank says it faces rising costs and new pressures from competitors. It costs Netbank $150 to acquire a customer -- up from $61 three years ago -- and marketing expenses were $2.8 million in the first quarter, against $387,000 a year earlier. Other Internet banks have wistfully conceded the need for physical outlets -- whether they be branches or automated teller machines -- for customers' convenience and reasurrance. Netbank's only bricks-and-mortar location is its headquarters, in Alpharetta, Ga., and its leader, D. R. Grimes, has until now been adamant about sticking to the virtual bank strategy. Last Thursday Mr. Grimes delivered a slightly different message. In an interview, he said he has no plans right at the moment to open branches but that he could envision teaming up with a foreign bank well established in the United States. Such a move could make Netbank "a stronger global force," said Mr. Grimes, its chairman and chief executive officer. Mr. Grimes spoke with American Banker after he delivered a speech in Chicago at the Bank Administration Institute's Executive Symposium on eBanking. He said that Netbank had eight consecutive quarters of profitability behind it, and thus had little reason to consider new business models. …

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.