Chase Offers Home Computer Service Combining Banking and Brokerage: Spectrum Makes Use of Bank's Rose and Co. Affiliate for Securities Trading
Tyson, David O., American Banker
NEW YORK -- Chase Manhattan Bank on Tuesday launched a full home banking service that includes securities trading through Rose & Co., the bank's brokerage affiliate.
Chase thus becomes the first bank to enable customers to conduct their banking and brokerage business over the same on-line system.
The bank initially is marketing Spectrum, as the service is called, only in the New York area. But customers can access it through a toll-free 800 number from anywhere in the country at any time of night or day.
"We will be offering a service that's less bank-directed and more broker-directed outside New York early next year," Stephen T. Iovino, Chase vice president in charge of electronic banking, said in an interview.
Spectrum costs a minimum $5 a month and a maximum $10, depending on options selected. For the time being, it runs only on Apple II+, IIe or IIc, IBM PC or XT, and Commodore 64 personal computers. But Chase expects to add others computers, starting with compatible brands.
"We expect to add the IBM Jr shortly," Mr. Iovino said. "The Compaq works already: It's just in a final checkout. We are working on the Macintosh."
The basic $5 banking service includes on-line statements, account transfers, and bill paying. In an unusual feature, Chase allows the pre-authorized payees to include individuals as well as businesses.
Customers can tag transactions for budget and tax purposes. They can communicate by electronic mail with the bank and other Spectrum customers. They can call up current rates on all Chase accounts and loans. Loan applications can also be requested.
Chase furnishes a disk that uses encryption to encode and decode messages between bank and customer. In addition, it is necessary to enter a password, plus a personal code that is different for each user in a family.
At sign-on, the customer gets a main menu listing Banking, Investing, Financial Planning, Communications Center, Spectrum Assistance, and Guide to Services. If Investing is selected, there is a sub-menu: Trading, Portfolio Management, Quotes, Symbol Directory, and Market Letter Digest, on-line abstracts of more than 130 stock market newsletters.
If Trading is picked, the customer fills in an order ticket on line. …