An article in Online Media Daily reports on a research study which found that people who bank online spent more than double the average online shopper’s expenditures during the previous six months. The article concludes that
…an uptick in online banking rates might thus help revive e-commerce”
(Note: It’s not clear if the authors of the study came to that conclusion, or just the author of the article).
My take: A ridiculous conclusion.
Consumers over 30 (if not 40) start off online by surfing the Web, then buying something, and then accessing bank accounts. Younger consumers — for whom online behavior is innate, not acquired — conduct their lives online, and already have sky-high eCommerce and online banking adoption rates.
But even if online banking adoption did lead to eCommerce activity, did it not occur to the study authors that online banking customers might be more affluent than other consumers, and that that might be the reason why they spend more online?
The article goes on to imply that banks’ lack of home page personalization is an obstacle to online banking adoption. According to another study from another researcher, banks were “behind the curve” in home page personalization, product and service promotions, and online recruitment.
That might be true — but that has nothing to do with online banking adoption. Inertia (in other words, 30 to 40 years of banking offline) and security fears are today’s predominant hurdles that keep non-online bankers from becoming online bankers. How in the world could personalizing the bank’s public site home page drive online banking adoption?
Unfortunately, the article buries the most important study among the ones it cites. That being a study conducted by IBM and Kana Software that found that financial institutions — not just banks, but insurers and investment firms — are failing to provide adequate online self-service. According to this study, 95% of financial Web sites fail to answer questions about topics like check cancellation fees, making insurance claims, and buying and selling stocks.
Personally, I find the 95% number suspiciously high. But if it’s 95% or 50%, the underlying implication is the critical point: That online banking (and other financial services) adoption is suffering because service functionality is lacking.
And that’s the best reason for a banking exec to be concerned about online banking adoption rates. Not because it might drive more eCommerce spending, but because it might drive high-cost service transactions to lower cost channels like the Web.
And because it improves the perceptions in the minds of customers that the bank is providing a high-quality, convenient customer experience. Which clearly is not common in today’s financial services world — despite the claims that financial firms make.
What is Online Banking?
OnlineOnline bankingbankingbanking is the practice of making bank transactions or paying bills via the Internet. Thanks to technology, and the Internet in particular, we no longer have to leave the house. We can shop onlineonlineonline, communicate onlineonlineonline, and now, we can even do our bankingbankingbanking onlineonlineonline. OnlineOnlineOnline bankingbankingbanking allows us to make deposits, withdrawals and pay bills all with the click of a mouse. It doesn't get much more convenient than that.
The benefits are many.
For the onlineonlineonline bankingbankingbanking customer, the convenience factor rates high. No longer does a person have to wait for the bank statement to arrive in the mail to check account balances. One can check the balance every day just by logging onto one's account. In addition to checking balances and transactions, one can catch discrepancies in the account right away and deal with them swiftly. The best part is that this can be done anywhere! As long as one has Internet access, one can practice onlineonlineonline bankingbankingbanking.
Since bills are paid onlineonlineonline, the necessity of writing checks, affixing postage and posting the payment in the mail is eliminated. Once the amount is entered and the payee is checked off, the funds are automatically deducted from the payer's choice of account.
Since the cost to the bank is minimal, the cost to the consumer, in many cases, is also minimal. While there is usually a fee for onlineonlineonline bankingbankingbanking, it can be extremely low. Those who partake in onlineonlineonline bankingbankingbanking all agree it's worth every penny. Not having to spend all Saturday morning standing in a crowded bank line is justification for most. It can even pay for itself since costs like postage and ATM fees are reduced.
OnlineOnlineOnline bankingbankingbanking also eliminates paper waste, which is a plus not only for those who have to handle all the paper work, but also for the environment.
Of course, there are also cons.
Security is always an issue with Internet transactions. Although information is encrypted, and the chances of your account being hacked are slim, it happens. Banks pay big bucks to install high tech firewalls. Chances are your money is in good hands.
You're also missing the personal service. No smiling teller or representative hands you a receipt. Instead, except for what's printed into your account, all the paperwork is up to you. Always print copies of important transactions.
If you have to deposit cash or checks, you'll still have to spend time at the ATM. Unless a payment to you is directly deposited, this is one thing you'll always have to handle manually.
Still, the benefits far outweigh the risks. The convenience of onlineonlineonline bankingbankingbanking is a perk well worth the cost. What would you rather do, stand in a long line on a weekend morning or handle your transactions in the comfort of your own home?
The benefits are many.
For the onlineonlineonline bankingbankingbanking customer, the convenience factor rates high. No longer does a person have to wait for the bank statement to arrive in the mail to check account balances. One can check the balance every day just by logging onto one's account. In addition to checking balances and transactions, one can catch discrepancies in the account right away and deal with them swiftly. The best part is that this can be done anywhere! As long as one has Internet access, one can practice onlineonlineonline bankingbankingbanking.
Since bills are paid onlineonlineonline, the necessity of writing checks, affixing postage and posting the payment in the mail is eliminated. Once the amount is entered and the payee is checked off, the funds are automatically deducted from the payer's choice of account.
Since the cost to the bank is minimal, the cost to the consumer, in many cases, is also minimal. While there is usually a fee for onlineonlineonline bankingbankingbanking, it can be extremely low. Those who partake in onlineonlineonline bankingbankingbanking all agree it's worth every penny. Not having to spend all Saturday morning standing in a crowded bank line is justification for most. It can even pay for itself since costs like postage and ATM fees are reduced.
OnlineOnlineOnline bankingbankingbanking also eliminates paper waste, which is a plus not only for those who have to handle all the paper work, but also for the environment.
Of course, there are also cons.
Security is always an issue with Internet transactions. Although information is encrypted, and the chances of your account being hacked are slim, it happens. Banks pay big bucks to install high tech firewalls. Chances are your money is in good hands.
You're also missing the personal service. No smiling teller or representative hands you a receipt. Instead, except for what's printed into your account, all the paperwork is up to you. Always print copies of important transactions.
If you have to deposit cash or checks, you'll still have to spend time at the ATM. Unless a payment to you is directly deposited, this is one thing you'll always have to handle manually.
Still, the benefits far outweigh the risks. The convenience of onlineonlineonline bankingbankingbanking is a perk well worth the cost. What would you rather do, stand in a long line on a weekend morning or handle your transactions in the comfort of your own home?
A Bank, at Your Service
Business owners have always had a love-hate relationship with their bankers--and these relationships have only become more strained as local banks have been gobbled up by large corporations in recent years. Sure, Citigroup and Bank of America offer their clients ubiquitous branches and online banking and even prestige--and there's nothing wrong with that. But try getting a line of credit extended quickly, let alone getting one of the bank's higher-ups on the phone. It rarely happens. And yet there's hope. As the total number of banks shrinks rapidly, a new breed of entrepreneur-friendly bank is emerging to fill the void.
The boomlet of start-up activity comes after 20 long years of consolidation in the banking world. At the end of 2004, there were 7,630 banks in the United States, according to the Federal Deposit Insurance Corp. That's roughly half as many as there were at the end of 1984, the year the population of banks peaked.
But as the overall number of banks has dwindled, start-up activity has begun to tick upward. In 2004, 127 start-up, or "de novo," banks were established. Another 147 banks received charters in the first 10 months of this year--up from the 94 start-ups in the same period two years ago. The typical de novo raises approximately $15 million in assets at the time of its launch.
Consolidation is fueling this trend, creating gaps in the market and displacing experienced bank executives who are in a position to raise money and to obtain a charter. Local business owners are also often involved in bank start-ups, as investors or as proponents--nurturing the trend perhaps because they sense the need for a bank renaissance the most.
"Welcome, Lon Getlin!"
Thurston First Bank is a prototypical de novo. Last year, Michael Edwards, who has worked in banking since 1963, raised $11.4 million from 375 investors--a mix of professionals and civic-minded business owners--to launch the Olympia, Wash., bank.
Like all de novo banks with limited assets, Thurston First serves a small number of clients--just 125 at this point. Unlike most, it caters exclusively to a business clientele and avoids all forms of consumer banking, operating without an advertising campaign or even a public branch. Companies that bank with Thurston First are typically too big for a standard community bank, says Edwards, but are too small to be well cared for by one of the major national institutions. Among Thurston First's specialties: land, commercial real estate, equipment financing, and asset acquisition loans. It offers personal banking services to its customers only after it has established a track record with them as business clients.
Thurston First further differentiates itself by offering great perks, including a mobile branch that will pick up deposits at a customer's office. The bank also deploys remote deposit technology. A customer can have deposit checks read by a special scanner on his desk. Funds are disbursed to the correct account without the customer or even the paper check leaving his office.
Such up-to-date technology is one of the hallmarks of the newest crop of de novos. In the past, only bigger banks could afford to offer online banking and the like, but now so many systems can be outsourced that newer, smaller banks can match or even beat the systems offered by their regional or national rivals.
Beyond systems or services, however, a personal relationship with the head of the bank is the key to the de novo's sales pitch. Thurston First's Edwards, for example, encourages customers to call him on his cell phone.
This is not uncommon in the de novo world. Lon Getlin, who runs a pharmaceutical supply business in West Linn, Oreg., used to split his business between Bank of America and Wells Fargo. He switched to the Bank of Oswego in Lake Oswego, Oreg., after he met Dan Heine, co-founder and CEO of the bank. Heine promised Getlin favorable terms on a line of credit, but he also agreed to review his business plan and provide details on financing options above and beyond what the typical bank would offer. And when Getlin comes to the bank to meet with Heine, he is greeted at the door by a sign that welcomes him by name. "I was totally impressed by a whole bunch of things that they said they would do and in fact did," says Getlin.
"Getting the Band Back Together"
Certainly part of the reason for the boomlet in de novo banks is that the market for raising capital is as favorable as it has been for some time, says Edward Carpenter, chairman of Carpenter & Co., an Irvine, Calif., investment bank that advises banks on financing and acquisitions.
With banks reporting strong profits, Carpenter says, investors are eagerly pouring capital into the industry. Net income for all banks in 2004 was $104.7 billion--up 43% from three years earlier, according to FDIC data--with small banks outperforming the industry average. Shares of banks with assets of less than $500 million have increased by 181% over three years, Carpenter says. Such growth fuels heady prices when small bank shares are traded and when banks are sold. Banks involved in mergers are selling for nearly 25 times earnings.
Business owners may worry that one drawback of signing up with a de novo bank is that it's built to flip. And in some cities, there are already well-known serial bank entrepreneurs. Of course, any business you work with can be sold at any time. But according to the FDIC, only 5% of de novo banks are acquired in their first five years of business.
Meanwhile, more de novos are chartered every week. Consider the extraordinary case of Square 1 Bank, based in Durham, N.C., which was formally established last August. Initially, a group led by CEO Richard Casey set out to raise $105 million, the amount specified in its charter and an unusually large sum for a de novo bank. In fact, the offering was oversubscribed at $200 million.
Like other de novos, Square 1 was set on course by a merger. Casey had been an executive at Imperial Bank, where he initiated a program for lending to venture capital-backed companies. Imperial was then taken over by Detroit-based Comerica Bank. Casey left after a year, waiting out his noncompete clause, and then joined with former colleagues to launch Square 1. "It was a case of getting the old band back together," he says.
Today, Square 1 focuses on what it perceives as an underserved niche: companies that are backed by venture capital. The fledgling bank set up offices in technology parks in cities such as Austin, Seattle, North Carolina's Research Triangle, and Palo Alto, Calif. The plan is to provide a full range of banking services to this narrow band of clients. Casey and his team have knowledge of and ties to that community that run deep, he says.
Like other start-up bankers, he brings decades of experience to a bank that is brand new.
Looking for Account Ability
As with any start-up you work with, a de novo bank requires careful vetting
How do I find a de novo bank near me?
One way is to search the FDIC's Institution Directory. You can search for banks by state or Zip code and date of charter. You can also call state banking authorities or the federal Comptroller of the Currency, whose office formally issues bank charters.
How can I do due diligence on a de novo?
All banks must be insured by the FDIC to get a charter. By using the "bank find" feature on the FDIC's website, you can verify the insurance status of a bank. You can also call the FDIC hot line at 877-ASK-FDIC (877-275-3342).
How can I make sure the bank is right for me?
A lot of this will boil down to personal chemistry. You should also find out what the bank's assets are and how many customers it has. The typical de novo bank with $15 million in assets will have a loan maximum stated in its charter. If the cap is, say, $2 million, and you need that much or more, look elsewhere.
The boomlet of start-up activity comes after 20 long years of consolidation in the banking world. At the end of 2004, there were 7,630 banks in the United States, according to the Federal Deposit Insurance Corp. That's roughly half as many as there were at the end of 1984, the year the population of banks peaked.
But as the overall number of banks has dwindled, start-up activity has begun to tick upward. In 2004, 127 start-up, or "de novo," banks were established. Another 147 banks received charters in the first 10 months of this year--up from the 94 start-ups in the same period two years ago. The typical de novo raises approximately $15 million in assets at the time of its launch.
Consolidation is fueling this trend, creating gaps in the market and displacing experienced bank executives who are in a position to raise money and to obtain a charter. Local business owners are also often involved in bank start-ups, as investors or as proponents--nurturing the trend perhaps because they sense the need for a bank renaissance the most.
"Welcome, Lon Getlin!"
Thurston First Bank is a prototypical de novo. Last year, Michael Edwards, who has worked in banking since 1963, raised $11.4 million from 375 investors--a mix of professionals and civic-minded business owners--to launch the Olympia, Wash., bank.
Like all de novo banks with limited assets, Thurston First serves a small number of clients--just 125 at this point. Unlike most, it caters exclusively to a business clientele and avoids all forms of consumer banking, operating without an advertising campaign or even a public branch. Companies that bank with Thurston First are typically too big for a standard community bank, says Edwards, but are too small to be well cared for by one of the major national institutions. Among Thurston First's specialties: land, commercial real estate, equipment financing, and asset acquisition loans. It offers personal banking services to its customers only after it has established a track record with them as business clients.
Thurston First further differentiates itself by offering great perks, including a mobile branch that will pick up deposits at a customer's office. The bank also deploys remote deposit technology. A customer can have deposit checks read by a special scanner on his desk. Funds are disbursed to the correct account without the customer or even the paper check leaving his office.
Such up-to-date technology is one of the hallmarks of the newest crop of de novos. In the past, only bigger banks could afford to offer online banking and the like, but now so many systems can be outsourced that newer, smaller banks can match or even beat the systems offered by their regional or national rivals.
Beyond systems or services, however, a personal relationship with the head of the bank is the key to the de novo's sales pitch. Thurston First's Edwards, for example, encourages customers to call him on his cell phone.
This is not uncommon in the de novo world. Lon Getlin, who runs a pharmaceutical supply business in West Linn, Oreg., used to split his business between Bank of America and Wells Fargo. He switched to the Bank of Oswego in Lake Oswego, Oreg., after he met Dan Heine, co-founder and CEO of the bank. Heine promised Getlin favorable terms on a line of credit, but he also agreed to review his business plan and provide details on financing options above and beyond what the typical bank would offer. And when Getlin comes to the bank to meet with Heine, he is greeted at the door by a sign that welcomes him by name. "I was totally impressed by a whole bunch of things that they said they would do and in fact did," says Getlin.
"Getting the Band Back Together"
Certainly part of the reason for the boomlet in de novo banks is that the market for raising capital is as favorable as it has been for some time, says Edward Carpenter, chairman of Carpenter & Co., an Irvine, Calif., investment bank that advises banks on financing and acquisitions.
With banks reporting strong profits, Carpenter says, investors are eagerly pouring capital into the industry. Net income for all banks in 2004 was $104.7 billion--up 43% from three years earlier, according to FDIC data--with small banks outperforming the industry average. Shares of banks with assets of less than $500 million have increased by 181% over three years, Carpenter says. Such growth fuels heady prices when small bank shares are traded and when banks are sold. Banks involved in mergers are selling for nearly 25 times earnings.
Business owners may worry that one drawback of signing up with a de novo bank is that it's built to flip. And in some cities, there are already well-known serial bank entrepreneurs. Of course, any business you work with can be sold at any time. But according to the FDIC, only 5% of de novo banks are acquired in their first five years of business.
Meanwhile, more de novos are chartered every week. Consider the extraordinary case of Square 1 Bank, based in Durham, N.C., which was formally established last August. Initially, a group led by CEO Richard Casey set out to raise $105 million, the amount specified in its charter and an unusually large sum for a de novo bank. In fact, the offering was oversubscribed at $200 million.
Like other de novos, Square 1 was set on course by a merger. Casey had been an executive at Imperial Bank, where he initiated a program for lending to venture capital-backed companies. Imperial was then taken over by Detroit-based Comerica Bank. Casey left after a year, waiting out his noncompete clause, and then joined with former colleagues to launch Square 1. "It was a case of getting the old band back together," he says.
Today, Square 1 focuses on what it perceives as an underserved niche: companies that are backed by venture capital. The fledgling bank set up offices in technology parks in cities such as Austin, Seattle, North Carolina's Research Triangle, and Palo Alto, Calif. The plan is to provide a full range of banking services to this narrow band of clients. Casey and his team have knowledge of and ties to that community that run deep, he says.
Like other start-up bankers, he brings decades of experience to a bank that is brand new.
Looking for Account Ability
As with any start-up you work with, a de novo bank requires careful vetting
How do I find a de novo bank near me?
One way is to search the FDIC's Institution Directory. You can search for banks by state or Zip code and date of charter. You can also call state banking authorities or the federal Comptroller of the Currency, whose office formally issues bank charters.
How can I do due diligence on a de novo?
All banks must be insured by the FDIC to get a charter. By using the "bank find" feature on the FDIC's website, you can verify the insurance status of a bank. You can also call the FDIC hot line at 877-ASK-FDIC (877-275-3342).
How can I make sure the bank is right for me?
A lot of this will boil down to personal chemistry. You should also find out what the bank's assets are and how many customers it has. The typical de novo bank with $15 million in assets will have a loan maximum stated in its charter. If the cap is, say, $2 million, and you need that much or more, look elsewhere.
The Advantages ofOnline Banking
Going to a bank can take a lot of your time, considering the fact that banks have a fixed timetable and the most of the times you have to queue up because everybody seems to go there at the same time with you.
This is one of the reasons why more and more people get onto online banking. If you want to save more of your time as well as manage your finances in an easier way you should combine online banking with Microsoft Money 2004.
Here we would like to present you the advantages of using Money 2004 and online banking. And they are not just a few, if we take into consideration the fact that the number of people who use online banking has exponentially raised from 0.4 million to 17.2 million, according to Mintel survey.
And this happened because with online banking:
A lot of your time will be saved because you don't have to visit a bank and wait in a long queue;
Online banking is more accessible because it gives you the opportunity to check your bank account at a time and a place that is favorable to you;
No matter the place where you are, as long if you have Internet access, you can take care of your finances through online banking service;
Online banking involves no difficulties in carrying out financial transactions, which are safe and secure;
Almost every financial institution offers you the possibility to see your latest transactions, transfer money to people or institutions, pay checks, apply for loans and arrange or change standing orders and direct debits.
At all these advantages of online banking, add the power of Money 2004, which provides you a range of instruments meant to help you control your finances. To simplify the process even more, you will receive a complete manual that guides you through the entire process of online banking step by step.
Money 2004 helps you in many ways to manage your capital online. Using online banking and Money 2004 you are able to get a financial SNAPSHOT of your bank and building society and savings. Also you can download online statements from your financial institution to your computer, find out which dealings have been carried out as soon as they were passed over successfully. Furthermore, online banking and Money 2004 allow you to double-check your entries automatically.
These are some of the reasons why you should get started with online banking. You can only win!
This is one of the reasons why more and more people get onto online banking. If you want to save more of your time as well as manage your finances in an easier way you should combine online banking with Microsoft Money 2004.
Here we would like to present you the advantages of using Money 2004 and online banking. And they are not just a few, if we take into consideration the fact that the number of people who use online banking has exponentially raised from 0.4 million to 17.2 million, according to Mintel survey.
And this happened because with online banking:
A lot of your time will be saved because you don't have to visit a bank and wait in a long queue;
Online banking is more accessible because it gives you the opportunity to check your bank account at a time and a place that is favorable to you;
No matter the place where you are, as long if you have Internet access, you can take care of your finances through online banking service;
Online banking involves no difficulties in carrying out financial transactions, which are safe and secure;
Almost every financial institution offers you the possibility to see your latest transactions, transfer money to people or institutions, pay checks, apply for loans and arrange or change standing orders and direct debits.
At all these advantages of online banking, add the power of Money 2004, which provides you a range of instruments meant to help you control your finances. To simplify the process even more, you will receive a complete manual that guides you through the entire process of online banking step by step.
Money 2004 helps you in many ways to manage your capital online. Using online banking and Money 2004 you are able to get a financial SNAPSHOT of your bank and building society and savings. Also you can download online statements from your financial institution to your computer, find out which dealings have been carried out as soon as they were passed over successfully. Furthermore, online banking and Money 2004 allow you to double-check your entries automatically.
These are some of the reasons why you should get started with online banking. You can only win!
The Online Banking System
These days, online and offline businesses have become tightly and neatly intertwined and dependent on one another, although each stands independent of the other. This has allowed several benefits to arise that can serve everyday living for people of every social and cultural strata. One of the main advantages is monetary exchange, which the primary action of any and every business in existence and those consumers who utilize them.
Several online banking systems allow for the transaction of currency to be made between any two parties, as long as both have an account at any one or several of these systems. Certainly, every single business, whether online based or offline based, has such an account. This is because a great inundation of business activity takes place over the Internet on a daily basis. Even offline business conduct such affairs online for the purpose of ease and convenience.
Checks sent through regular mail takes sometimes several days to reach their recipients and then several more days to clear banking security scans. Online banking transactions, on the other hand, can be performed instantaneously by simply sending the amount tendered straight from one account into another. This currency can then be used as buying power throughout the Internet.
Yes, such money can be transferred to offline banking or credit union acounts, which usually requires a 3-4 day clearance but most online banking accounts offer credit and debit cards so that account holders can extract money straight from their online accounts by way of a regular ATM machine. In either case, the time wait is minimized or non existent for online monetary withdrawal, safe and assured.
How do these accounts differ from the sites promoting offline banks and credit unions? Well, for one thing and this is the most important consideration. Those sites serving offline banks and credit unions do not allow account holders to take money out over public or home computers for security reasons but still inconvenient, especially in urgent or emergency situations, although such funds can be transferred into the online banking accounts, again with a 3-4 day waiting period.
Once the clearance time passes, such currency can then be used online or removed via an ATM machine, just like payment that originated online. This would seem to suggest that online banking systems have not only become more common and more popular but even preferable to the alternative.
There is no mystery why then, offline businesses employ the use of online banking systems since general business insists on easy, quickly moving exchanges. Because the average person can also freely engage in such wonderful practices, online banking has rendered walk in banking virtually obsolete. It would be no surprise if all future banking were eventually to be conducted solely over the computer.
Several online banking systems allow for the transaction of currency to be made between any two parties, as long as both have an account at any one or several of these systems. Certainly, every single business, whether online based or offline based, has such an account. This is because a great inundation of business activity takes place over the Internet on a daily basis. Even offline business conduct such affairs online for the purpose of ease and convenience.
Checks sent through regular mail takes sometimes several days to reach their recipients and then several more days to clear banking security scans. Online banking transactions, on the other hand, can be performed instantaneously by simply sending the amount tendered straight from one account into another. This currency can then be used as buying power throughout the Internet.
Yes, such money can be transferred to offline banking or credit union acounts, which usually requires a 3-4 day clearance but most online banking accounts offer credit and debit cards so that account holders can extract money straight from their online accounts by way of a regular ATM machine. In either case, the time wait is minimized or non existent for online monetary withdrawal, safe and assured.
How do these accounts differ from the sites promoting offline banks and credit unions? Well, for one thing and this is the most important consideration. Those sites serving offline banks and credit unions do not allow account holders to take money out over public or home computers for security reasons but still inconvenient, especially in urgent or emergency situations, although such funds can be transferred into the online banking accounts, again with a 3-4 day waiting period.
Once the clearance time passes, such currency can then be used online or removed via an ATM machine, just like payment that originated online. This would seem to suggest that online banking systems have not only become more common and more popular but even preferable to the alternative.
There is no mystery why then, offline businesses employ the use of online banking systems since general business insists on easy, quickly moving exchanges. Because the average person can also freely engage in such wonderful practices, online banking has rendered walk in banking virtually obsolete. It would be no surprise if all future banking were eventually to be conducted solely over the computer.
Online banking security boost: Credit union shifts to two-factor authentication
Addison Avenue Federal Credit Union, based in Palo Alto, Calif., is taking steps to strengthen its online banking security by implementing two-factor variable-password authentication, becoming one of the few in the industry to do so.
The credit union is encouraging customers to switch from simple password authentication to the far stronger two-factor authentication, which makes use of VeriSign’s handheld token to generate a one-time password. In addition, VeriSign offers applications for the Blackberry or iPhone that can be downloaded to these mobile devices and used to turn a smart phone into a variable-password generator.
While use of the VeriSign variable-password technology won’t be required, it will be encouraged, says Fisher. The credit union, which has 150,000 members, many of them associated with the high-tech industry, will launch the service for free in the roll-out phase but will likely charge for the service down the road. For those using the stronger two-factor authentication, an annual fee of $10 for the service is anticipated, plus $10 for a handheld token. The iPhone and Blackberry applications are available for free.
The credit union is encouraging customers to switch from simple password authentication to the far stronger two-factor authentication, which makes use of VeriSign’s handheld token to generate a one-time password. In addition, VeriSign offers applications for the Blackberry or iPhone that can be downloaded to these mobile devices and used to turn a smart phone into a variable-password generator.
While use of the VeriSign variable-password technology won’t be required, it will be encouraged, says Fisher. The credit union, which has 150,000 members, many of them associated with the high-tech industry, will launch the service for free in the roll-out phase but will likely charge for the service down the road. For those using the stronger two-factor authentication, an annual fee of $10 for the service is anticipated, plus $10 for a handheld token. The iPhone and Blackberry applications are available for free.
Online banking: where the money is?
SYNOPSIS: Online banking services, from everyday checking and savings account transactions to advanced services like mortgages and online trading, are increasingly becoming a hot prospect for Internet portal sites and even cellular operators. However, the enthusiasm has yet to catch on with banking customers, who have been slow to adopt such services.
THEN: The lackluster growth of online banking customers comes down to several factors, with the most obvious and understandable factors being the narrow market base (Internet penetration even in developed markets in Asia being under 35%) and security concerns. Banking customers also fee more comfortable with brick-and-mortar banks (including ATMs), and many aren't even sure if their bank even has online services. There are also regulatory obstacles--online banking is illegal in some markets, while others are just developing the legal framework to deal with online transactions.
NOW: Online banking is by most accounts a mainstream phenomenon in most wired markets. In Asia, growth in online banking in markets like Australia, Hong Kong, Korea. Malaysia, Singapore, Taiwan and Thailand has been rising steadily, according to IDC subsidiary Financial Insights. In many such markets, the online banking population now numbers in the millions--Korea for example boast 16 million--while markets like India and China should see online banking usage grow into the tens of millions in the next few years at a growth rate of 300%. Douglas Jaffe, senior research manager of financial services for Financial Insights Asia/Pacific, goes so far as to say that online banking has become a powerful enough force to shift the shape of the future retail banking landscape as banks increasingly find themselves in a position where the bulk of their costs are tied up in offline channels that serve a shrinking and less profitable customer base. Even so, challenges remain, with security still the chief worry, particularly these days with the rise of "phishing" schemes designed to scam online banking and retail customers out of personal information.
THEN: The lackluster growth of online banking customers comes down to several factors, with the most obvious and understandable factors being the narrow market base (Internet penetration even in developed markets in Asia being under 35%) and security concerns. Banking customers also fee more comfortable with brick-and-mortar banks (including ATMs), and many aren't even sure if their bank even has online services. There are also regulatory obstacles--online banking is illegal in some markets, while others are just developing the legal framework to deal with online transactions.
NOW: Online banking is by most accounts a mainstream phenomenon in most wired markets. In Asia, growth in online banking in markets like Australia, Hong Kong, Korea. Malaysia, Singapore, Taiwan and Thailand has been rising steadily, according to IDC subsidiary Financial Insights. In many such markets, the online banking population now numbers in the millions--Korea for example boast 16 million--while markets like India and China should see online banking usage grow into the tens of millions in the next few years at a growth rate of 300%. Douglas Jaffe, senior research manager of financial services for Financial Insights Asia/Pacific, goes so far as to say that online banking has become a powerful enough force to shift the shape of the future retail banking landscape as banks increasingly find themselves in a position where the bulk of their costs are tied up in offline channels that serve a shrinking and less profitable customer base. Even so, challenges remain, with security still the chief worry, particularly these days with the rise of "phishing" schemes designed to scam online banking and retail customers out of personal information.
ONLINE BANKING: List of Internet Banking Articles, Tips, and Advice for Freelancers
The eventual movement towards online banking was done in the last 10 years due to the need of customers to perform transactions in a safe and quick manner. Online banking or also Internet banking as it’s often referred to allow customers to conduct financial transactions on a secure website operated by the primary branch of a bank. Easy and quick transactions are very important traits to those professionals in the freelancing world.
The following list of links focuses on all of the aspects of online banking from a basic description to security issues:
PC World Online Banking Article
This PC World article explores the risks of online banking and necessary precautions to protect accounts and personal information.
Digital Trends Online Banking Article
This article offers reasons to use online banking as an alternative to the traditional way of banking from the author.
Wikipedia Online Banking Article
This Wikipedia article offers a good general description of online banking with a variety of related links at the bottom of the webpage.
Microsoft Online Banking Article
This 8 page article from Microsoft examines online banking for the small business owner.
Online Banking Report Subscription
This site offers a subscription of online banking updates with a basic subscription rate of $1195 for a single user (1 year) and higher from there.
Online Banking Lesson
This link offers an online lesson to follow that explains what online banking is and reviews the pros and cons of online banking versus traditional banking.
Two-Part Online Banking Article
This link examines the demographics in two parts on online banking in the United States.
Bank of America - Online Banking Articles
This link offers a wide variety of online banking articles developed by Bank of America.
Safe Online Banking Article
This article discusses the safe way to do online banking around the net.
Informedbanking.com Articles
Informed Banking includes online banking and finance topics, banking software and bank technology reviews, as well as accounting software reviews.
MSN Money - Online Banking Article
This MSN – Money article discusses the features to look for in online banking, and the top 10 online banking sites.
Online Banking Reviews
The Star Reviews site does the work, and enables the freelancer to easily compare the best online banks.
About.com on Online Banking
This About.com guide focuses on online banking, with a variety of other article links throughout the webpage.
Allbusiness.com - Online Banking Articles
This link offers a wide variety of related online banking articles throughout its main web page
The following list of links focuses on all of the aspects of online banking from a basic description to security issues:
PC World Online Banking Article
This PC World article explores the risks of online banking and necessary precautions to protect accounts and personal information.
Digital Trends Online Banking Article
This article offers reasons to use online banking as an alternative to the traditional way of banking from the author.
Wikipedia Online Banking Article
This Wikipedia article offers a good general description of online banking with a variety of related links at the bottom of the webpage.
Microsoft Online Banking Article
This 8 page article from Microsoft examines online banking for the small business owner.
Online Banking Report Subscription
This site offers a subscription of online banking updates with a basic subscription rate of $1195 for a single user (1 year) and higher from there.
Online Banking Lesson
This link offers an online lesson to follow that explains what online banking is and reviews the pros and cons of online banking versus traditional banking.
Two-Part Online Banking Article
This link examines the demographics in two parts on online banking in the United States.
Bank of America - Online Banking Articles
This link offers a wide variety of online banking articles developed by Bank of America.
Safe Online Banking Article
This article discusses the safe way to do online banking around the net.
Informedbanking.com Articles
Informed Banking includes online banking and finance topics, banking software and bank technology reviews, as well as accounting software reviews.
MSN Money - Online Banking Article
This MSN – Money article discusses the features to look for in online banking, and the top 10 online banking sites.
Online Banking Reviews
The Star Reviews site does the work, and enables the freelancer to easily compare the best online banks.
About.com on Online Banking
This About.com guide focuses on online banking, with a variety of other article links throughout the webpage.
Allbusiness.com - Online Banking Articles
This link offers a wide variety of related online banking articles throughout its main web page
Does Online Banking Put Your Money at Risk?
Legend has it (incorrectly, it seems) that infamous bank robber Willie Sutton, when asked why banks were his favorite target, responded, "Because that's where the money is."
The modern-day Willie Suttons of the world target bank Web sites for the same reason. With online transactions, money is represented in the form of electronic records of ownership, which means online bank robbers can steal more money, in less time, than by stealing literal currency--and they don't even need a getaway car. But that doesn't mean online banking necessarily has to be a riskier proposition.
"Internet banking is terribly secure," says Brad Adrian, an Internet banking analyst with Gartner. "Financial services providers...make their systems as secure as possible."
But, he says, "unscrupulous people using phishing, keystroke collection, or similar activities" to steal your passwords or account numbers are a growing problem.
Going Phishing
Phishing scams, in which attackers use spoof e-mails and Web sites to lure users into entering personal financial information (such as credit card numbers, bank account information, and passwords), have increased in the last several months. Yet even though public awareness of these scams has grown, people continue to fall victim to them in increasing numbers.
The click-through rate on phishing e-mails is 3 percent, estimates Avivah Litan, vice president and research director at Gartner. That compares with a response rate of about 0.5 percent for spam, he says. One possible reason for this: People take e-mail from their bank very seriously, he says. In part the solution is better customer education, he adds, but banks could also do more to prevent the scams from working in the first place.
Online criminals--including those who phish for a living--have become even more sophisticated, creating fraudulent Web sites and e-mail messages that are harder to detect. Professional phishing criminals even work current events into their attacks to make them seem more realistic: One recent scam, for example, posed as an e-mail soliciting campaign donations.
To combat the growing problem, credit card issuers and financial institutions are experimenting with new technologies to make cards harder to forge and easier for consumers to use.
But some of these attempts might be misguided. For example, some companies are experimenting with so-called contactless payments. An RFID chip embedded in a card would let a customer pay by simply waving the card toward the RFID reader. Still unanswered is the question of whether users would have to either leave their credit cards in the car or enclose them in Mylar (which blocks the radio signals these cards emit), to prevent card data from being stolen while they walked through stores. Next month, card companies and credit card issuing banks will weigh the trade-offs between the convenience of contactless payments and the risks to customers at the Smart Card Alliance Conference.
Protect Yourself
For users trying to assess the security of an online transaction--banking or otherwise--the Public Key Infrastructure group, an industry association that deals with card security, recommends users look at five aspects of the transaction: customer authentication, customer authorization and privacy, security of the purchase data, and nonrepudiation (meaning a customer cannot deny their actions after they click the "buy" button).
Authentication (are the parties to a transaction who they claim to be?) and authorization (does each party have the authority to perform the actions?) can pose major problems for individuals. How can customers be sure they have reached a legitimate bank Web site? And how can the bank make sure the person logging in to your account is really you?
One interesting concept that might partly solve this problem is called "shared secrets." You send a file to the bank, perhaps a photo of your kids. When you log in to the bank Web site, that picture is displayed. If you don't see the picture, you know you've reached the wrong site. The problem, of course, is that you have to type in your user ID and password before seeing the picture. While this verifies the bank's Web site to you, the bank must still make sure it's really you on the other end of the transaction.
To be effective this solution requires a second layer of security. Gartner's Adrian suggests that the customer be required to click on a predetermined area of the picture. Even better, the customer could be required to click on a sequence of areas in a specified order. For example, if you uploaded a photo of your dog, you would click on his nose and then his mouth. Some banks are also looking into using so-called two-factor authentication, where you have to enter two passwords to log on: Your own password, and a "throwaway" password on a scratch-off card the bank sends you in your monthly statement. After you've used the throwaway password, you (or a data thief) can never use it again.
If your online bank doesn't offer this type of security, there are still steps you can take to protect yourself.
Make sure your online banking password is at least six characters long and includes both letters and numbers. Avoid using the same password you use for other sites, and avoid obvious combinations such as your street address or the combination of your first initial and last name. If your institution allows it, create a hard-to-guess user name as well.
If you receive an e-mail allegedly from your bank, never click the link in the e-mail message. Instead, type the URL of your bank right into the browser's Address bar yourself, and forward the e-mail to a known, legitimate bank e-mail address. Chances are excellent that, if you ask the bank if it sent the e-mail you received, you'll find out it didn't.
If you believe you've reached your bank's Web site, check the security certificate before you type in any personal information. In Internet Explorer, select File, Properties and click the Certificate button. The name on the certificate should match your bank's name. Then select View, Privacy Report to see more details about the site's privacy policies.
Most banks insist that you use a browser with at least 128-bit encryption. Also, remember that most Trojan horse viruses are aimed at Internet Explorer. To be extra safe, try using an alternative browser, such as Mozilla, Mozilla Firefox, Opera, or Netscape.
If you have an "always on" Internet connection, never store your online banking information on the PC. Adrian, the Gartner analyst, stores his online passwords in an encrypted area of his PDA. He also suggests using many different passwords, and keeping track of them with the PDA. Of course, you then have to worry about battery life, but in the long run that's less important than an unexpected, precipitous drop in your checking account balance.
The bottom line: Online banking need be no more risky than its offline counterpart, as long as you take the time to protect yourself.
Former Banking sponsors of the Athens 2004 and Sydney 2000 Games have sent messages of congratulations to London 2012 and Lloyds TSB following this we
The sponsors underlined the benefits an association with the Games brought to their business.
Hector P Verykios, who managed Alpa Bank's sponsorship of Athens 2004, said: "We are very proud to have been a Grand National sponsor and the Official Bank of the Athens 2004 Games.
"This was a once-in-a-lifetime experience which has transformed our business like no other opportunity could and will remain unforgettable in the minds of all our employees, clients and shareholders.
"Rarely does a project involve so many staff members from all sectors of the Bank, last more than four years and culminate in just two wonderfully hectic weeks. It was great for our business, for our customers and for the country.
"We would like to wish Lloyds TSB and London 2012 all the best in the years leading to the successful completion of the London 2012 Games.
Noel Purcell from Sydney 2000 sponsor Westpac Bank said: "To be a Games sponsor in your home country brings benefits to customers, staff and shareholders.
"It's the biggest show on earth and a one-off opportunity to be involved in an event that brings joy to billions of people.
"It's the years leading up to the event that makes this sponsorship so unique.
"We were a proud sponsor of the Sydney Games. It was a huge motivator for staff and many of our customers had a wonderful experience.
"I'm sure it will be a great journey for Lloyds TSB and something that will form part of that bank's long history."
Hector P Verykios, who managed Alpa Bank's sponsorship of Athens 2004, said: "We are very proud to have been a Grand National sponsor and the Official Bank of the Athens 2004 Games.
"This was a once-in-a-lifetime experience which has transformed our business like no other opportunity could and will remain unforgettable in the minds of all our employees, clients and shareholders.
"Rarely does a project involve so many staff members from all sectors of the Bank, last more than four years and culminate in just two wonderfully hectic weeks. It was great for our business, for our customers and for the country.
"We would like to wish Lloyds TSB and London 2012 all the best in the years leading to the successful completion of the London 2012 Games.
Noel Purcell from Sydney 2000 sponsor Westpac Bank said: "To be a Games sponsor in your home country brings benefits to customers, staff and shareholders.
"It's the biggest show on earth and a one-off opportunity to be involved in an event that brings joy to billions of people.
"It's the years leading up to the event that makes this sponsorship so unique.
"We were a proud sponsor of the Sydney Games. It was a huge motivator for staff and many of our customers had a wonderful experience.
"I'm sure it will be a great journey for Lloyds TSB and something that will form part of that bank's long history."
Bank Products
Deposits vs. Investments
Any money you have in savings and checking accounts or in certificates of deposit (CDs) is known as a deposit. Your financial institution is committed to returning all of your deposits (plus interest) whenever you ask. You can even take money out of a CD before it matures, however, you will have to pay a penalty for early withdrawal.
Your institution is also required to carry government insurance on your deposits up to $100,000. The insurer is usually the Federal Deposit Insurance Corporation (FDIC). Contact your financial institution if you have specific questions about your insured deposits.
Financial institutions can also provide investment products like mutual funds and annuities to their customers. Your bank or credit union may sell you this type of product, but it is not obligated to pay you back for any losses you may have if the investment is not successful.
Insured Not Insured
Statement Savings Accounts Mutual Funds
Passbook Savings Accounts Annuities
Money Market Deposit Accounts (MMDAs)
Holiday Savings Accounts
Regular Checking Accounts
NOW Accounts
Certificates of Deposits (CDs)
Equally important, the U.S. government does not insure you against investment losses, even if you purchased the product at a bank or credit union.
Investing in a Mutual Fund
When you invest in a mutual fund, your money is put together with the money of other investors and is used to purchase a variety of securities such as stocks, bonds, and other financial instruments.
Mutual funds are run by investment professionals who decide which investments to buy or sell for the fund. Their decisions are guided by the fund's investment goals.
For example, some mutual funds are designed for people who want to have easy access to their money and invest only for a short time. These funds invest primarily in government securities or very short-term bank CDs, where the investment risks are moderate.
Other mutual funds appeal to people who are willing to take on more risk with the goal of a higher return. Such funds invest primarily in corporate or municipal bonds.
Most mutual funds, however, are more diverse, offering a mix of investments. A typical fund portfolio includes between 30 and 300 different stocks, bonds, and other instruments.
Under the law, any institution selling you shares in a mutual fund or annuity must inform you that:
Mutual funds and annuities are not insured by the Federal Deposit Insurance Corporation (FDIC) or guaranteed by the bank or credit union that sells them.
Mutual funds and annuities involve an investment risk, including the possibility of lost principal.
Federal regulations also require that:
Your bank or credit union must tell you if it serves the fund in an advisory capacity.
Banks that sell mutual funds or annuities must clearly distinguish between regular bank teller windows and mutual fund or annuity sales windows.
Employees who accept regular deposits are not allowed to offer investment advice.
Investing in an Annuity
When you buy an annuity, the bank or insurance company invests your money and agrees to pay you back according to the annuity's contract terms. The annuity can be part of a long-term savings plan for retirement. Like mutual funds, they are not insured by the U.S. government or by the bank where you buy them.
Some annuities help you set aside money on a tax-deferred basis. You don't pay taxes on the income earned by this money until you retire. Other annuities allow you to receive income immediately. However, the amount of income you will receive can go up or down with changes in financial markets and the income won't be tax deferred.
With annuities, the annuity contract spells out the terms of your agreement. It will tell you whether or not you can transfer your contract to another company. Also, surrender charges or penalties apply when funds are withdrawn before a designated period of time has passed. Surrender charges can apply from five to ten years or more. You may want to consider meeting with a qualified tax advisor or financial planner to learn more about annuities.
Buying through Your Institution
--------------------------------------------------------------------------------
Consumers should
be aware that
every product sold
by a bank or credit union
is not automatically insured
by the U.S. government.
--------------------------------------------------------------------------------
Not all banks and credit unions sell investment products, but many do. Some simply rent lobby space to outside companies. Other institutions sell what are called proprietary funds, which are sponsored by an outside company but receive investment advice from the institution itself. Private label funds, meanwhile, are sponsored and managed through an outside company but are only sold through one bank or credit union.
Some mutual funds and annuities have names that sound very much like names of financial institutions. But no mutual funds or annuities are insured by either your institution or the U.S. government. As an investor, you should be aware that these funds have different degrees of risk and could possibly lead to a loss of some or all of your principal.
Any money you have in savings and checking accounts or in certificates of deposit (CDs) is known as a deposit. Your financial institution is committed to returning all of your deposits (plus interest) whenever you ask. You can even take money out of a CD before it matures, however, you will have to pay a penalty for early withdrawal.
Your institution is also required to carry government insurance on your deposits up to $100,000. The insurer is usually the Federal Deposit Insurance Corporation (FDIC). Contact your financial institution if you have specific questions about your insured deposits.
Financial institutions can also provide investment products like mutual funds and annuities to their customers. Your bank or credit union may sell you this type of product, but it is not obligated to pay you back for any losses you may have if the investment is not successful.
Insured Not Insured
Statement Savings Accounts Mutual Funds
Passbook Savings Accounts Annuities
Money Market Deposit Accounts (MMDAs)
Holiday Savings Accounts
Regular Checking Accounts
NOW Accounts
Certificates of Deposits (CDs)
Equally important, the U.S. government does not insure you against investment losses, even if you purchased the product at a bank or credit union.
Investing in a Mutual Fund
When you invest in a mutual fund, your money is put together with the money of other investors and is used to purchase a variety of securities such as stocks, bonds, and other financial instruments.
Mutual funds are run by investment professionals who decide which investments to buy or sell for the fund. Their decisions are guided by the fund's investment goals.
For example, some mutual funds are designed for people who want to have easy access to their money and invest only for a short time. These funds invest primarily in government securities or very short-term bank CDs, where the investment risks are moderate.
Other mutual funds appeal to people who are willing to take on more risk with the goal of a higher return. Such funds invest primarily in corporate or municipal bonds.
Most mutual funds, however, are more diverse, offering a mix of investments. A typical fund portfolio includes between 30 and 300 different stocks, bonds, and other instruments.
Under the law, any institution selling you shares in a mutual fund or annuity must inform you that:
Mutual funds and annuities are not insured by the Federal Deposit Insurance Corporation (FDIC) or guaranteed by the bank or credit union that sells them.
Mutual funds and annuities involve an investment risk, including the possibility of lost principal.
Federal regulations also require that:
Your bank or credit union must tell you if it serves the fund in an advisory capacity.
Banks that sell mutual funds or annuities must clearly distinguish between regular bank teller windows and mutual fund or annuity sales windows.
Employees who accept regular deposits are not allowed to offer investment advice.
Investing in an Annuity
When you buy an annuity, the bank or insurance company invests your money and agrees to pay you back according to the annuity's contract terms. The annuity can be part of a long-term savings plan for retirement. Like mutual funds, they are not insured by the U.S. government or by the bank where you buy them.
Some annuities help you set aside money on a tax-deferred basis. You don't pay taxes on the income earned by this money until you retire. Other annuities allow you to receive income immediately. However, the amount of income you will receive can go up or down with changes in financial markets and the income won't be tax deferred.
With annuities, the annuity contract spells out the terms of your agreement. It will tell you whether or not you can transfer your contract to another company. Also, surrender charges or penalties apply when funds are withdrawn before a designated period of time has passed. Surrender charges can apply from five to ten years or more. You may want to consider meeting with a qualified tax advisor or financial planner to learn more about annuities.
Buying through Your Institution
--------------------------------------------------------------------------------
Consumers should
be aware that
every product sold
by a bank or credit union
is not automatically insured
by the U.S. government.
--------------------------------------------------------------------------------
Not all banks and credit unions sell investment products, but many do. Some simply rent lobby space to outside companies. Other institutions sell what are called proprietary funds, which are sponsored by an outside company but receive investment advice from the institution itself. Private label funds, meanwhile, are sponsored and managed through an outside company but are only sold through one bank or credit union.
Some mutual funds and annuities have names that sound very much like names of financial institutions. But no mutual funds or annuities are insured by either your institution or the U.S. government. As an investor, you should be aware that these funds have different degrees of risk and could possibly lead to a loss of some or all of your principal.
Mutual Federal Savings Bank (Muncie, IN)
Mutual Federal Savings Bank (MFSB) is a federally chartered savings bank that offers personal and business banking services. The bank provides deposit products including savings and checking accounts, certificates of deposits, and money market accounts. Its lending products include commercial lines of credit, term loans, credit cards, real estate loans, and home equity loans. Additionally, MFSB offers online banking and bill payment services. It was formerly known as Mutual Home and Savings Association. MFSB was founded in 1889 and is based in Muncie, Indiana with additional offices in Gas City, Albany, North Webster, Marion, Warsaw, Yorktown, and Winchester, Indiana. Mutual Federal Savings ...
Online bank fraud concerns consumers
It's the most unnerving story imaginable for a bank customer -- money disappearing from their account. A mysterious transaction, and no recourse. All the money, simply gone.
The case of Joe Lopez, detailed Tuesday by "NBC Nightly News with Brian Williams," is just one example. Lopez lost $90,000 when an unauthorized wire transfer moved the funds from his small business account to a bank account in Latvia. As a small business account holder, Lopez has fewer rights than consumers would if facing the same situation. But the story highlights increasing concern over the way financial institutions verify just who is moving money around their systems.
Online banking is increasingly popular in the United States. This year, about 55 million people will bank online, according to analyst firm Gartner. But the system is fraught with perils.
Chief among them are phishing e-mails that trick consumers into giving away their bank login information or other personal data. Nearly 2 million consumers said they'd fallen for the trick during one 12-month period, Gartner analyst Avivah Litan said earlier this year. It's not clear how many of them suffered an eventual attack on their online bank accounts, Litan said, but the stolen information is clearly valuable to would-be criminals.
While consumers who do suffer account losses are often refunded the money, there's still paperwork headaches to deal with, and not everyone does recover everything they've lost.
"In most cases, especially those involving credit card fraud, consumers get their money back pretty easily," she said. "But in other cases, like new account fraud or illegal transfers, it's not so simple and consumers often can lose out. They need to be aware of the holes in the system that are more apparent than ever with all the electronic doors into and out of their bank accounts."
Online Banking Security & Internet Fraud
Customers of several UK banks have recently been the target of online banking fraud that uses ‘spoof’ (also known as phishing or hoaxing) emails. Although difficult to recognise, they generally ask customers to click on a link to a counterfeit copy of their website and encourage them to provide, update or confirm sensitive personal information or passwords.
Please ensure that you always access the Abbey International website by typing the exact domain name (www.abbeyinternational.com). Never enter a banking site via another link and disclose your log in details.
To keep up to date with latest scams, and for further information, visit:
www.banksafeonline.org.uk
www.getsafeonline.org.uk
www.cifas.org.uk
Please remember, Abbey International will never send you an email asking you to enter your full personal, security or card details - not even to warn you about fraudulent emails asking for account validation ‘to prevent fraud’. In addition, we will never ask you to tell us your passwords by email, fax, or letter. However you contact us, we will never ask for your full password – only a part of it.
If you think you have revealed your security details in any way, or if you receive any suspicious looking emails, please contact us immediately.
'Pharming'
'Phishing' uses links that appear to be legitimate but actually take you somewhere else. 'Pharming' hijacks the domain name so that even if you are a 'phishing'-aware user who specifically types in the website you want (e.g.www.bbc.co.uk), you will still end up at a different website.
To help defeat 'pharming', you need to check the SSL (secure sockets layer), which provides you with a secure and private connection. When you log in to the Internet Banking Service, double-click the padlock symbol at the bottom of your browser to ensure the site certificate is valid and belongs to Abbey International. As long as the padlock symbol is there and is issued to Abbey International, you are not at any risk from online banking fraud.
Trojans
A trojan is a malicious file, usually disguised as something useful but, when activated, can cause loss, damage or even theft of data.
The critical difference between a trojan and a virus is that a trojan cannot replicate itself. The only way that it can spread is if you help it, typically by opening an email attachment, or downloading from the internet.
Once you open this file, the trojan goes to work destroying your computer's functionality – possibly recording your logging in details. A good line of defence is not to accept files from someone you don't know, and if you have any doubts, then do not open the file.
Please ensure that you always access the Abbey International website by typing the exact domain name (www.abbeyinternational.com). Never enter a banking site via another link and disclose your log in details.
To keep up to date with latest scams, and for further information, visit:
www.banksafeonline.org.uk
www.getsafeonline.org.uk
www.cifas.org.uk
Please remember, Abbey International will never send you an email asking you to enter your full personal, security or card details - not even to warn you about fraudulent emails asking for account validation ‘to prevent fraud’. In addition, we will never ask you to tell us your passwords by email, fax, or letter. However you contact us, we will never ask for your full password – only a part of it.
If you think you have revealed your security details in any way, or if you receive any suspicious looking emails, please contact us immediately.
'Pharming'
'Phishing' uses links that appear to be legitimate but actually take you somewhere else. 'Pharming' hijacks the domain name so that even if you are a 'phishing'-aware user who specifically types in the website you want (e.g.www.bbc.co.uk), you will still end up at a different website.
To help defeat 'pharming', you need to check the SSL (secure sockets layer), which provides you with a secure and private connection. When you log in to the Internet Banking Service, double-click the padlock symbol at the bottom of your browser to ensure the site certificate is valid and belongs to Abbey International. As long as the padlock symbol is there and is issued to Abbey International, you are not at any risk from online banking fraud.
Trojans
A trojan is a malicious file, usually disguised as something useful but, when activated, can cause loss, damage or even theft of data.
The critical difference between a trojan and a virus is that a trojan cannot replicate itself. The only way that it can spread is if you help it, typically by opening an email attachment, or downloading from the internet.
Once you open this file, the trojan goes to work destroying your computer's functionality – possibly recording your logging in details. A good line of defence is not to accept files from someone you don't know, and if you have any doubts, then do not open the file.
Banking on a first-name basis
Recently I opened a new checking account to get free money from the bank. Since I had the option to give the account a name I called it "Home," as in "a home of my own."
Did that really make a difference?
You bet it did. When I look at the account I get a mental picture of a bungalow with a southern exposure that will let me grow vegetables. This inspires me to think about other ways to pile money into the Home account: manufacturer's rebates, cash from occasional babysitting gigs, the $50 bonus I'm getting for filling a vacancy at the apartment building I manage.
In other words, it got me fired up. I've even started picking up soda cans on my daily walks. Prices for recycled aluminum are currently low so I'm getting only a dollar or two per week. But the longest journey begins with a single step, right? And since this new checking account came with a $100 bonus, I figure I'm already $100 ahead. (Yes, I know I will owe income tax on the bonus. It's still pretty good pay for the few minutes it took me to open the account.)
The money won't actually stay in the account, mind you. I'm going to transfer it to an online bank account to earn at least a little bit of interest.
Some readers of the Smart Spending message board play the name game, too. "Sjprof" has an account named "Kitty" for future veterinary expenses and "Zoom" for a car; the "Sabbatical" account will, with luck, allow the prof to take a year away from academia. "Hootieman" has a retirement account named "Freedom."
Reader "SC CDF" suggests a further refinement: Create passwords for these accounts to reinforce your goal. For example, set your Home account's password to include the zip code of the neighborhood in which you'd like to live some day.
A woman posting as "Lynn D" has funds named "Contingency" (aka the emergency fund), "Vacation," "Freedom Account" (infrequent expenses such as car registration or insurance), "New Car Fund" and "Home Down Payment Fund." Some of these can't be labeled online but she labels them on spreadsheets.
"I think if I had just one account with no nicknames it would be easy for me to spend that money," she writes, "because it's not tied to a specific goal."
How about it, readers? Do you name your accounts, and does this help you envision specific goals? Post your comments below or on this message board thread.
Did that really make a difference?
You bet it did. When I look at the account I get a mental picture of a bungalow with a southern exposure that will let me grow vegetables. This inspires me to think about other ways to pile money into the Home account: manufacturer's rebates, cash from occasional babysitting gigs, the $50 bonus I'm getting for filling a vacancy at the apartment building I manage.
In other words, it got me fired up. I've even started picking up soda cans on my daily walks. Prices for recycled aluminum are currently low so I'm getting only a dollar or two per week. But the longest journey begins with a single step, right? And since this new checking account came with a $100 bonus, I figure I'm already $100 ahead. (Yes, I know I will owe income tax on the bonus. It's still pretty good pay for the few minutes it took me to open the account.)
The money won't actually stay in the account, mind you. I'm going to transfer it to an online bank account to earn at least a little bit of interest.
Some readers of the Smart Spending message board play the name game, too. "Sjprof" has an account named "Kitty" for future veterinary expenses and "Zoom" for a car; the "Sabbatical" account will, with luck, allow the prof to take a year away from academia. "Hootieman" has a retirement account named "Freedom."
Reader "SC CDF" suggests a further refinement: Create passwords for these accounts to reinforce your goal. For example, set your Home account's password to include the zip code of the neighborhood in which you'd like to live some day.
A woman posting as "Lynn D" has funds named "Contingency" (aka the emergency fund), "Vacation," "Freedom Account" (infrequent expenses such as car registration or insurance), "New Car Fund" and "Home Down Payment Fund." Some of these can't be labeled online but she labels them on spreadsheets.
"I think if I had just one account with no nicknames it would be easy for me to spend that money," she writes, "because it's not tied to a specific goal."
How about it, readers? Do you name your accounts, and does this help you envision specific goals? Post your comments below or on this message board thread.
Justin's Banking / Loans Blog
Are You a Rate Chaser?
Rate chasers move money from bank to bank earning the best rates available.
While it's normal to switch for better rates, true rate chasers are fanatical about how much they earn and they switch frequently. They know which bank pays the most, and they'll move for a quarter percent APY.
Does it make sense to work that hard? It depends on how much you have and what your time is worth. Large balances make the endeavor more attractive. However, there are pitfalls. For example, your money might not earn anything for a few days while moving from bank to bank.
A good rate chaser knows about the tradeoffs and how to structure transfers to lose as little interest as possible. Are you one of these people? Tell us how you finally came to admit you're a rate chaser.
Rate chasers move money from bank to bank earning the best rates available.
While it's normal to switch for better rates, true rate chasers are fanatical about how much they earn and they switch frequently. They know which bank pays the most, and they'll move for a quarter percent APY.
Does it make sense to work that hard? It depends on how much you have and what your time is worth. Large balances make the endeavor more attractive. However, there are pitfalls. For example, your money might not earn anything for a few days while moving from bank to bank.
A good rate chaser knows about the tradeoffs and how to structure transfers to lose as little interest as possible. Are you one of these people? Tell us how you finally came to admit you're a rate chaser.
The Bank Group's financial
The Bank Group's financial products range from investment and development policy loans to governments to loans for small and medium-sized enterprises. Our private sector investment arm, the International Finance Corporation (IFC), promotes private sector growth in developing countries through direct lending, equity investments and syndicated lending. The IFC can also help identify investment opportunities for potential foreign investors. See Financing for details on all of our lending operations, information on how to obtain loans, and how to access the extensive range of financial services offered.
savings and loan association
savings and loan association (or "S&L"), also known as a thrift, is a financial institution that specializes in accepting savings deposits and making mortgage and other loans. The S&L or thrift term is mainly used in the United States; similar institutions in the United Kingdom, Ireland and some Commonwealth countries include building societies and trustee savings banks.
They are often mutually held (often called mutual savings banks[citation needed]), meaning that the depositors and borrowers are members with voting rights, and have the ability to direct the financial and managerial goals of the organization, similar to the policyholders of a mutual insurance company. It is possible for an S&L to be a joint stock company and even publicly traded. However, this means that it is no longer truly an association, and depositors and borrowers no longer have managerial control.
By law, thrifts must have at least 65 percent of their lending in mortgages and other consumer loans — making them particularly vulnerable to housing downturns such as the deep one the U.S. has experienced since 2007.
They are often mutually held (often called mutual savings banks[citation needed]), meaning that the depositors and borrowers are members with voting rights, and have the ability to direct the financial and managerial goals of the organization, similar to the policyholders of a mutual insurance company. It is possible for an S&L to be a joint stock company and even publicly traded. However, this means that it is no longer truly an association, and depositors and borrowers no longer have managerial control.
By law, thrifts must have at least 65 percent of their lending in mortgages and other consumer loans — making them particularly vulnerable to housing downturns such as the deep one the U.S. has experienced since 2007.
