ONLINE BANKING
Pure-play online banks have failed to match the convenience of their brick-and-mortar forebears. Clearly, the Net isn't enough, but Juniper Bank thinks it knows what is.
Juniper, which launched in October, is the standard-bearer for a new wave of ebanks that also includes E*Trade Bank and VirtualBank. They haven't abandoned Net banking's customary low fees and high interest rates, but their top priorities are to establish a physical presence and offer an alternative to in-the-flesh tellers. "While nobody really wants to talk to a teller," observes Paul Jamieson, a senior analyst with Gomez, "even the most Web-savvy customers want to know one is there."
As a Juniper customer, you can make deposits and withdrawals at any of 15,000 ATMs on the MAC network, and withdrawals only at tens of thousands more. Juniper reimburses $6 per month in ATM fees. In addition, some Mail Boxes Etc. locations will let you send deposits overnight, free of charge. If you have a complaint or need help, you can call, email, or chat with a representative assigned to your accounts.
Behind the physical and graphical user interfaces, Juniper offers state-of-the-art services that include wireless access (via Aether Systems), electronic bill payment and presentation (via CheckFree), person-to-person transactions, and alerts that bills are due or accounts are dwindling. Got a margin call on your Schwab trading account? Moving money to an external account is as easy as transferring funds between internal checking and savings accounts.
Still, market share isn't likely to come easily: Ninety-six percent of active online banking customers use the Web site of their original bank. To entice new patrons, Juniper plans to aggressively market credit card accounts, which can be activated by a mere mouseclick - no signature or deposit required. It's the same trick Juniper CEO Richard Vague once used to transform a small Texas bank named Mbank into First USA, one of the country's largest card issuers.
Juniper's combination of accessibility, services, and the human touch is impressive, but the dust may not settle until digital signatures and electronic payment services become pervasive.
- Andrew Marks (amarks@nyc.rr.com)
Juniper Bank: www.juniper.com.
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