If such a bank is ultimately set up, it will not be wholly independent, but a unit within the bank's banking division in the same format as Yashir Leumi.
Bank Leumi (TASE: LUMI) is considering establishing an Internet bank on its Leumi Total Digital platform. Sources inform ''Globes'' that bank officers are preparing staff work to examine the pros and cons of an Internet bank. If such a bank is ultimately set up, it will not be wholly independent, but a unit within the bank's banking division in the same format as Yashir Leumi. An Internet bank's low operating costs would make it possible to offer customers low fees and interest rates.
Bank Leumi is examining the situation overseas: how an Internet bank model operates and their profit margins. There is no successful model of an independent Internet bank in the world; they are online arms of a larger bank, such as ING Direct, the Internet arm of Dutch ING Group NV (Euronext: INGA; NYSE: ING) and HSBC First Direct, a unit of HSBC Holding plc (LSE: HSBA; HKSE: 005; NYSE, Paris: HBC).
Bank Leumi said in response, "The establishment of an independent Internet bank by Bank Leumi is not on the agenda. Bank Leumi provides the most advanced online banking services of all the banks, through its Total Digital platform, which is the group's main online platform, and it intends to continue developing additional products and services in the future."
Published by Globes [online], Israel business news - www.globes-online.com - on November 11, 2013
© Copyright of Globes Publisher Itonut (1983) Ltd. 2013