Net Bank

Small Business Banking

Online banking pioneer to offer personalized service to underserved market; Introduces new banking platform and marketing Web site

NetBank announced it has launched banking services designed for small businesses, particularly self-employed professionals, service providers and other business owners with limited cash-based transactions. Small business customers will operate on NetBank's new online banking platform. Additionally, the company announced it has launched its re-designed Web site.

"Small business banking is a natural extension of our services and it represents an excellent growth opportunity for us," said Douglas K. Freeman, chairman and CEO of NetBank, Inc. "We can provide tremendous value from both a customer service and pricing standpoint, and that's not something a large number of small business customers are finding today.

"Our market research uncovered a high degree of dissatisfaction among small businesses over how their existing banking relationships were handled. In fact, 23% of small businesses with annual sales of more than $1 million said they have no key contact. Small business owners want high-quality service and dedicated contacts, and we can give it to them."

Among the customer service features small business customers can expect from NetBank:

• Dedicated Relationship Managers - Each small business banking customer will have their own Relationship Manager, reachable via phone or email. Relationship Managers will also make regular, proactive outbound contacts with the customer.
• Dedicated Customer Care Unit - NetBank's small business customer service team acts as a "one-stop" contact for transactional needs. They're trained to handle both the customer's small business and personal banking needs.
• Enhanced Account Administration Features - NetBank's new banking platform allows customers to set up multiple account users and define authority levels for each user.
• Online Bill Payment and Presentment - Users can make 10 free payments per month and get email notifications when new electronic bills are posted to their account.

Initially, NetBank will offer small business customers deposit products such as checking, money market, and CD accounts, as well as business equipment leasing services. NetBank plans to introduce other products, such as credit cards and loans, later this year.

Leading NetBank's small business initiative is Bert Davis, director, Small Business Banking. Davis is a 23-year veteran of the financial services industry, with extensive experience in the personal and business banking segments for large, national institutions. Davis says NetBank has an opportunity to differentiate itself from current providers in the market.

"We feel strongly about the business opportunity before us and the chance to replicate the success of our personal banking offer with the small business segment," said Davis. "Our branchless model enables us to pass the cost savings to our customers in the form of lower fees and higher deposit rates. And the deployment of our new banking platform makes it even easier and more convenient to bank with us no matter where the small business is located."

NetBank had been averaging 150-plus inquiries per month from its existing customer base regarding small business banking services. One of those customers is Christopher Forsyth who owns Family Funtime Corporation, a wholesale provider of inflatable jumpers, slides and other play structures, and advertising and promotional products based in Evanston, Illinois. Forsyth took part in a pilot program in March and today has three small business accounts with NetBank in addition to his personal banking accounts.

"The application process was a snap," he said. "And I really appreciated how quickly I was contacted by a relationship manager and how helpful they were."

ATLANTA--(BUSINESS WIRE)--June 11, 2003