That's what we've been concentrating on. Paul Jamieson, a senior analyst at Gomez Advisors Inc. in Waltham, Mass., said creating a separate online venture involves overhead that banking companies, which are already under profit pressures, can ill-afford. But most companies are now pulling back after realizing that a neutral brand is not a powerful marketing concept, Mr. Jamieson said. It's back to basics. Banks need to promote the brand they've already invested in and which gives them credibility.
Consumers are wary about migrating their business to nonestablished brands.
Other institutions may be reconsidering the idea of promoting separately branded Internet efforts. But on Monday the company announced plans to lay off 300 workers and warned that its first-quarter losses will be higher than expected. Richard Repetto, a senior vice president at Putnam Lovell Securities Inc. in New York, said that separate Web sites just add extra expense to a company's bottom line. Folding OnMoney's capabilities into Ameritrade's site is the brokerage's most appealing option, Mr. Repetto said. Copyright c 2001 Thomson Financial.