But Salem Five Chairman and Chief Executive William H. Michelson realized early on that a growing number of his customers were becoming technologically savvy. He figured they would be tempted by online financial services offered by rivals such as Fidelity Investments, just a few miles down the road in Boston. Salem's online effort has been modest, but innovative. Walk through the headquarters of Salem Five, which was founded in 1855, and you'd never know it was anything other than a typical corner bank. One marketing executive designs the Web site.
Programming is done by a seven-person freelance shop down the street from the bank's headquarters.
It offers bill payment, investments, insurance, and loans for customers in New England states in which Salem Five is licensed for lending. Salem Five's original site won accolades from reviewers. That has attracted customers to Salem Five from all 50 states and 14 foreign countries. Its financial performance has been better than a neighborhood rival. But Michelson says he fields calls regularly from investment bankers who want to take his bank public.