InBank launches private label service for insurance companies
22 November 2004 | 1017 views | 0
InBank offers a turnkey solution to insurance companies seeking to sell banking products through their agent networks and online.
Its primary value is in generating large numbers of high-quality CD customers to insurance company offices who become excellent candidates for insurance product cross sales. InBank will also provide branded, transactional banking websites offering a broad range of banking products to insurance company customers through Affinity Financial Corporation.
"InBank recently closed on a private equity offering which enables us to bring our service to a wide range of insurance companies and markets," James W. Coyne, Chairman and CEO of IB Services, LLC said. "We are very excited about showing these companies how InBank can help them become more competitive and profitable."
Coyne added, "InBank offers an insurance company an alternative to owning a bank." He pointed out that there can be significant benefits for an insurance company selling bank products, but the steep capital costs and many new risks of owning a bank are prohibitive for most. "There are many issues that insurance company owned banks must overcome, not the least of which is running the bank profitably. And very few have achieved this."
Prior to forming IB Services LLC, Coyne was EVP and Chief Operating Officer of an insurance company owned bank, Acacia Federal Savings Bank, where he developed many programs for generating new customers through bank product sales. The billion dollar thrift is one of few successful banks owned by an insurance company.
InBank provides its unique private label banking program to insurance companies through flexible licensing arrangements. Agents are trained to sell bank products to attract new customers, and insurance companies can market bank products to orphan accounts. InBank's relationship with Affinity Financial Corporation assures accurate transaction processing along with repetitive direct mail marketing to banking product customers. Insurance companies gain the benefits of bank product sales under their own identities without the significant capital cost and risks involved in starting or buying a bank.