Bank of Boston and Microsoft Partner to Offer On-line Banking Services

Strategic Insights -

Bank of Boston, the first New England-based bank, has announced its partnership with Microsoft to offer customers on-line banking and bill payment services through Microsoft's Money for Windows 95. This service, expected to be available in the Fall of 1995, will enable customers to access their accounts, transfer funds, and make payments electronically from the comfort of their homes using a personal computer and modem. Bank of Boston Vice Chairman Edward A. O'Neal emphasizes the convenience and availability of this service, stating that it is "the logical next step in our strategy to provide customers with convenient access to our products and services."

Key Takeaways:

  • Bank of Boston is the first New England-based bank to offer on-line banking and bill payment services with Microsoft.
  • The service will be available to customers through Microsoft's Money for Windows 95, which is expected to be available in the Fall of 1995.
  • Customers will be able to check information on their accounts, transfer funds between accounts, and order checks and transactions histories.
  • On-line banking will enable users to make payments electronically to merchants, schedule payments up to 60 days in advance, and establish automatic or recurring payments.
  • By 1997, O'Neal predicts that more than 50 percent of banking transactions will be conducted beyond the traditional branch network.
  • Microsoft asserts that close to 50 percent of Windows users are already using their home PCs for an on-line service.
  • Bank of Boston expects to serve over 32 million U.S. households with PCs, making on-line home banking a lucrative market.

Statistics:

  • By 1997, more than 50 percent of banking transactions are expected to be conducted beyond the traditional branch network.
  • Close to 50 percent of Windows users are already using their home PCs for an on-line service.
  • Bank of Boston serves over 32 million U.S. households with PCs.
  • The Corporation's assets total $43.5 billion as of March 31, 1995.
  • Microsoft's Money for Windows 95 is designed to be easy to use, with a visually attractive interface and a task-oriented approach.

Sources:

  • Bank of Boston Corporation and Microsoft Corporation press release, July 10, 1995.
  • Yankee 24, NYCE, and PLUS SYSTEM networks.
  • New York and Boston stock exchanges.