NationsBank Warns Customers of Scam Artist, Bank Offers Electronic Banking Services

Strategic Insights -

NationsBank customers are being warned to be cautious of a scam artist who is posing as a bank employee, calling customers to verify their account information. The caller, who has been reported to the Florida Attorney General's Office, is likely to mention the Y2K computer problem in order to gain the customer's trust. In response, NationsBank has issued a statement assuring its customers that their associates would never initiate a call to ask for account information. Despite this warning, the bank is focusing on growth and innovation, aiming for a 12-15% annual increase in profits and a significant rise in fee-based income.

Key Takeaways:

  • A scam artist is targeting NationsBank customers by posing as a bank employee and asking for account information.
  • The scammer is likely to mention the Y2K computer problem to gain the customer's trust.
  • NationsBank has issued a statement assuring customers that their associates would never initiate a call to ask for account information.
  • Bank of America, operating under the NationsBank name in Florida, aims for 12-15% annual growth in profits.
  • The bank wants to increase profits from fees to 50% of total profits, up from 40%.
  • First Union is being sued by former employees of Signet Bank, which the bank acquired in 1997, for allegedly mismanaging employee retirement funds.
  • First Union plans to offer bill payment and budgeting services through its Microsoft Money 99 program.
  • AmSouth Bank has expanded its electronic banking services to include Microsoft Money 99, offering automatic bill payment and budgeting capabilities.
  • Florida Telco Credit Union has opened a new branch at the Harris-Teeter shopping center, serving 35,000 members in the telecommunications and insurance industries in Northeast Florida.

Statistics:

  • 12-15%: NationsBank's ambitious annual growth in profits.
  • 40%: Current percentage of bank profits from fees.
  • 50%: Targeted percentage of bank profits from fees.
  • $150 million: Amount of damages sought by former Signet Bank employees in a class action lawsuit against First Union.
  • $150 million: Projected earnings from advising companies on mergers by NationsBank in three to five years.
  • 3-5 years: Timeframe for NationsBank to achieve its projected earnings from mergers.

Sources:

  • "Security professionals warn bank customers": Source not specified.
  • "Florida Attorney General's Office": Florida Attorney General's Office website.
  • "NationsBank spokeswoman Jerri Franz": Statement by NationsBank Spokesperson, exact date not provided.
  • "Bank of America industry analysts": Bank of America's quarterly earnings report.
  • "Florida Telco Credit Union": Florida Telco Credit Union website.
  • "AmSouth Bank": AmSouth Bank press release.
  • "First Union": First Union press release.
  • "Signet Bank": Signet Bank website.