Citibank Announces Upgrade to No. 1 Rated Internet Banking Service

Business Wire, June 17, 1998

NEW YORK--(BUSINESS WIRE)--June 17, 1998--

Aggressive National Push to Introduce Enhanced Software And Expanded Access through America Online(R) and Microsoft Internet Explorer(R)

New Customers Nationwide Will Receive $25 Each -

Just for Trying Free Online Banking with Citibank!

Citibank, the first and only major consumer bank to offer customers free Internet banking nationwide, today unveiled a significant upgrade to its Direct Access Internet banking service, which will dramatically expand the bank's reach into homes across the United States. Specifically, Citibank's Direct Access service is now available to the millions of Americans who use America Online and Microsoft Internet Explorer to access the Internet; the service also features a new "reduced graphics option" to speed transaction time for customers.

As part of its commitment to introduce more consumers to the benefits of Internet banking, Citibank will launch a massive nationwide marketing campaign for Direct Access beginning in New York City on June 17. For a limited time, the bank will offer $25 cash to every new customer who uses the new Direct Access to complete at least two bill payment transactions by September 30, 1998.(1)

"Citibank is now able to deliver secure Internet banking," said Stephen J. Liguori, Citibank's Head of U.S. Branch Banking. "There are 26 million households on the Internet, and I want a million of them to be Direct Access customers by year-end. I'm confident this latest upgrade and expanded accessibility will get us there. We're planning to win these new customers from our competition - consider it a challenge to the rest of the banking industry."

Revolutionizing the Way Americans Bank

Recent improvements in online banking services, combined with consumers' growing familiarity with computer technology, have slowly begun to change the way Americans are conducting their banking, with recent trends showing that online banking is gaining in popularity. According to a recent report by Jupiter Communications, the number of American households using online banking jumped 78 percent in 1997, to 4.8 million, and that number is expected to reach 18 million households by the year 2002.

"For years Citibank has been at the leading edge in creating and delivering the kinds of electronic banking services that truly improve peoples lives," continued Mr. Liguori. "For example, ATMs didn't catch on with the public until Citibank introduced a machine here in New York that was actually consumer-friendly and safe. Getting people to bank online and over the Internet is just the latest frontier. Now with this newest version of Direct Access, we've arrived at a point where our customers can manage their personal finances anywhere, anyway and anytime they want to."

Citibank has offered online banking services to its customers in the U.S. for more than 15 years, but only recently began offering Internet banking. Customers can use the Web to quickly and conveniently access their bank accounts, pay bills to virtually anyone in the U.S., transfer funds and place orders to buy and sell securities through Citicorp Investment Services(2). The bank's Internet service was initially available only through Netscape's Navigator(R) Web browser.

Citibank Named No. 1 Online Banking Service in Recent Survey

This month, SmartMoney magazine(3) named Citibank "the best online bank" in the country, placing it above Chase Manhattan, Bank of America, BankBoston, Wells Fargo and First Union, among others. In ranking Citibank first among 15 of the nation's top consumer banks, SmartMoney credited Direct Access for being the best in terms of security, pricing, level of service and access to account information. This is the second straight time SmartMoney has rated Citibank number one for online banking.

Citibank Blue Team Distributes Direct Access Starter Kits Nationwide

To launch the latest version of Direct Access, celebrate the SmartMoney award, and reintroduce the concept of simple, safe and secure online banking to millions of potential new customers across the U.S., Citibank is planning a major, nationwide customer sign-up campaign. New customers will be encouraged to use Direct Access directly through Citibank's Web site, at www.citibank.com. Additionally, for those customers not yet on the Internet, the bank will distribute 250,000 Direct Access Starter Kits, with Web browser software, in its major retail markets around the country.

In New York for example, 100 members of a special Citibank "Blue Team" will gather at the bank's headquarters on the morning of June 17 for a massive pep rally. After receiving their assignments, the Blue Team will hit the streets of Manhattan en mass and on bicycles, with a goal of distributing 40,000 Direct Access Starter Kits, to show once and for all that Citibank offers customers the best features and value available in Internet banking. After the event concludes, Citibank will donate all Blue Team bicycles to the city's Police Athletic League.