Here's the press release
Europe's largest Internet bank launches in Ireland
RaboDirect to surpass existing deposit rates
One of the world's largest banks and Europe's largest internet bank, the AAA rated Rabobank Group, today announced it is to set up a retail finance arm in Ireland with the launch of RaboDirect, a new internet bank for Irish savers and investors. The online bank RaboDirect.ie goes live immediately providing customers with several new savings and investment choices.
RaboDirect will initially provide an instant demand deposit account attracting a highly competitive, variable flat rate of 3%. The rate will be available uniformly to all RaboDirect customers as there is no minimum or maximum deposit required and no fees or charges apply. Interest is calculated daily and there are no penalties or time delays for early withdrawals. As a purely internet bank, without the overheads associated with traditional banks and shared back office support, RaboDirect operates from a low cost base and can therefore offer consistently high rates. The rate will apply to all savings accounts regardless of the sums on deposit or the duration.
In addition RaboDirect is also offering execution only investment products including the highly rated Morning Star and Standard & Poor's managed funds from Robeco and Merrill Lynch respectively. There is a complete range of funds available, to enable customers to choose an investment that suits their risk profile. The entry and exit costs are very low (0.75%), and there are no additional banking costs.
Parent company Rabobank Group is among the world's largest banks and its consistent AAA rating makes it among the most secure. Rabobank was rated the world's safest non-listed bank in October 2004 by Global Finance magazine.
With RaboDirect all transactions take place online using a secure system developed by security partners VASCO, based on the principle of something you have, i.e. a Digipass, and something you know, i.e. a pin code. The Digipass operates in such a way that the customers' online access code changes every 36 seconds. VASCO's systems are used by 350 international financial institutions and some 1,500 blue chip corporations and governments located in more than 80 countries, but have not been available in Ireland up to this point.
RaboDirect customers can open accounts online from anywhere without ever having to enter a branch office, and can access their money online, 24 hours a day, 7 days a week. Full back up is provided by the Customer Contact Centre which will operate from 8:00am-8:00pm Mon-Fri and from 10:00am-5:00pm on Saturday. To make lodgements customers simply transfer his/her funds from their primary bank account to their RaboDirect Savings account. To make a withdrawal, the customer can electronically transfer funds from his/her RaboDirect account to any other Irish bank account.
Ralf Dekker, Board Member, Rabobank International stated, "The launch of RaboDirect.ie marks our entry into a third country with our internet banking offering. Rabobank has been active in internet banking since 1994 when it first launched in the Netherlands. We now have 1.9 million active internet clients in the Netherlands. In 2002 we launched our Belgian online bank Rabobank.be. Today some 36,000 people, with combined savings of over ¤900 million, are banking with Rabobank.be. Ireland is the second overseas market in which we have launched and our growing commitment to internet banking will see Rabobank Group extend into more markets worldwide. We look forward to Irish savers and investors reaping the same benefits from our consistently high rates as our Dutch and Belgian customers have enjoyed."
Commenting at the launch Mr. Greg McAweeney, General Manager, RaboDirect said, "There are real opportunities to introduce transparent, uncomplicated and accessible products. There is a clear gap between the financial products and services currently available and what the public want. We can offer a rate 10 times the average deposit account which will bring real competition into the market. In addition our managed funds will provide opportunities for investors and in particular SSIA account holders to continue their investment at a level to suit their needs.
As a virtual bank without the overheads of the more traditional bricks and mortar banks, we have many distinct advantages, which underpin our ability to consistently offer a higher rate without penalties, fees or charges. Our aim is to be the "best buy" by focusing on a competitive rate as well as being convenient, simple and transparent. In addition since we are not publicly quoted we are not shareholder driven and as a result all profits go into reserves, which in turn can be used to pay top level interest rates".
Applicants can open an account by completing the online application form and forwarding it, along with a cheque drawn on their primary bank account, proof of identity such as a passport or driving licence, and two recent bills in their own name to RaboDirect, Rabobank International Dublin Branch, Charlemont Place, Dublin 2. Within a few days they are issued with a Digipass, account number, and PIN code.
RaboDirect is part of Rabobank Group, which already has a presence in Ireland through its business arm ACCBank and its wholesale operation, Rabobank Ireland plc.
ENDS