Feeds

First-e goes titsup.com

E-Bank is E-Sank

  • alert
  • submit to reddit

Intelligent flash storage arrays

Online bank first-e is to shut up shop after failing to attract enough customers.

The operation, owned by Paris-based Banque d'Escompte, will close its UK and Germany operations next month.

Banque d'Escompte, which will continue its offline banking operations in France, yesterday signed an agreement with SelfTrade UK, owned by German outfit DAB bank, to sell the first-e customer base.

Account holders have until 30 September to decide what to do with their accounts.

Investment account holders can either switch to SelfTrade, move their account to any other bank, or do nothing - in which case the account will automatically move to Banque E'Escompte.

A representative for DAB said the bank would pay up to 338 euros ($302) for each customer who switches to its service.

Current account holders are being encouraged to move to fellow e-bank Cahoot.

First-e, which started trading in the UK in November 1999, has a total of 100,000 active customers in the UK and Germany combined. Approximately a third of these are in the UK.

Around 250 jobs will go at first-e's tech support centre for the UK and Germany, which is based in Dublin.

Alain Wormser, Banque d'Escompte chairman, said today first-e failed because it was unable to attract enough customers.

"The market conditions were not good enough for our business model to work," he said.

Wormser warned that it was not worth being an online bank in the current economic climate if the business had less than 500,000 customers.

"Unless you are a really big player, it is very difficult to be profitable and to bring customers the value they're asking for," he added. ®

Related Stories

Irish banks suffer dotcom flatulence

Top 5 reasons to deploy VMware with Tegile

More from The Register

next story
WHY did Sunday Mirror stoop to slurping selfies for smut sting?
Tabloid splashes, MP resigns - but there's a BIG copyright issue here
Spies, avert eyes! Tim Berners-Lee demands a UK digital bill of rights
Lobbies tetchy MPs 'to end indiscriminate online surveillance'
How the FLAC do I tell MP3s from lossless audio?
Can you hear the difference? Can anyone?
Inequality increasing? BOLLOCKS! You heard me: 'Screw the 1%'
There's morality and then there's economics ...
Google hits back at 'Dear Rupert' over search dominance claims
Choc Factory sniffs: 'We're not pirate-lovers - also, you publish The Sun'
EU to accuse Ireland of giving Apple an overly peachy tax deal – report
Probe expected to say single-digit rate was unlawful
While you queued for an iPhone 6, Apple's Cook sold shares worth $35m
Right before the stock took a 3.8% dive amid bent and broken mobe drama
prev story

Whitepapers

A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Beginner's guide to SSL certificates
De-mystify the technology involved and give you the information you need to make the best decision when considering your online security options.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.