Sunday, March 30, 2008
Virtual safe deposit boxes open for business
byTired of making trips to the bank to stuff legal documents in a safe deposit box? Now consumers can lock up their important documents online, thanks to electronic document archiving soon to be offered by banks. 
While not new to commercial or business banking customers, this service stands ready to expand into the consumer market, building on proven technology from financial imaging and payment systems.
Wells Fargo claims to be the first player in the retail market. It announced last week its vSafe service for online personal banking customers will be ready by summer. Other banks, like JP Morgan Chase & Co., already offer similar services for business customers.
At Wells Fargo, customers will be able to use the vSafe service (priced at $4.95/month for 1 gig, up to $14.95/month for 6 gigs), to store electronic tax returns, wills, trust, financial documents, medical files, photographs and more.
Banks are betting that their status as a trusted financial partner (plus heavy duty online security, encryption and backup) will allow them to get more share of their customers’ virtual documents, (and increase share of wallet, as this service comes with a fee).
Other non-bank players (Microsoft, Apple, Google and Iron Mountain for example) offer online storage as well, but “they may lack the reputation for trust that bankers have long cultivated,” said an analyst for Celent, quoted in American Banker (registration required).
At a time when banks are fighting to retain customers, grow low-cost deposits and increase fee income, experts predict things to heat up as banks further define an evolving “clicks and mortar” role to be the virtual guardian of your electronic documents.
