Los Angeles-based First Interstate Bancorp has joined CommerceNet, a consortium whose goal is to create a marketplace where companies can do business over the Internet.
CommerceNet will support business services that normally depend on paper-based transactions. It's touted as the first step toward full-fledged electronic commerce on the Internet.
With $53.5 billion of assets, First Interstate joins a group of more than 30 companies, most in the technology or financial services sectors. Other bank members include Bank of America, Citibank, and Wells Fargo.
Wide Use
More than 20 million people in 130 countries use the Internet, and usage is increasing 10% a month.
Banks and other companies have shied away from the Internet because access has been difficult, security has been unreliable, and the means to pay for transactions hadn't been established.
As it is envisioned, Commercenet will offer a way to access catalogues and product literature. Users will point and click their mouses through services without having to log in and use complex command lines.
CommerceNet also plans to provide an arena for competitive bidding and solicitations as well as a way for companies to exchange data and collaborate on engineering projects. Of particular interest to the bank members: An interactive product for electronic data interchange is also in the works.
EDI Potential Seen
According to Randy Kahn, senior vice president and manager of corporate electronic products, joining CommerceNet is part of First Interstate's commitment to delivering its products and services electronically.
"We've been looking at the information superhighway and ways to crystalize our thought around using disparate technologies," said Mr. Kahn. "First Interstate is particularly interested in the potential CommerceNet offers our business clients to increase efficiencies by extending EDI to a broader cross-section of the business community."
Although CommerceNet is still in its early stages, Mr. Kahn estimated that a pilot program for electronic data interchange will be introduced by early next year that will offer payment services as well to a group of trading partners.
Ms. Sullivan is a freelance writer based in New York.
