Prodigy to Offer Financial Services Over the Internet

Officials at Prodigy Services Co. are looking to home banking and electronic commerce on the World Wide Web to boost their company's sagging fortunes.

Prodigy, sold in May to a group of foreign investors, is the smallest of the major on-line networks. Spokesmen for the White Plains, N.Y., company said financial services, such as home banking, can help it stay competitive with two larger rivals, America Online and Compuserve.

Prodigy plans to make its information services accessible over the Internet later this year, and officials said they hope the 17 banks that offer home banking through Prodigy will do the same.

"On-line banking is a terrific distribution channel for banks, and it improves (customer) retention for the banks and the on-line service," said Prodigy's Seth D. Radwell, who last week was promoted to vice president for marketplace, money, and commerce.

Mr. Radwell came to the company from McKinsey & Co. in January as director of financial operations, responsible for business planning. In his newly created post he will be responsible for commerce-based transactions - including banking, shopping, brokerage, and travel - over the Internet and conventional dial-up channels. He reports to Josh Grotstein, senior vice president of content,

Prodigy adopted an Internet strategy last year, with a lower monthly fee for unlimited access to its site. Officials at Compuserve and Microsoft Network also have announced plans to utilize the Internet.

Prodigy, the first of the on-line services to offer home banking, was sold by International Business Machines Corp. and Sears, Roebuck and Co. to Grupo Carso for about $250 million. Grupo Carso does business as International Wireless and owns a stake in Mexico's major telephone company.