Banks owned by insurance companies have lost $7 million to well over $500 million because of poor business models, according to a company that provides private-label banking services as an alternative.
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In a report issued Tuesday, InBank of Alexandria, Va., also said that insurance and banking products are complementary but that different operational infrastructures and sales cultures make it hard to integrate services.
InBank, a unit of Affinity Financial Corp. of Irvine, Calif., has technology that enables insurance companies to market banking products without building or buying a bank.
