NetBank Inc. is promoting itself on uBid.com to attract new customers.
The auction site from uBid.com Holdings Inc. of Chicago resembles eBay Inc.'s namesake site but specializes in electronics, jewelry, and other high-end goods.
NetBank said that makes uBid customers particularly appealing. Donna Mack Crowell, the direct-banking company's director of strategic alliances, said Thursday in a press release that it prefers to market its services "to consumers who share similar characteristics to our existing customer base - mainly tech-savvy persons who appreciate the value and convenience of doing business online." (NetBank did return calls requesting comment.)
Banks frequently target their Internet ads to people they consider most likely to open an account online, and they often include financial incentives. NetBank is no exception. Customers of uBid.com are eligible for up to $235 if they start banking with NetBank - $75 for opening a checking or savings account and $20, $50, or $85 for buying a certificate of deposit.
Drugstore.com customers are offered up to $250 for opening all three types of accounts with NetBank. This includes a $100 Visa gift card for those who buy certificates of deposit. TigerDirect.com shoppers are offered $70 gift cards to use at that site for opening NetBank checking and savings accounts, and buyers of certificates of deposit are offered a $20 gift card.
NetBank offers bank accounts and mortgages, but its lending business is suffering. It said earlier this month that weakness in home lending was the main reason it lost $31.4 million, or 68 cents a share, in the second quarter after posting a $2.4 million first-quarter loss and a $2.3 million profit in last year's second quarter.
The Alpharetta, Ga., company said when it reported its second-quarter results that if the mortgage operation did not improve, NetBank would consider selling it, even though it brings in desirable customers.
The retail banking business generated pretax income of $788,000, down 53.2% from the first quarter. Deposits fell 3.6%, to $2.8 billion; the decline included both retail deposits and escrow funds for the mortgage servicing business.
