A California thrift is leaping across technological and geographical borders by opening a branch in the Mall of America.
Fidelity Federal Bank, a $4.3 billion-asset subsidiary of Bank Plus Corp. of Los Angeles, last week officially opened iBank in the Bloomington, Minn., mega-mall. IBank, which has operated in the mall since November, is replacing First Bank of Minneapolis as the shopping center's exclusive banking provider.
IBank is spending nearly $500,000 to equip the bank and its business clients with screen phones, advanced automated teller machines, and personal computers.
"Our whole objective is to facilitate commerce to bring merchants and consumers together to provide an environment that is seamless in whichever access mechanism customers choose to use," said Richard Greenwood, chairman and chief executive officer of Fidelity Federal and iBank. "Our reach-out to the merchants with the screen phone is an example of that same philosophy."
Industry analysts said iBank is taking an interesting approach by appealing to small-business customers, a segment that tends to be ignored by financial institutions.
"This is an attempt to meet their needs with innovative technology," said Edward Neumann, a director in Washington of Dove Associates Inc., a Boston-based consulting firm.
IBank is providing one screen phone, designed by Quantitative Data Systems Inc. of Irvine, Calif., to each member merchant free of charge. The screen phones, available in the branch, let customers get account information, order cash and currency, and obtain exchange rates for foreign currency.
More than two million foreigners and 40 million Americans visit the mall and its 520 stores each year. Many stores and nearby hotels do not exchange foreign currency, Mr. Greenwood said. IBank will help international visitors by providing conversion rates and guaranteeing those rates if the store owner brings in the currency by the next morning, he added.
"Since there are 4.3 miles of walkways, if a merchant sent a foreign customer away to get dollars, they probably weren't going to see him again," Mr. Greenwood said.
The foreign exchange service is "a great convenience for visitors" who bring their native currency, said mall spokeswoman Teresa McFarland.
At least 150 merchants have signed up for screen phones, which cost less than $200 each. More than half the mall's businesses are iBank clients.
Although other banks' screen phone deployments have proved unsuccessful, iBank's Mr. Greenwood said his phones offer a wider variety of services. He views the devices as "thin clients" that connect to powerful server computers.
Merchants can also visit three teller lines in the mall's bank branch. There is also a private merchant area for obtaining cash and for night deposits.
IBank hopes to serve the 13,000 people who work in the mall. The branch contains three Diebold Inc. ATMs, which cash checks and display check images on the screen and on receipts. Desktop computers will provide on- line account and loan applications and assistance via video conference. The branch also has an electronic stock ticker.
Though the bank is targeting small-business owners, consultant Carl Faulkner said, merchants may not take advantage of the technology being offered.
"The question is how much do merchants really need?" said Mr. Faulkner, managing director of M One Inc. in Phoenix. There are more PCs sold in a day than there are screen phones in existence, he said.
IBank is among Mr. Greenwood's attempts to transform Fidelity Federal. The thrift is starting to update technology in its 37 branches in California.
The bank has a partnership with Americash Inc., which supplies ATMs to all Simon DeBartolo Group retail properties including the Mall of America. Fidelity Federal, which is in talks with other properties, provides the cash for the ATMs. The bank, however, is not focusing on geographic expansion, Mr. Greenwood said.
"Our Mall of America branch is an important step in our evolution from a traditional thrift to a technology-savvy financial institution ready to compete in the 21st century," he said.
