Web Start-Up to Host Loan, CD Auctions
American Banker (08/17/00) Vol. 5, No. 17 p.1; Toonkel, Jessica

MoneyUnion, an Internet start-up company, plans to open online bidding in auctions for certificates of deposit (CDs) and consumer loans. The company will offer the bidding through its Web site, MyBestInterest.com. M&I Bank of Milwaukee will begin offering CDs through the site on Monday, and loans by the yearend, when 12 to 20 other financial institutions will do the same. Auctions for CDs have become increasingly popular, with companies such as Flagstar Bancorp, PNC Financial, and USABankshares joining the trend. As far as loans are concerned, PrimeStreet has addressed the small-business loan market and has signed up more than 30 lenders since its introduction in April. Meanwhile, RateGenius is initially using automobile loan auctions and has signed on Independent Bankers Bank of Dallas, a group of 700 community banks as its first customer. Alan Kuhane, founder and CEO of MoneyUnion, stated that "banks get the customers they want and the only decision they have to make is what their minimums are for the different credit categories." Meanwhile, he said, "consumers ... have access to the best rates."

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