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E-Banking Tango
Here's one way to jump-start online banking: wreck your economy, slap controls on cash withdrawals from banks so consumers can't drain every last peso from their accounts, and voilà! e-banking takes right off.
That's one lesson from Argentina, where the economic crisis has made consumers reach for the mouse. When authorities limited monthly cash withdrawals to 1,500 pesos (now about $1,070), bank lines grew, cramping the style of Argentines accustomed to paying bills in cash. Since checking accounts are rare, Argentines are turning to the Web to extract money from savings accounts and pay creditors--avoiding the hassles of both lines and illiquidity. Red Link, one of two companies that manage Web sites for Argentine banks, says online transactions on its network jumped 314% in December, to 1.9 million--in a nation of 3.1 million Web users. Competitor Banelco says its Web transactions rose 282%. "It was ridiculous standing in those long lines," says student Inés Vernengo.
No one knows whether Argentina's tango with Web banking will last, though Vernengo says she's hooked. But Argentines, whose pesos were devalued 29% on Jan. 6, might think they have bigger problems anyway.
By Aixa M. Pascual
The Water's Still Cold
Tech stocks have been hot lately, but not hot enough to ignite IPOs.
A handful are planning to go out, but they may face
a mixed reception. Here's a sampling:
COMPANY TRADE DATE VALUATION
Synaptics January 29 $280 million
The skinny: Strong debut for touchpad maker, which has $83 million
in sales and was profitable for two of the last three years.
Stock rose 19% on the first trading day.
PayPal Early February $830 million
The skinny: Leading online payments company grew 1,000% in the
first nine months last year but lost $89 million. High
valuation, but Street likes it anyway.
InterVideo TBA TBA
The skinny: Maker of DVD-editing software for PCs plans to expand
into home networking. Lost $5.9 million in first nine months of
2001 on $23.7 million in sales.
Verizon Wireless TBA TBA
The skinny: Largest U.S. wireless carrier made about $1 billion in
2001, but spin-off was delayed amid telecom turmoil. Don't expect
a deal before summer.
Data: Renaissance Capital
Sorry, Time's Up!
The latest fad among jobless techies in San Francisco? Taxpayer-funded Internet access at public libraries. "I had DSL at $50 per month when I worked, but there's no way I can afford that now," says Kara Molsen, a 25-year-old dot-com layoff victim.
As local unemployment has surged to 5.7%, once-quiet bookworm oases now swarm with surly surfers. Weekday demand for the main library's 300 computers is so high that administrators split them into "express" terminals, with a 15-minute limit, and 1-hour terminals--with strictly enforced waiting lists. "It's like a stampede in the morning for the sign-up sheet," says library spokeswoman Marcia Schneider. "Security has to hold people back."
Librarians say the congestion has even sparked Web rage. In December, one user screamed for 10 minutes at a librarian who kicked him off a terminal. "He threatened to sue," says Eleese Longino, 26, a patron who saw the incident. For some, the term "Internet craze" may be taking on new meaning.
By Brian Grow
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Copyright 2002 , by The McGraw-Hill Companies Inc. All rights reserved.
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