Oct. 17 (Bloomberg) -- CIT Group Inc., the commercial lender run by John A. Thain, said it opened its online consumer bank to help diversify its funding sources.
CIT Bank will offer certificates of deposits through the Internet, the New York-based company said today in a statement. In 2012, CIT Bank may also offer checking, savings, online bill pay and mobile banking, according to the statement.
CIT is reversing its strategy of shrinking the balance sheet after exiting bankruptcy almost two years ago. The lender will look to use Internet deposits to help fund its asset growth, Thain said last month.
“The online bank will help us meet the financing needs of our small-business and middle-market clients,” Thain said today in the statement. “The launch of CIT Bank online is another important step in our efforts to diversify our funding sources into stable, low-cost deposit products.”
CIT will “likely at some point” acquire branches to help fund its asset growth, Thain said in September. Regulators encourage deposit gathering at brick-and-mortar locations, he said at the time. The development of Internet deposit-taking is also a “significant positive” for regulators, he said.
CIT is still required to submit to tighter supervision by the Federal Reserve Bank if New York, which signed a written agreement with the lender in August 2009.
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