ELECTRONIC COMMERCE UPDATE

November/December € 1996

Edify licenses EBS to AT&T

Edify Corporation (Santa Clara, Calif.; www.edify.com) has signed a product licensing agreement allowing AT&T (New York; www.att.com) to use the Edify Electronic Banking System (EBS) application as the electronic banking platform for the Atlanta Internet Bank (www.atlantabank.com), a new Internet-based banking service provided by Carolina First Bank (Greenville, S.C.).

The Advanced Network Solutions division of AT&T selected and implemented EBS in its role as the system and technology integrator for Atlanta Internet Bank.

Under the new business model adopted by the founders of the Atlanta Internet Bank, the bank will operate entirely without branches and will instead use the World Wide Web as the primary service delivery channel. The Electronic Banking System will be used by AT&T to provide Atlanta Internet Bank's banking services, which thus far include interest-bearing checking accounts, direct deposit, electronic bill payment, account transfer capability and ATM cards.

Atlanta Internet Bank has plans to expand its banking services in the near future to include loan products, brokerage services, IRA accounts and credit and debit cards. As part of its marketing strategy, Atlanta Internet Bank will be featured on the AT&T WorldNet service.
By operating entirely without branches, Atlanta Internet Bank will have significantly lower operating costs than conventional banks. Atlanta Internet Bank plans to pass these savings on to their customers by offering more competitive rates. For example, as part of its grand opening, Atlanta Internet Bank is marketing (for a limited time) a 7% interest rate (annual percentage yield 6.18%) on NetVantage money market accounts for AT&T WorldNet subscribers.

"This is the beginning of a new era in financial services," said Atlanta Internet Bank president Don Shapleigh. "We're using bits and bytes instead of bricks and mortar and passing the savings on to our customers. This will allow us to maintain very competitive rates after the introductory rate offer expires."

To simplify customer access, Atlanta Internet Bank is distributing customized AT&T WorldNet Service software to existing and potential customers through the AT&T WorldNet Business-Reach Service. Those who subscribe will log directly on to a special version of the AT&T WorldNet Service homepage, featuring a point-and-click icon that will enable them to hyperlink to Atlanta Internet Bank's website.

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