DePaul University, an institution with a solid reputation for technological innovation, has introduced a new online bank called DePaulBank.com for members of the DePaul community. While many universities have credit unions and credit cards, DePaul is believed to be only the second university in the United States to unveil a full-service, private label Internet bank tailored exclusively to the financial needs of university alumni, employees, students and friends.

DePaulBank.com officially opened for business in late January on the technology superhighway. The Internet-only bank offers a wide range of banking and brokerage services, including high-yield money market accounts insured by the Federal Deposit Insurance Corporation (FDIC), interest-bearing checking and savings accounts, ATM and debit cards, certificates of deposit, individual retirement accounts and online bill paying. Future product offerings will include insurance and lending products. The online venture represents a partnership between DePaul and Sutton Bank, founded in 1878 near Columbus, Ohio.

DePaulBank.com is currently reaching out to DePaul alumni and plans to offer the virtual bank’s services to faculty, staff and students within the next six months. Advantages of banking with DePaulBank.com include fast, personal service, competitive rates and low fees. Customized services such as direct deposit for DePaul employees and financial planning assistance for students will be added to the site as these groups are phased in as bank customers.

“Our goal is to provide an online bank that is specifically designed for people with ties to DePaul,” said Kenneth A. McHugh, DePaul executive vice president for operations. “DePaulBank.com eliminates the overhead of traditional banks to provide convenient, secure access to competitive financial products. This initiative is a natural step for DePaul, a university with a reputation for technological innovation.”

Financial planning tools for future and current college students and their families are a unique feature under development with DePaulBank.com, said David Kalsbeek, vice president for enrollment management. “The majority of students entering college and their parents expect universities to provide financial planning services, but most universities fail to meet their expectations,” he said. “DePaulBank.com soon will partner with various offices at DePaul to offer valuable online tools to help students and their families determine college costs and plan for the future. It’s part of DePaul’s mission and an innovative extension of our commitment to making education accessible.”

Customer service will be the hallmark of DePaulBank.com, said J. Anthony Gorrell, senior vice president and chief financial officer of Sutton Bank. DePaul customers with financial questions have access to experienced and knowledgeable bankers online, a service that will expand to 24 hours a day, seven days a week in the coming months. DePaulBank.com ATMs will be installed on DePaul campuses. Fees charged to customers who use ATM’s outside the network will be reimbursed up to $6 per month.

Many account features will be offered at no charge, such as online statements and account access, free incoming wires, direct deposit, postage paid deposit envelopes, automated telephone banking support, and bill payment services. Debit card users will earn 10 cents per transaction.

DePaul began exploring the idea of creating an Internet bank more than two years ago. “We conducted extensive market research that indicated significant interest in an online bank among people with an affinity for DePaul,” said Timothy M. Turmelle, technology executive with Crowe, Chizek and Co. LLP, a CPA consulting firm that has partnered with DePaul and Sutton Bank to design and market DePaulBank.com. “Our firm has participated in the successful launch of over 50 online banks including targeted affinity groups.

DePaulBank.com expands this concept to the university community, offering state-of-the-art, secure online banking services with a name that the DePaul community can trust.”

Note to Editors:Drexel University in Philadelphia began offering what is believed to be the first university-related full-service online bank, www.ajdrexelbank.com, in November 2000.