A US conglomerate is to launch the first post recession online bank in the UK. GE Capital, the financial branch of General Electric, will launch the online bank after successfully starting a similar venture in Germany. The German equivalent was launched on July 12th of this year and has been well received, offering savers a full deposit guarantee and a competitive interest rate of 2.25 per cent on savings accounts with no limit to the amount that can be invested.
The bank will be known as GE Direct, and while the bank will offer a range of bonds and savings accounts, it is not known what other services will be made available, such as current accounts, loans and credit cards . Rumours are abound that the GE corporation will extend its online banking services throughout Europe following the successful start enjoyed by its German division, though the company has yet to comment on the speculation.
GE Direct will have to contend with considerable regulatory interference, after the Financial Services Authority tightened legislation surrounding online banking as part of a shakeup following the collapse of Icelandic bank Icesave two years ago.






