Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: WEDNESDAY, October 18, 1995 TAG: 9510180065
SECTION: BUSINESS PAGE: B-8 EDITION: METRO
SOURCE: MAG POFF STAFF WRITER
DATELINE: LENGTH: Medium
Federal law that took effect Oct.1 provides that banks can cross state lines and accept deposits across state lines. First Union merged its customer services among its eight banking subsidiaries Monday.
First Union said it is one of the few banks in the United States that has the common computer operating systems to put the system into effect immediately.
The change means when a First Union customer from Roanoke visits Atlanta, he will be able to cash a check drawn on his Roanoke account or make a deposit to his Roanoke account.
President John R. Georgius said the customers are no longer hampered by legal restrictions or geographic boundaries. ``We see this as an opportunity to expand and improve our customer service, and to offer borderless service from state to state within our region," Georgius said.
The First Union system covers Virginia, Florida, North Carolina, South Carolina, Georgia, Tennessee, Maryland and Washington, D.C.
Effective this week, First Union's 8 million customers can conduct virtually any banking transaction, including cashing checks, renewing certificates of deposit or making payments as if they were at their home branch.
The bank estimated that about a third of its customers do business in more than one state.
``Our research has shown that commercial customers who do business in 20 or more states have an average of more than 400 banking accounts,'' Georgius said. ``Interstate banking allows these customers to consolidate the number of these accounts into just a few, or even one account.''
The next step in the nation's move to interstate banking will come in June 1997, when banks will be permitted to merge their subsidiaries that now operate in each state they serve.
by CNB