ROYAL BANK BANKING ONLINE WITH AOL CANADA
By Adnews Staff
Royal Bank of Canada is acquiring a 20 per cent stake in AOL Canada as part of a major marketing agreement to increase its online banking business. Under the terms of the agreement, between Royal Bank and America Online Inc., Royal Bank will pay US $60 million for the stake in AOL Canada and will sign additional marketing agreements between its U.S. subsidiaries Security First Network Bank of Atlanta, Georgia and Bull & Bear Securities of New York with AOL properties in the U.S. and Canada. The additional agreements will total more than US $7.5 million. Security First is a fully transactional Internet bank and Bull & Bear is an online brokerage. "We believe this breakthrough strategic alliance will help us build on AOL Canada's strong momentum to become the leading Internet online service in Canada," said AOL International president Jack Davies. Under the new agreement both companies will have the opportunity to co-brand and bundle services. Teaming up with Royal Bank, gives AOL Canada a base of 10 million customers to which it can introduce its services and give Royal Bank customers easier access to its products increasing its online banking business. Under the agreement Royal Bank has the option to acquire a further interest in AOL Canada.