IoT
IoT
News
News
11/26/2002
10:58 AM
50%
50%

E-Trade Continues Diversification Through Lending Acquisition

Online financial-services firm to buy Ganis Credit for $101 million.

E-Trade Group Inc. continues its aggressive move into new markets as the Internet-based financial-services firm further diversifies its business lines. The company said Tuesday that its E-Trade Bank division will acquire the consumer-finance business Ganis Credit Corp., a U.S. subsidiary of Deutsche Bank AG, for approximately $101 million. The deal is expected to close next year.

The acquisition will let E-Trade offer customers loans for recreational vehicles and marine and motor-sport equipment. E-Trade will take on $1.7 billion in recreational vehicle, marine, and motor-sport loans from the sale.

E-Trade, which made its name in the 1990s as one of the largest online-only discount brokerages, has been working toward becoming a full-service financial institution through a string of acquisitions during the past few years. Today, the company's brokerage services garner only one-third of E-Trade's revenue, with mortgages and other services making up the rest. Conversely, in 1998, brokerage fees and commissions accounted for 80% of the company's revenue, says Connie Dotson, chief communications and knowledge officer at E-Trade.

By adding more products, president and chief operating officer Mitch Caplan says, E-trade will be able to cross-sell to customers and offer one-stop online and in-person financial services.

Comment  | 
Print  | 
More Insights
Comments
Newest First  |  Oldest First  |  Threaded View
Register for InformationWeek Newsletters
White Papers
Current Issue
Top IT Trends to Watch in Financial Services
IT pros at banks, investment houses, insurance companies, and other financial services organizations are focused on a range of issues, from peer-to-peer lending to cybersecurity to performance, agility, and compliance. It all matters.
Video
Slideshows
Twitter Feed
InformationWeek Radio
Archived InformationWeek Radio
Join us for a roundup of the top stories on InformationWeek.com for the week of August 21, 2016. We'll be talking with the InformationWeek.com editors and correspondents who brought you the top stories of the week to get the "story behind the story."
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.