The stakes are high in E-Trade Group Inc.'s entry into the ATM business.
The online trader is releasing its bank brand on 9,600 ATMs, The San Francisco Examiner reported. The company will target traditional banks and provide no-fee ATMs with links to stock prices and investment accounts.
E-Trade bought ATM network Card Capture Services Inc. in May. Since then, The Examiner reported, brokerage customers have made $5 billion in deposits and opened 320,000 accounts.
According to The Examiner, E-Trade ATMs have fewer functions than machines found at major banks. Most of the machines cannot take deposits.
Shares in E-Trade have dropped 69 percent this year, The Examiner reported. Bankers worry that E-Trade may become a victim of the hardships recently plaguing dot-com companies, while industry analysts think the company can weather the storm.
