The central savings bank of the state of Baden-Württemberg, LBBW, has enlisted mobile phone network MobilCom in a joint venture, Mobilbank, offering internet, banking and share trading services on the move. The duo have invested an unstated sum upwards of ten million DM in the project.
According to MobilCom chief executive Gerhard Schmid: “The aim of the bank is to attract customers to our UMTS services." However, the venture will initially be limited to basic banking services although additional banking partners are sought.
LBBW chief executive Dietmar Sauer added that Mobilbank is forecast to move into profit within two to three years.
Mobilcom’s share price rose 4.35% to 36 euros following Friday’s announcement, while LBBW stock remained static.
News Source: Handelsblatt (Germany)