Banknorth Group Launches Online Banking for its 8 Banking Affiliates, including Peoples Heritage in Maine

Strong "eCare" customer service component defines new service

(PORTLAND, Maine) -- Banknorth Group, Inc. (NASDAQ: BKNG), headquartered in Portland, Maine, has introduced online banking for each of its eight banking affiliates, including Peoples Hertiage in Maine, giving customers the ability to do banking transactions online as well as pay bills electronically. The company also unveiled new web sites for each of its banking affiliates and a strong customer support service component called Customer eCare to encourage online use among potential customers. (For additional information on the Peoples' launch, see "Peoples Launches Online Banking" release on this site)

"It's part of a major e-commerce initiative we made a commitment to last year," said William J. Ryan, chairman, president and chief executive officer of Banknorth Group, Inc., one of the 50 largest commercial banking companies in the U.S. with $18.2 billion in assets and nearly 300 branches at banking affiliates in six northeast states. "It's the first step in our multi-year online strategy for the company and its affiliates."

The new program offers traditional online banking and bill paying services 24 hours a day via the Internet, but also gives customers an added Customer eCare component that puts a skilled person together with customers who have questions or problems, seven days a week.

"We're using our online banking services to take customer service to the next level," said Brian Wood, executive vice president and head of Banknorth's eCommerce Development Department in Portland. "Customer dissatisfaction with other banks' online banking services, we found, stemmed from the inability to talk to someone if there were questions. So in developing our program, we took good old-fashioned customer service that we are known for at the branch level and applied it to online banking via the Internet. It's what sets us apart."

Online banking is rapidly on the rise among consumers in the northeast and nationwide. Studies of the six states in the Banknorth market area show that a little less than half of all households have a computer, which is on par with national statistics. Studies have also shown that about half of all households use some form of online banking, but that in three years, those figures are expected to double.

Sign up takes less than 5 minutes

Signing up for online banking takes less than five minutes, Wood said. Customers go to their bank's web site and are invited to sign up for online banking. After filling out a simple form, within minutes they can view their account and conduct transactions.

New web sites for member banks also launched

The new online initiative launched by Banknorth this week also included newly designed web sites for the company and its eight banking affiliates. A pilot study conducted with 280 customers and employees who used and tested the new sites and the online banking program showed positive results in all areas - from navigation and ease of use to lack of clutter and lack of down time.

Security features solid

"In addition to customer service and ease of use, security and privacy were other issues we focused on in developing the online service," said Wood. "We put resources into building a secure site, from the 128-bit encrypted technology to building an entire back up system for each component in the e-commerce arena. We also set strict internal guidelines before building the system, and joined forces with technology partners that could help build and offer a secure site. We received high marks in all areas of security from top online security firms."

Banknorth Group operates banking subsidiaries in six northeastern states. In Maine, where the company is headquartered, they operate through Peoples Heritage Bank, NA; in New Hampshire through Bank of New Hampshire, NA; in Massachusetts through First Massachusetts Bank, NA; in Vermont through The Howard Bank, NA; Franklin Lamoille Bank, NA; and First Vermont Bank, NA; in New York through Evergreen Bank, NA; and in north central Connecticut through GBT, a division of First Massachusetts Bank, NA. The web site addresses of the various banks are:

Peoples Heritage Bank, http://www.peoplesheritage.com

Bank of New Hampshire, http://www.banknh.com

First Massachusetts Bank, http://www.firstmass.com

GBT, a division of First Massachusetts Bank, NA, http://www.gbtbank.com

First Vermont Bank, http://www.firstvermont.com

Franklin Lamoille Bank, http://www.franklinlamoille.com

Howard Bank, http://www.thehowardbank.com

Evergreen Bank, http://www.evergreenny.com

Customers can also access any of the above banks through the Banknorth Group corporate web site address, which is http://www.banknorth.com.

Banknorth Group also operates a variety of insurance agencies in New England as subsidiaries of Morse, Payson & Noyes, Insurance, its lead agency; a money management firm, The Stratevest Group, NA; an investment subsidiary, Heritage Investment Planning Group; and a leasing company, Banknorth Leasing. Other subsidiaries and divisions provide services in mortgage banking, asset based lending, private banking, merchant services and other financial services.

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