eTrade 2000 Annual Report Download - page 3

marks of E*TRADE Group, Inc. or its subsidiaries in the United States. Some of these and other trademarks are registered outside the
United States.
PART I
ITEM 1. BUSINESS
E*TRADE Group, Inc. (“E*TRADE”) is a global leader in online personal financial services offering value-added investing, banking,
research and educational tools, premium customer service and a proprietary Stateless Architecture infrastructure to our customers
through services provided by our wholly-owned subsidiaries, including but not limited to, E*TRADE Securities, Inc. (“CCS”),
(“E*TRADE Securities ”), TIR (Holdings) Limited (“TIR”), E*TRADE Bank (the “Bank”), Card Capture Services, Inc., now
E*TRADE Access Inc. (“E*TRADE Access”), VERSUS Technologies, Inc. (“VERSUS”) and other international subsidiaries. We
were incorporated in California in 1982 and were reincorporated in Delaware in July 1996. Our principal corporate offices are located
at 4500 Bohannon Drive, Menlo Park, CA 94025. We offer automated order placement and e xecution, financial products and services
that can be personalized, including portfolio tracking, charting and quote applications, “real-time” market commentary and analysis,
news, professional research reports and other information services. Our products also include mutual funds, proprietary mutual funds,
bond trading, banking, automated teller machine (“ATM”) services, and access to participate in initial public offerings (“IPOs”). We
provide our services 24 hours a day, 7 days a week by means of the Internet, automated telephone service, dire ct modem access,
Internet-enabled wireless devices, and live telephone support.
During fiscal 2000, we expanded and diversified our business, executing upon our three key business strategies:
To build an efficient electronic business model
We have continued to build our technology infrastructure to increase the electronic delivery of statements, transaction confirmations,
real-time account openings, and access to our products and services through wireless platforms and content providers. In addition, we
have expanded the capabilities of our technology infrastructure through the expansion of capacity and speed of execution.
To grow global, diversified revenue streams through strategic market initiatives, globalization, and acquisitions
We have diversified our revenue streams in fiscal 2000 through the acquisitions of Telebanc FinancialCorporation (“Telebanc”), now
E*TRADE Financial Corporation (“ETFC”), the holding company ofE*TRADE Bank, and E*TRADE Access, VERSUS, and several
of our international affiliates. With the acquisitions of ETFC and E*TRADE Access, we have begun to offer banking services through
a nationwide network of ATMs. We have also positioned ourselves to grow internationally by increasing our institutional client base
worldwide and enhancing our ability to conduct cross-border trading through the acquisitions of VERSUS and several other foreign
affiliates. E*TRADE now serves over 465,000 international customers and has nine retail branded Web sites outside the United States.
To combine choice, service, product density, and personalization to provide superior, simplified financial solutions for our customers
Our asset gathering strategy has been designed to expand the value we provide to and derive from each of our customers. Through our
acquisition of Electronic Investing Corporation (“eInvesting”) in July 2000, we will enable our customers to create personalized
portfolios of securities via the Internet and trade in dollar denominated transactions. Our recent partnership with Ernst & Young, LLP
(“E&Y”) will give our customers access to electronic advisory services and E&Y’ network of financial planners through a new
company, Bright Future, Inc., conducting business as eAdvisor. Through strategic alliances with State Street Bank and Wit Soundview
Group, Inc. (“Wit”), we will expand our asset management services by providing customers access to tax-advantaged college savings
products, access to participation in IPOs, and Wit’ s world class research tools. Our cross-selling ability between brokerage, banking,
global and institutional, and asset gathering customers, will enable us to diversify revenue by increasing services and products to our
existing customers whileminimizing costs to acquire new accounts. Also, through the acquisition of PrivateAccounts, Inc.
(“PrivateAccounts”) in October 2000, we expect to further expand our product portfolio to offer separate account management
services for those investors who are looking for private management of their money.
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In January 2000, we completed our acquisition of Telebanc, now ETFC. ETFC is the holding company of E*TRADE Bank, formerly
Telebank, an Internet-based, federally chartered savings bank. We issued approximately 35.7 million shares of our common stock in
connection with the acquisition. We pursued this acquisition primarily in order to enable us to become a competitive and immediate
participant in the online banking market, thereby broadening our product portfolio and creating a leading end-to-end, “one-stop-shop”
2002. EDGAR Online, Inc.