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Online help from the CIT Group Inc.

In the USA the CIT Group Inc. the financial commercial lender run by John A.
Thain has opened up an online funding part of the branch to provide more funding.

CIT Group Inc has now decided to offer certificates of deposits online. The company based in New York city announced this decision in a statement made today. During 2012 the CIT Group inc hopes to offer checking, savings, online bill payment facilities and mobile banking.

CIT is reversing its strategy of shrinking the balance sheet after exiting bankruptcy almost two years ago. The financial lender will look to use Internet deposits to help fund its asset growth, Thain said last month.

“The online bank will help us meet the financing needs of our small-business and middle-market clients,” Thain said today in the statement.  “The launch of CIT Bank online is another important step in our efforts to diversify our funding sources into stable, low-cost deposit products.”

CIT Group Inc will “likely at some point” acquire branches to help fund its asset growth, Thain said in September. Regulators encourage deposit gathering at brick-and-mortar locations, he said at the time. The development of Internet deposit-taking is also a “significant positive” for regulators, he said.

Providing asset based funding not only allows CIT Group Inc to grow but will provide a range of companies with the flexible funding they may not have realised was available. Asset Based Funding allows companies to use their own money tied up in invoices which are to be sent out to clients and paid. This reduces the amount of money that businesses may have taken out in an business loan and the cost of doing such a thing is minimum compared to loans and interest.

CIT Group Inc is still required to submit to tighter supervision by the Federal Reserve Bank if New York, which signed a written agreement with the lender in August 2009.

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