ALLSTATE LAUNCHES BANKING SERVICES

Illinois-based Allstate, through its Allstate Financial Group unit, has become the latest US insurer to launch a banking affiliate. The new Allstate Bank is offering savings and checking accounts, home mortgages, certificates of deposit and other services. Account and rate information is available nationally through the bank's web site, via a freephone call centre, at ATMs and by post. The products and services are also available in California through the group's 2,000 local insurance agents. Allstate chief executive Kevin Slawin said that the group intended to convert its millions of insurance customers into banking customers by offering competitive rates and expanding to agency offices across the US. In 1998, Allstate rival State Farm became the first US carrier to launch a banking unit, following a raft of US financial services reforms.