(June 12 – 10:00 ET) – Royal Bank is joining Toronto-based Baldhead Systems Inc. in a joint venture to develop secure end-to-end encrypted wireless banking and brokerage services. Royal will own 20% of the new firm, Sona Innovations Inc., with Baldhead Systems holding the remainder. Financial terms of the agreement were not disclosed.

Sona has developed a service to execute wireless banking and brokerage transactions. It will initially be launched on 3Com Palm devices that are connected to digital cell phones for Royal Bank and Action Direct customers later this year. The service will work with any provider of PCS wireless service.

Sona is also selling its technology to other financial institutions interested in providing similar services. “This investment aligns with our strategy of extending our Internet services and properties to new devices and providing consumers with greater choice and convenience,” explains Tom Wolf, senior vice-president, e-business at Royal. “More importantly, Sona Innovations’ approach to wireless service met our customers’ demands for a secure end-to-end system that ensures passwords are encrypted at all times.”
-IE Staff