What's now called Internet banking only means customers can check account information, make transfers, and pay bills. TeleBanc, as its name indicates, conducts business by phone as well as online. Still, however defined, Net banking is promising. The problem is the payoff. Cost-saving technology is an old story at banks.
ATMs are cheaper than tellers, and so are telephone centers.
But customers want it all. Even now, many banks discourage customers from using Net services by charging fees. Branchless banks, by contrast, have taken advantage of lower Net costs by offering higher deposit rates. But again, there is a catch. Internet banks have yet to show they can find highly profitable uses for this money.