The bank has the ability to increase revenue by generating user and transaction fees for the use of a bill payment product and has the option of charging an account access fee for the use of the online system. Online banking provides an excellent promotional opportunity to generate revenue by helping the bank to cross-sell products such as credit cards, loans, certificate of deposits, and other financial services. In addition to making money, the bank can save money with an Internet banking system. Online banking can actually decrease operating costs by reducing the daily reproduction and distribution of paper-drawn transactions and delivering and processing statements for accounts, credit cards, and bills. Using the Internet to perform transactions greatly reduces the cost to the bank.
Internet banking improves productivity as well.
Bank representatives are able to process data more quickly and efficiently, track account activity with automated reports, help customers achieve daily tasks via the Internet, and reduce time spent handling service problems. State National Bank in Big Spring, TX implemented Internet banking in January of 1997. Since that time they have seen a dramatic reduction in the number of customer service calls. Robert Buckner, Senior Vice President of State National indicates that they have had an overall decrease in operating costs with the implementation of the Internet banking service they provide to their customers. Internet banking also offers the bank an exceptional marketing and competitive tool.