There are different factors at work in the US and in Europe. In the US, several dozen banks now offer Net-based retail banking. It is not hard to see however, why banks have done so little to accelerate change. Second, banks will find that the revenue from operating customers' current accounts has to be shared with outside institutions - telephone companies, Net service providers, and, crucially the owners of the personal finance software on the PCs that banking services talk to. Although the banking industry as a whole may have been successful in delaying the advent of threatening changes, the chance always remains for a powerful new entrant, unencumbered by the weight of an existing infrastructure, to offer an online banking service to the mass market.
Likely candidates are everywhere.
American Express, already listed on Intuit's Quicken Financial Network as offering banking services, has millions of card-holders who could become customers, and can identify those who already use the Net from its billing records. Fidelity, the US mutual-fund giant, has a formidable brand name and reputation for customer service. In the move to electronic banking, first movers will have a clear advantage, because they will be able to bag the early-adopting customers.