Cost savings benefit banks that provide online services and industry officials say that electronic banking will shrink operating costs over a period of time. Bill Veeneman, vice president and manager of online services for U.S. Bank , said that once a bank makes the initial investment to set up an online system, costs usually do not increase. While most banks are jumping on the electronic bandwagon, some smaller banks see no need to join in immediately. Tom Meuser, chairman and chief executive of El Dorado Savings Bank in Placerville, Calif., told The Sacramento Bee that he does not think online services are required to retain customers. He said they are more hype than reality, and that large banks are simply trying to make customers believe that they need to bank electronically.
Security is a major concern for consumers and banks.
Ian Rubin, a technology analyst, said that people need to be assured that hackers cannot access their account and steal money. In addition, he said that some people hesitate to bank online because they are afraid that they might ruin their account if they press a wrong button. Analysts say that many bank customers are quite content to physically go to a bank and interact with a human being. I don't want to risk anything with my accounts. Institutions such as Bank of America , Bank One , Citibank , Key Bank and Wells Fargo provide 128-bit encryption.