ABSTRACT

Banks are increasingly focused on the profitability of their customers. Profitability studies indicate that the most profitable relationships, both personal and business, are those with customers who are looking for online services. There are differences between providing customers electronic access via a private network vs. an open network such as the Internet. Private network access provides a direct connection between a customer’s access device, such as touch-tone telephone or PC, and the financial institution. Security concerns are slowly diminishing as security devices called routers and fire walls make the Internet a safer place to conduct business. Once the financial institution has decided to pursue electronic commerce options, the next step will be to involve individuals from the various sectors of the financial institution. One of the keys to entering e-commerce successfully is selecting a good technology partner. The technology partner should be rooted in the knowledge of electronic access.