Each bank is dealing with the advent of on-line banking in its own way. Some are encouraging on-line banking, some are discouraging traditional banking, and some are adopting a wait-and-see attitude.
For example, Citizens Financial Corp., is spending $20 million on their Millennium Project. The project includes renovations, increased staff, and greeters. "Face-to-face contact is still important to a certain segment of the banking public. We are targeting that segment," says Arlene Fortunato, senior vice president and spokeswoman for Citizens Bank of Massachusetts.
Banks do recognize that they aren't doing anything that hasn't been done beforeóand with success. They are employing time-tested methods of letting their customers know they are important, which is something banks aren't exactly known for. "It's really emulating what real retail services do," says Mary Lynn Lenz, director of retail marketing for Citizens Bank of Massachusetts. "It's not a new way to deliver sales and services to the customer, but Citizens is putting its stamp on it."
Not all banks see the benefits of a project such as this, though. In fact, Fleet Financial Group recently announced they will charge customers who have signed up for electronic banking $2 for each time they use a teller. While this may seem negative, according to Ellen Molle, assistant vice president and spokeswoman for Fleet, the move is not to penalize customers but to educate them about their options. "Based on our research," says Molle, " if we make our customers aware of the different access points to Fleet, it is possible that as much as 10 percent of our customers will use them."
BankBoston Corp., is doing something similar, but on a more positive note. Instead of charging more for using a teller, they are charging less for using electronic services. For example, a service that costs $6 per month may cost $3 per month if the customer uses a PC to bank on-line. According to Bruce Spitzer, spokesman for BankBoston, "Our basic method of operation is to let the customers choose."
It seems banks are realizing the importance of on-line banking and the potential benefits they can realize if their customers use it. The distinctions lie in the differing methods banks are using to encourage on-line banking. How a bank charges for on-line banking and in-person banking seems to reflect whether the bank believes the consumer or the bank should choose how the customer banks.
