Banks Move Slowly Toward Electronic Billing
American Banker (10/12/00) Vol. 104, No. 41 p.16A; Quinn, Lawrence Richter

The growing business-to-business online market has frightened many financial institutions that are afraid of losing customer contact and aggravating sales personnel that work on commission. However, the new market can provide banks with new revenue and opportunities. Through online payments, billing, credit and loan approvals, and the leasing of bigger machinery and equipment, banks can potentially increase their revenue. By developing links with business accounting systems, banks will be able to reduce their own costs and increase convenience for their customers. However, treasurers do not want to lose their "float period" between the time they make a purchase and the time the bill arrives. In addition, banks have to make sure that security is provided to those businesses that conduct transactions over the Internet. Without security measures in place, businesses will be reluctant to engage in online transactions no matter how convenient they are.


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