than 1% have used the Internet bank account to make an electronic bill payment (McPherson, 2001). It's easy to see that there is a huge potential for savings if the banking industry can get at least half of its customers to utilize these on-line tools.So how are banks trying to sell and market the service? The banking industry is trying to promote these new services to a younger generation that is already used to buying and selling on-line. The Internet era is very new and the older, traditional banking customers have very little experience surfing the web. Banks are offering free on-line account statements and offering three month's free electronic bill pay for customers who would like to try out the service. In addition, the banking industry is aggressively marketing the new services in each month's paper statement by inserting informational flyers. These flyers promote their service by showing pictures of a family sitting around the computer, viewing their on-line statement for their Christmas savings balance. The banking industry is aggressively trying to promote the service with the long-term goal of cutting huge overhead costs. Also, the banking industry is starting to implement fees if you perform a certain number of transactions per month inside the bank. Finally, they are promoting e-business accounts that charge zero dollars a month if you never perform a transaction inside the bank and use their electronic bill payment service on a monthly basis.Many businesses today are performing B2B transactions with their banks. The problem is approximately 70% of all the B2B transactions result in creating a paper check (McPherson, 2001). There are some savings, but there are still a lot of costs that the bank must absorb to complete the transaction. This is a demonstration of how banks are working with the business community but are running into roadblocks because of the lack of systems support. Many of the businesses that ...
