WSU Podcast: Online banking grows, but some consumers still hesistant
Sep 17, 2008 4:24 PM | Print

This WSU Newsline Podcast is available at See transcript below.

You're listening to the podcast edition of the Wichita State University audio newsline. Learn more about WSU — the home of Thinkers, Doers, Movers and Shockers — on the Web at

The number of U.S. households banking online continues to grow. Jupiter Research projects the number of households banking online to jump from 29.3 million in 2003 to 56 million this year, and the percentage of those paying bills online to increase from 50 percent in 2003 to 85 percent in 2008. Even so, Rick LeCompte, a personal finance expert at Wichita State University, says financial institutions are struggling to balance the needs of customers. 

LeCompte: "Financial institution firms are struggling to balance the needs of customers versus the cost they incur to provide Internet-type delivery of banking services."

LeCompte says financial institutions spend a lot of money to provide customers with security.

LeCompte: "Financial institutions expend tremendous amounts of funds and energy in order to provide their customers with security. They have to weigh this against the costs that they incur and also the benefits to their customers and to the institution itself."

And banks continue to encourage customers to give online banking a try.

LeCompte: "Banks encourage their customers to use the Internet in a variety of ways. Some are even (offering) cash reimbursements for setting up bill pay or setting up additional online accounts. They may also send out postal mailings in order to get customers to sign on for rewards programs and other types of benefits that the bank may be able to offer."

LeCompte explains why banks want you to do business online.

LeCompte: "The primary reason banks want you to do business online is that it reduces their cost. This can have the benefit of increasing their profits. It can also have a benefit of reducing the rate they charge on loans, and also increase the rates they're able to pay on deposits."

One of the most attractive aspects of online banking is online bill paying. With a few clicks, you can pay your bills, check your balances and see what has cleared. But LeCompte says not all consumers are quick to join the growing number of people using online banking.

LeCompte: "A primary reason people don't switch to Internet banking is that they may not see a benefit to them. There can also be privacy concerns. There can also be the fact that they have unreliable Internet service, and maybe it's just too much difficulty for them to change."

LeCompte says while online banking continues to grow in popularity, brick and mortar banks won't disappear anytime soon.

LeCompte: "It's unlikely that brick and mortar locations will go away in the near future. There are many transactions that need to be performed in person. Also, some who will like that personal touch of walking in and talking to the banker, and banks also look at that as a different delivery mechanism, in addition to their Internet."

Thanks for listening. Until next time, this is Joe Kleinsasser for Wichita State University.

Created on Sep 17, 2008 4:24 PM; Last modified on Nov 19, 2008 11:44 AM
WSU makes case for special funding priorities
Revisions made to parking plan
High School Guest Program offering $500 scholarships
Collaboration to benefit WSU students
WSU camps introduce youth to engineering
WSU School of Nursing benefits from grant
Multi-disciplinary field study
WSU Foundation finishes strong year
WSU director to speak on racial profiling
WSU research uses all types of people
Shuttle system adds new stops
Permits to be required to park on main campus
WSU names new director of AEGD program
WSU reorganizes admin structure
WSU, WuShock logo at IndyCar Series
WSU hosting ACT Prep Workshop
New Health Professions dean honored
Wichita State welcomes FarmHouse fraternity to campus
WSU grad overcame tragedy to earn her degree
Flint Hills Media Project covers Butler County
WSU to host forums for returning adults
'Forty Years/Forty Stories' at WSU museum
© 1995-2014 Wichita State University. All rights reserved.
Valid HTML 401