Net Value for Business.

• Position: Banks find internet banking for business customers is more profitable than internet services for consumers - Brief Article

Many banks are finding that on the Internet, the business customer can be more profitable than the retail consumer. Steve Cocheo, author of The Community Bank Competitiveness Survey, points to charges associated with business deposits that aren't collected from consumers. He also feels that the evolution of Internet banking for business may be more advanced.

Dorcas Shaktman, vice president and group product manager of Manufacturers Bank of California, says it's true, too, that the corporate marketplace has completely turned around in the past 18 months. While Web products were once pushed by vendors and rejected, now they're in high demand. "That's something we're not seeing on the consumer side."

"The acceptance of Web-based products in the corporate marketplace is strong," explains Shaktman, of the middle market businesses they serve. "It's truly an idea whose time has come. Corporate offices are encouraging Internet use to minimize costs and maximize efficiency in their own operations."

Customers and prospects were on a waiting list for the bank's Internet cash management product. But they didn't wait long. Manufacturers Bank rolled out the product in August of last year, after only six months in development, including beta testing. Shaktman cites two reasons for the speed:

Continuity. Working with the same vendor for several products allows them to interface many pieces of their electronic environment.

Size. Being a smaller bank gives them the advantage of...