Many Internet banks have discovered that they are using any savings in “brick and mortar” operating costs to pay “bounties”, or fees, to other Internet sites that refer new customers and to operate call centers to field the customer inquiries that invariably arise.
Another lesson from the history of technology in banking is that so many of the costs in banking are shared across products, and even across customers. Therefore, an investment that might have a positive impact on one customer base or product may not have the desired impact on the overall cost base. I believe that the early history of ATMs illustrates this lesson.