Financial institution management should choose the level of e-banking services provided to various customer segments based on customer needs and the institution's risk assessment considerations. Institutions should reach this decision through a board-approved, e-banking strategy that considers factors such as customer demand, competition, expertise, implementation expense, maintenance costs, and capital support. Some institutions may choose not to provide e-banking services or to limit e-banking services to an informational website. Financial institutions should periodically re-evaluate this decision to ensure it remains appropriate for the institution's overall business strategy. Institutions may define success in many ways including growth in market share, expanding customer relationships, expense reduction, or new revenue generation. If the financial institution determines that a transactional website is appropriate, the next decision is the range of products and services to make available electronically to its customers.OTS-regulated institutions must send a notice in conformance with 12 CFR 555, "Electronic Operations" prior to establishing a transactional website. To deliver those products and services, the financial institution may have more than one website or multiple pages within a website for various business lines.
Board and Management Oversight
Cost-Benefit Analysis and Risk Assessment