Internet banking is no panacea for the banker or the customer. After all, it is just another channel of delivery for banks. And it is up to the bank concerned to decide whether it needs that extra channel. Internet banking is transaction-efficient and cost-effective, alright.

But, it is also expensive to install. Banks going full steam ahead with their Net banking plans and investing substantial sums in technology claim that they know well what they are doing and why.

It is time these banks look at their profiles, who they are. They need to bone up on customer profiles. There is no point in jumping on to the Net banking bandwagon just for the heck of it.

Banking is all about making money, which banks can still do in myriad of ways in a country as vast and diverse as India. And there are bank customers who do not need Net banking. So, if a bank still wants to get into Net banking, let the banker find a niche area, identify areas where it has core competence and offer Internet banking services in those areas.

Even within Internet banking, there are various business models. Online banks need to take to a business model that suits their temperament, their business focus and their online strategies.

For instance, an online bank can act as a cash manager for small and medium enterprises (SMEs). Consider the success story of community banks in the United States of America.

Not only have they been able to attract new customers and lure customers away from bigger players, but they have also been able to retain those customers.