SPECIAL REPORT: TECHNOLOGY IN BANKING

COVER STORY:

Technology spending by banks again outpaced inflation this year. But when it comes to understanding banks and technology, averages don't tell the story. 4A

OUTSOURCING:

It's time for the conventional wisdom to change: Community banks are not more likely than large banks to farm out essential

operations. 6A

WHOLESALE BANKING:

On-line corporate banking is getting easier and cheaper for more small banks and

businesses. 8A

RETAIL BANKING:

The Internet now ranks second only to nonbank competition among critical issues facing the industry, bankers say. 10A

THE BACK-OFFICE:

Telecommunications has emerged as one of the fastest-growing items on U.S. bank technology budgets. 14A

RETAIL BANKING:

Bankers' faith in the power of the telephone apparently has no bounds. 16A