Banks are expanding their Internet Web sites to offer information to small-business customers and take loan applications on-line.
Crestar Financial Corp., Richmond, Va., has been taking loan applications over the Internet for nine months and this spring plans to let customers get their account information on-line. But Alexander B. Berry, Crestar executive vice president, said few customers have applied for loans on-line.
"It's slow yet," Mr. Berry said. "I firmly believe it will be used."
Other bankers echoed Mr. Berry's sentiment. They plan to beef up their Internet offerings this year but do not expect business owners to rush on- line.
"We all have expectations for PC banking, but I don't think it has jelled yet," said Jennifer Calenda, senior vice president and director of small-business banking at Summit Bancorp in New Jersey.
Banks do not get much traffic on their Web sites because they do not offer enough useful information, said David Dunne, a partner in F8Media a New York company that develops software to enhance bank Web sites.
"A lot of banks have spent a lot of money to put up Web sites and found that people haven't come," Mr. Dunne said. "Banks need to give people a compelling reason to look at those sites."
If banks want to appeal to small-business customers, Mr. Dunne said, the Web sites should include current interest rates and loan fees and tools such as spreadsheets to help companies develop profit and loss statements.
A new Consumer Bankers Association study of 35 large banks said that 88% have Web sites. Almost all these banks use their Web sites to offer general product information, and 21% take small-business loan applications on-line.
A few banking companies, such as Banc One Corp., post work sheets on their Web sites that let customers evaluate their finances and determine what type of loan fits their needs.
NationsBank Corp.'s Web site includes newsletter-style information about new retirement plans, and BankBoston Corp.'s site includes a transcript of an executive answering questions from business owners during a chat session.
Norwest Corp. plans to expand its Web page by March to include tools for business owners to review their cash-flow needs or to determine how much they can afford to borrow. Entrepreneurs will also be able to e-mail bankers and request a telephone call back.
"They can, at any point, contact a center staffed with bankers," said James Schmitt, Norwest director of business banking management. "It's going to be very exciting."
Thrifts are getting started, too. Glendale Federal Bank in California and Bank Atlantic Bancorp., a $2.6 billion-asset thrift in Fort Lauderdale, Fla., will begin taking loan applications on-line by yearend.
Steven Hickman, Bank Atlantic executive vice president, said business owners' use of the Internet will increase slowly as customers become confident that their financial information is secure.
"There is still a lot of skepticism about how much information people want to share about themselves on-line," he said.
