Class discussion needs to be 3 to 5 sentences

Technology has
allowed banks to conduct transactions over the internet, also known as
eBanking, and to more easily merge into larger banks.Traditionally,
bankers and their customers dealt in face-to-face transactions that
allowed the assessment of trust on the basis of physically observed
information.

While
some banks have resisted change due to the traditional personal
relationships they have had with customers, electronic commerce
dramatically reduces transaction costs, use of paper, and the need for
personnel to deal with customers face-to-face.The recent financial
crisis in the banking industry required billions in government bailouts
to banks considered “too big to fail.” Some have argued that the loss of
smaller banks with personal connections to customers and local business
operations led to the crisis.

• Do you think that eBanking’s efficiencies are worth the reduced personal contact with banks and work force reductions?
• Do you think that
  there is a connection between the demise of the local bank and the
  banking crisis? If so, what are the implications for the future?