*Loan,banking and credit>>>online banking

How do banks benefit by allowing online banking?

I need this information for an assignment I'm working on.

Firstly

It cuts down on overheads such as

All those local branches - rent, electricity, staff.
Centralised banking - only one building, less rent bills etc
Economies of scale.
Quicker treatment of customers.

Geographical mobility means you can move your office to a cheaper country - Central America, India etc - although the level of complaints from customers this generates has lead some companies to move back to the UK.

Plus they can bombard you with advertising when you go online.

reduce infrastructure cost - less tellers and teller stations per 1000 customers (and it is a marketplace requirement )
Less paper, less mailing, less work force and resources needed, better customer satisfaction.
Accessability... banks know that if you can access them your account from anywhere you are more likely to take advantage of services offered
adding the service makes more people join.
Less Need for employees, more productivity, and instant transactions without the manual work.