LJWorld.com

Online banking continues to gain popularity in Lawrence and nationwide, as the industry works to balance high technology with demands for in-person customer service.

And as area banks continually upgrade their Internet offerings, they're starting to show interest in the next generation of such service: mobile banking, offering customers the ability to securely and conveniently transfer funds, pay bills and check balances using wireless phones or other handheld devices.

Central National Bank this month signed a contract for a new mobile-banking system, and looks to get it running for use on customers' cell phones in the very near future.

"We want to be an early adopter of the technology because we believe it's here to stay," said Rob Gillespie, a bank vice president. "I doubt people will sit in the bank parking lot and do their banking on the phone. But if they're on their way to the airport and remember they need to transfer some funds, and they need access to their checking account because they're on vacation or business, this is a great way to do it."

The new system, called goDough, is a Web-based application that allows customers to perform all functions available through the bank's online offerings, which already are used by 35 percent of Central National's customers. The goDough system adapts the functions for use through the small screen of a phone.

'A natural extension'

Jack Henry & Associates, based in Monett, Mo., developed goDough to add to the company's pervasive computer systems and ATM/debit card systems for processing transactions already in use worldwide.

"Mobile banking is the next logical financial service, when you consider approximately 70 million Americans own cell phones, and that the advancing functionality these phones provide has elevated them from communication tools to personal management devices," said Tony Wormington, Jack Henry president. "Mobile banking is a natural extension."

This past week, AT&T launched a mobile banking platform for customers of Wachovia Bank and SunTrust Bank, following up on earlier adoption from BancorpSouth Inc.

About 46 million households currently bank online, according to Celent, a research and consulting firm focused on the application of information technology in the global financial services industry. The firm expects that 17 million households will be using mobile banking for similar functions by 2010.

'Mainstream' approach

"This is the year that mobile banking is moving into the mainstream," said Red Gillen, a senior analyst at Celent.

Gillespie figures that about 40 percent of Central National customers already bank online. For Commerce Bank, the rate is more than 60 percent.

Customers "want what they want, when they want it," said Mark Heider, president for Commerce locations in Lawrence.

Capitol Federal Savings, with more than 300,000 accounts, has more than 65,000 customers using the bank's online services, said Barbara Carswell, the bank's first vice president and regional coordinator.

Mobile banking will be the next step, she said, but no firm timeline has been established.

"When we go to market with a product, we want to know that it is tested, that it has integrity of quality and that it will actually add value for the customer," Carswell said. "Once we know that the technology is up to those standards, we will adopt it. That's what a good business does."

Testing the waters

University National Bank started its online banking system within the past few years, and got into online bill payments during the past six months, said Debra Black, senior vice president and cashier.

Mobile banking remains on the bank's radar.

"We know it's out there, but we have not jumped on board yet," she said. "We want to make sure it's tried and tested before we jump in."

Peoples Bank expects about a third of its customers to be using its online services in 2008, up from about 25 percent this year, said Warner Lewis, a spokesman for the Lawrence-based bank. While Peoples attracts customers with its "high-quality, high-touch" services, they continue to demand access to high-technology options.

"We have to offer a competitive online product, because that's what people demand," Lewis said.

Can't call for cash

At Douglas County Bank, about 30 percent of customers use online services and the rate continues to grow, said Ted Haggart, bank president. Mobile banking systems will be considered by the bank in the future.

For now, people can check account balances, transfer funds and view canceled checks from a computer at home or at work. And ATMs continue to provide convenience that computers can't offer, Haggart said, emphasizing that a customer still can't make a cash withdrawal from home - at least not yet.

Technology, it seems, does have limits.

"The printers aren't that good," he said with a laugh.