Banks Put Cash Into Their Web Sites And Add Free Services Financial companies still striving to perfect doing business online.(A)

Byline: BRIAN DEAGON

In 1995, as the Internet emerged, Bank of America Corp. put up billboards in California that displayed only its Web address in large letters.

As the company and others soon learned, it's not that easy to get people to use your Web site.

Many banks, traditional and online-only, have found it takes years to develop a winning Web strategy. Despite the slowdown in tech spending overall, Gomez Inc. says a "significant number" of the 30 banks on the Web that the researcher tracks completed site redesigns in the third quarter.

"Banks of every size are making enhancements," said Gomez analyst Moriah Campbell-Holt. "Banks are re-evaluating the way they promote and price online banking and bill payment. Several are offering incentives to start paying bills online."

Despite the problems getting untracked, Internet banking continues to grow. About 26 million U.S. households used some kind of online banking service in the third quarter, up from 7 million three years ago, says the Online Banking Report newsletter.

Analysts say online banking could skyrocket if banks can perfect their Web sites. They are getting better, says Larry Freed, chief executive at ForeSee Results. But he says many still lag, as "consumer expectations continue to rise."