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<< If EBanking stays on the current growth pace, I will need to revise price target upwards. :-) I expect the EBanking to lower costs and improve profits by the
end of this year. I do not expect it to increase revenues, but it could. >>

Easy to say and I here it all the time but consider what you are saying. True, brick and mortar are expensive to build and maintain but labor is relatively cheap (sorry to all the tellers and CSM's out there). Have you looked at what companies are paying and providing in incentives to get/keep programmers to create and support these "cheep" electronic alternatives to brick and mortar? Why stay at BAC when you could get into a start-up IPO and make millions? This doesn't even get into subcontracting charges due to lack of expertise (see previous point) or hardware and software fees. I think people need to stop looking at technology as a cost reducer and start thinking of it more in terms of being an enhancer of services provided. The better and more reliable the service, the more likely BAC is to get more business from new and existing customers. If you looked at the budget of any company in this situation, you will most likely find that the cost reductions are coming from the more traditional service groups as well as selling off the less profitable LOB's. I doubt you will see cuts in the new technology lines.

Just my opinion,
-D
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