Retail banks are realizing that Internet banking is not living up to the hype that surrounded it a few years ago. At that time, analysts predicted that demand would follow the trends in general Internet usage and grow to hundreds of millions of users by the middle of this decade. Some brave entrepreneurs were even betting that the age of the branch-based deposit institution was over, and that upstart "Internet-only" banks would be able to capitalize on hot new technology to steal all the customers. Yet adoption rates are low, and customer interest is flagging. Why? Online banking is a good example of how bricks-and-mortar institutions can stumble when they try to solve new economy problems with old world approaches.