Creating an Advantage in the Era of E-Strategies

The Internet alters one of the fundamental laws of economics - it creates oversupply. While there was a geographic and convenience rationale for thousands of credit union charters and branches, why do we need thousands of Internet channels? All Internet delivery has the same 24/7 convenience. How does one digital loan, savings or other financial service product (e.g. insurance) distinguish its service from thousands of other choices?