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Non-Tech : NetBank(NTBK)-formerly Atlanta Internet Bank
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To: AugustWest who wrote (1588)4/18/1999 5:08:00 PM
From: Les White  Read Replies (1) of 2414
 
Low barriers to entry?

I think the CNBC gal was a little flippant with her proclamations.

On the surface it would seem easy to start up an internet bank but there are many more barriers to entry than meet they eye. For one thing it takes a little more than a year to get a charter approved for an internet bank, capital requirements are higher, and if you're going to do it right you've got to launch with 50 state compliant products. That's no small task.

In fact, Netbank never did get their own charter, they had to buy another bank to get one.

And of course there are lots of software and vendor integration issues to work out. The big pieces are there but there's a ton of assembly required.

Netbank has a clear lead if only for the short term. But they can do a lot with their lead. AOL did.

Les
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