The FDIC is hosting a seminar tomorrow in New York (which will also be webcast) on this subject.

Chris Weeldreyer writes how Internet banks haven't changed the world -- at least not substantially.

Customers don't care about the latest technology if it doesn't satisfy their basic goals. The Internet-only banks provide a good cautionary tale here. Among many other customer service gaffes, many of these banks have failed largely because they didn't provide a good way to accept deposits or dispense cash. It seems obvious in hindsight, but designing a bank that didn't satisfy the basic need for depositing and withdrawing money was doomed to failure. How can you avoid making expensive mistakes like these?