Consider all the internet banking institutions available for business.  Some are set up by large corporations and some are small companies.  Although you may never want to set up an internet banking operation yourself, it is enlightening to take a look at the process.

The first order of business is to gather a group of at least five people to organize the internet banking company.  These people will be on the board of directors, and one of them should be the CEO of the bank.  The five or more people will be intensely involved together to form working procedures of the bank.

After the group is brought together, they must choose a name for their internet banking company.  They have to be very picky when it comes to their name.  They will want the name to be easy to remember.  It should be catchy and have a nice ring to it.

Another consideration with the name is making it original.  Getting a name that can also be used as a domain name is preferable.  Also, the name must pass strict guidelines as to its similarity to other banks and internet banking institutions   if it is too similar, the bank founders will not be able to obtain a trademark for it.

To get a name trademarked, they simply have to go to the US Patent and Trademark Office.  There is just one form to fill out.  They submit it with a fee and wait for approval.  Sometimes, they have to make a case for their trademarked name.  This is done through emails.  If all goes well, the internet banking name will soon be theirs.

The group of investors can now go to web-hosting services and set up a website that can be accessed publicly.  To make the website, professionals are needed.  The website is, as far as the consumer is concerned, the heart of the internet banking business.

The professional website designer should design an internet banking site with the highest level of security.  This includes such features as 128-bit encryption, secure socket layering, and adequate firewalls.

For the consumer’s preference in use, there are other considerations in making an internet banking website as well.  It should be eye-catching to bring in the most customers.  It should also be easy to get around the website.  Another consideration is copyright infringement.  It must be ascertained that nothing is directly copied onto the website.

The group now forms its charter.  It must apply for an internet banking charter through the Office of the Comptroller of Currency (OCC).  This is a lengthy process and involves a huge amount of paperwork and information.

Another way is to take over stock in an existing bank and put in a change of charter with the OCC.  In any case, the OCC will give the board of directors advice on how to best submit their application for the charter of their internet banking operation.

The OCC evaluates all the information the internet banking partners have put together about their financial situation and their proposed banking policies.  Then, if the OCC grants a charter, the bank is ready to open its virtual doors.

Much research was done on internet banking even before it was started.  The research continues to this day, with more and more participants involved.  As people use internet banking more, it gives researchers more reasons and subjects to study.

One study showed the devastation of identity theft on individuals.  They had trouble getting jobs, loans, and insurance, for example.  They could not conduct business in a bank, not even internet banking.  Some ended up in very difficult positions.

The study suggested that banks, including internet banking institutions, would do well to proclaim themselves as the champions of identity protection.  This would help them by limiting their losses.  Besides this, they could charge a fee for the service.

Another study evaluated how people felt about the security of their internet banking transactions.  78% of them stated that they would like some kind of verification of their identities to be carried out at certain times.  This, they thought, should be done at the moment that unusual transactions were being done on their internet banking accounts.

People seem to be getting more comfortable with internet banking every year.  One study showed an increase in internet banking of 9.5% between 2006 and 2007.  Another study predicts that 76% of the households who have an internet hookup in the year 2011 will also do internet banking.

It is true that internet banking and online bill paying are predicted to continue their rise in popularity.  However, viewing bills electronically is expected to decline.  Payment by other means besides internet banking is also expected to go down, including bill paying by phone.

Some studies have made use of surveys that ask people if they want alerts for their internet banking accounts, and if so, what kind.  It turns out that consumers do want alerts for their accounts.  What is more, they want a lot of alerts for a variety of occurrences.

They want to be alerted when a bill is going to be paid and when it has been paid.  They want to be able to set an alert to tell them when a certain check has cleared.  They want to be alerted when there is any inkling of fraud.  This one, of course, is an especially good idea.

The demographics of internet banking have also been studied.  It seems that the middle income people who use internet banking are afraid they will lose control without better records.  Anything that can be done to give them better records will make them more comfortable to use online banking.

The lower income people have many reasons for not using internet banking.  The over-$100,000 group seems to use it more.  They also tend to use it without fear.  This may be because they are in less danger of running out of money and overdrawing their account.

A new field of study is social networking.  This is a concept that involves the use of internet banking by networks of people.  They are usually in their 30′s and 40′s.  They put their money together to make deals with financial organizations.  Study is geared towards finding out how this will affect internet banking for these people, and for all internet banking customers.

Internet banking research is going on, and will continue to go on as long as online banking exists.  The banks want to know how to stay profitable.  Hopefully, they are also interested in how to better service their customers.

Is the nature of business forcing customers to use internet banking?  Or, is there something in it for the customers?  Indeed there are many advantages to doing internet banking.

1.  It is easy to open an internet banking account.  You sit, in the comfort of your home or office, and type in your answers to a few questions.  You set up the security measures that will be used to access your account, like usernames, passwords, etc.  Then, all you need to do is print off and sign a form to send in to complete the process.

2.  Internet banking is cheaper.  With the advantage of having no physical structure to keep up, virtual banks have low overhead.  They can afford to cut you a break by offering higher interest rates on your savings.  They will also offer lower overdraft fees.  Even banks that are backed by physical buildings encourage online banking with free bill paying services.

3.  Internet banking allows you to compare deals easily.  You can go to different online banks and find out their interest rates and policies about checking and savings accounts.  You can learn what credit cards they offer, and at what rates.  You can compare loan terms.  You can check with the FDIC to check the banks’ credibility.

4.  Internet banking customers can watch their daily balances.  By going on the internet to the bank’s website you can look at what is going on in your account any day or time.  You can check your balance.  You can find out if a particular check has cleared your account or see when automatic deposits are made.  All these services make check bouncing nearly a thing of the past.

5.  Your monthly statement can be reconciled by using your computer.  You can download your bank data into a software program like Quicken or Microsoft Money.  Then, with a few clicks of your mouse you can square up your account.  Through your internet banking account, you can even see copies of checks you have written.

6.  You have a better chance to catch fraudulent use if you have an internet banking account.  When you check your debits and deposits, you will most likely notice if something is there that you did not do.  If someone withdraws money from your account, you will know it as soon as you log on and look over your account.  Then, you can work on correcting the situation long before you would even notice it with conventional banking.

7.  Internet banking is much more convenient than traditional banking.  You do not have to wait for the bank to open its doors.  You do not have to drive to get there.  If you are using internet banking for your office, you will not have to waste valuable time going to the bank.  You can manage your funds anywhere, any time.

Internet banking is growing for a reason.  People are getting accustomed to transacting business over the internet.  They are enjoying the convenience and the control over their money that internet banking gives them.