Internet banking is the future. Consumer preferences and mobile payment technology are rapidly changing, creating an opening for entrepreneurial firms to rethink what constitutes a bank. While stodgy institutions with marble pillars will remain on the scene for quite a while, the low-cost distribution system that internet banks enjoy will allow them to run circles around the competition.
So goes the bull case for internet banking, which I believe. The problem is that there can be a wide discrepancy between macro-level stories about industrial change and the ability of a particular business to execute on a big idea. As I argue elsewhere, BofI holdings (NASDAQ:BOFI) has executed perfectly, rapidly growing its deposit base and maintaining high credit...
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