U.S. Regulators Grant Charter to Internet Bank

The first Internet bank to be granted a national charter by federal regulators plans to open its doors next month.

CompuBank National Assn. in Houston is the first Internet bank with no physical branch offices to be chartered by the U.S. Office of Comptroller of the Currency, although there are a handful of online banks that are state-chartered.

All banking transactions will be done sans tellers, with customers banking online via personal computer or by phone.

Banks have lagged stock brokerage firms in setting up shop in cyberspace, experts say. Many banking executives remain wary of online security and contend the cost savings offered by online banking aren’t sufficient to lure customers away from brick-and-mortar branch offices.