This report questions the viability of the Internet banking model. In the author's view, Internet banking (at least retail banking) is not the Internet's "killer app" - and nor is Internet broking, at least in the UK. 

Indeed, the best (perhaps only) economic rationale for setting up an Internet bank today is to stop existing customers migrating - and that means doing it on the cheap.  No one is making money from either stand-alone Net banks or multi-channel delivery. Instead, if there is a "killer app" for the Internet in financial services, it may be in the wholesale area or as a cheap way of distributing IPOs and venture capital opportunities.