In 2004, the U.S. Federal Deposit Insurance Corporation (FDIC)
issued a report on “limited-purpose banks” (which included online-only banks) in its Future of Banking Study series. This FDIC report concluded that the economics of operating an online-only bank were not attractive and that very few such banks cloud ever expects to be successful in the long term. Despite the FDIC’s gloomy outlook, a number of bank operate only online. One of those banks is the First Internet Bank of Indiana (often called First IB).