Following three high-profile Web banks' announcements that they would give up Internet-only status and open branches, three other Net-only banks said they were hanging tough.

The Internet-only business model suffered a major setback last week when executives from WingspanBank, VirtualBank, and First-E Group announced at an American Bankers Association conference that they would open physical locations. The tendency of people to seek out other people for help in opening accounts and carrying out transactions is too strong to disregard, they said.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.