About 18 months ago, Randy Waterfield, like many others, thought he could make a killing by setting up an Internet-only bank. But today, also like many others, he has found that the ones getting killed are the investors.His venture, National InterBank, now has about $85 million in assets.

But he is giving up on stand-alone Internet banking, at least for now. Instead, Waterfield is shifting gears, focusing on offering outsourcing services to financial institutions: banks, brokerages and insurers.

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