Community banks have suffered from the overall decline in bank stock prices. One reason may be fear of what Internet banking may do to these smaller institutions.

Internet banks have no brick-and-mortar costs and much lower personnel costs, so they can offer much higher interest rates to attract deposits. But there is another side to consider: Having real people for customers to talk to is a major advantage.

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.