OCC Opinions and Letters on Permissible Electronic Banking Activities: Internet and PC Banking

OCC publishes letters associated with charter approvals and other licensing activities, including interpretive letters. Some of these letters provide interpretations of existing laws and regulations. This section includes significant approval letters and interpretations associated with Internet banking activities. The following is a listing of topics in this section that also serve as quick links to the referenced materials:

Description	Opinions & Letters
Effinity Bank, N.A. (now doing business as Treasury Bank, N.A.), Conditional Approval No. 462 (April 4, 2001). This Internet-primary bank will deliver products and services to its retail customers through a variety of electronic delivery channels including the Internet, automated teller machines and/or remote service units. The bank may solicit "affinity" relationships with other groups and commercial entities to establish a private-label clientele. The bank will offer its products and services to customers or members of the affinity group under a private label. The bank will establish individual divisions to provide products and services specific to the needs expressed by affinity groups. The bank commits to comply with OCC guidance with respect to co-brands and private labels. This approval contained special conditions due to the nature of the conversion. These include a capital and funding maintenance agreement between the parent company and bank that must be considered satisfactory to the OCC and a written agreement with the OCC setting forth certain actions the bank will take if the bank does not achieve its Internet operating plan results.	Conditional Approval No.462 (PDF)
Bridge Bank of Silicon Valley, National Association, Conditional Approval No. 427 (November 17, 2000). This is a recent example of a "bricks-and-clicks" national bank where the new bank will deliver its products and services through both a brick-and-mortar office and a transactional Internet site. It is a full-service community bank that will serve the Santa Clara and greater Silicon Valley area of California, focusing on the needs of individuals and small- to medium-sized businesses. The approval was granted subject to certain pre-opening requirements and ongoing conditions primarily addressing Internet security measures.	Conditional Approval No.427 (PDF)
eComm National Bank, Conditional Approval No. 430 (November 13, 2000). This is a "bricks-and-clicks" national bank that will serve the Irvine, California area with a focus on small- to medium-sized businesses. Since the bank had not yet developed the specific plans and operational details for the proposed Internet site, we granted preliminary conditional approval without reliance upon the proposed Internet aspects. Any final plans to offer Internet banking will need to be approved by the OCC as a significant change in operating plan and will be given the same amount of scrutiny had the details been known during the charter application phase.	Conditional Approval No.430 (PDF)
Hutton National Bank, Approved April 13, 2000. Amplicon, Inc., received approval to establish Hutton National Bank, Santa Ana, California, which is to be a proposed Internet-only bank with a small business equipment leasing focus. The bank will purchase from its parent company on an ongoing basis lease payment streams for business equipment leases between $50,000 and $250,000. It will fund operations mostly through retail deposits. It will not have any traditional banking offices accessible to the public but will deliver products and services to customers through a variety of electronic delivery channels, including ATMs, the Internet via a transactional website, and a telephone customer service line. This approval contained special conditions due to the specialty purpose nature of the charter. These include a capital and funding maintenance agreement between the parent company and bank and a transaction pricing methodology, both of which must be considered satisfactory to the OCC prior to opening.	Conditional Approval No.383 (PDF)
Pointpathbank, National Association, Approved April 3, 2000. Synovus Financial Corporation received approval to establish a new, full-service Internet-only national bank to be located in Columbus, Georgia. The bank will offer traditional consumer products and services directly and through third party arrangements on a nationwide basis. The Bank will not have any traditional banking offices accessible to the public. It will deliver products and services to its customers through a variety of electronic delivery channels, such as automated teller machines, the Internet via a transactional website, and a toll free customer service line.	Conditional Approval No.368 (PDF)
AeroBank.Com, N.A., Approved January 29, 2000. This is the first Internet-only national bank to focus on the small business niche. The bank plans to offer loans and deposit products for small businesses and build a virtual mall with links to third parties providing services and products of particular interest to small businesses. The bank will deploy business development officers in major cities and establish deposit-taking ATMs in anticipated high-volume areas.	Conditional Approval No.347 (PDF)
CIBC National Bank, Approved July 9, 1999. News Release July 12, 1999. Canadian Imperial Bank of Commerce, Toronto, Ontario, Canada (CIBC), received approval to establish a new full-service national bank in Maitland, Florida. The bank will not have any traditional banking offices but will deliver products and services through a variety of electronic delivery channels. Customers will conduct transactions through ATMs, Internet via a transactional website, and via a toll free customer service line. These delivery channels are available at kiosks located on the premises of retail stores for which the bank has a joint marketing arrangement. The bank will operate under a brand name associated with the retail store partner.	Conditional Approval No.313 (PDF)
NextBank, Approved May 8, 1999. NextCard, Inc., San Francisco, CA (NCI), received approval to establish a new national, limited-purpose credit card bank. The proposed bank, NextBank, N.A., represents the second Internet bank charter approval granted by the OCC. NCI is establishing the Bank to fund and originate its own receivables. This role is currently performed by an unaffiliated state bank in conjunction with a third-party credit facility. NCI launched the NextCard VISA card in December 1997. The product is marketed exclusively through its website, www.nextcard.com. The NextCard can be used for both online and offline purchases. Key features of the NextCard product include an entirely online credit application and approval process and an Internet direct marketing approach.	Conditional Approval No.312 (PDF)
CompuBank, Approved August 20, 1997. CompuBank, NA, Houston, TX, is the first national bank charter approved to deliver products and services to customers primarily through electronic means and designated a limited-purpose bank. It will not have any traditional banking offices. In addition to using the mail, customers will conduct their banking transactions by personal computer or by telephoning the automated voice response system or customer service line. It will focus exclusively on checking and savings accounts and electronic bill payment services.	Conditional Approval No.253 (PDF)
Apollo, Interpretive Letter No. 742 (August 19, 1996). This legal opinion was the first time the OCC formally expressed the view that national banks offer Internet banking services and, in connection with those activities, provide full Internet access service.	Interpretive Letter No.742 (PDF)