With the development of internet technology, a new type of bank has emerged which do not have physical outlets, but which provide services using internet technology—these are called “Direct Banks”. Direct banks are virtual banks which do not need shopfronts or the large-scale recruitment of tellers. Compared to huge bloated traditional banks, these new online banks with "light asset" characteristics are very attractive. Moreover, direct banks can provide 24-hour uninterrupted service to customers around the world with low-cost via the internet. This convenience and boundlessness is very attractive to users.
With the rise of Internet technology in the late 20th century, U.S. direct banks have had 10 years of rapid development. With the rising tide of fintech, direct banks have also gradually entered people's vision in China. At present, China Minsheng Bank and the Industrial Bank have begun to try direct banking. While direct banks have attracted a lot of attention, does the "no physical presence" feature offer substantial advantages to direct banks over traditional banks? Today, with the constant innovation in financial industry, how will direct banks develop? With the development of direct banks, these questions have been in everyone’s mind.
To describe the overall development of direct banks, we selected the 16 most representative direct banks in the U.S. Through data collection and analysis, we compared the overall situation of direct banks with that of American banking industry. These comparisons will be conducive to answering these questions.
