Which bank became the first federally insured Internet-only bank when it opened in 1995?

Security First Network Bank became the first federally insured Internet-only bank when it opened in 1995.

Based in Atlanta, Georgia, the bank was created by Security First Network Bank Corporation and began operations in October 1995. Its launch demonstrated that customers could access core banking services through the public Internet rather than visiting a traditional branch.

The bank offered online account access and electronic banking services at a time when home Internet use was still developing. Its early model helped establish online-only banking as a distinct banking product, although later institutions introduced broader services and more polished digital platforms.

Security First Network Bank is sometimes confused with NetBank, another early Internet bank. NetBank launched later, in 1996, and became one of the better-known early online banking brands before failing in 2007. The broader term “direct bank” now describes institutions that operate primarily without physical branches.