1. The main economic characteristics of online banking for those who only use Internet banking, the main factors that influence their decision to bank online are security, convenience and fees. As for the economic features, the main difference with online banking is that the rates tend to be higher for those companies that offer only internet banking and no branches. Some of the other economic features could be that all banks are starting to offer online banking services, which makes it easier to conduct different types of transactions such as paying bills; money transfers and tracks your accounts individually. Online banking is a developing industry, it is still very new and not many people feel safe and secure in using online banking as there are many threats to transactions such as hackers and identity theft.2. The online banking industry is changing rapidly as the number of customers starting to use their services is increasing. This is due to the convenience and the fact that they are able to manage their bank accounts 24/7, this offers flexibility to those customers who cannot go to the bank during the day. Online banking is also changing to offer safer and more secure transactions, and transactions are guaranteed by the federal government. Additionally, many banks offer identity theft protection in the sense that if you notice that purchases have been made and you have not made these purchases, they will refund the money to your account and take it upon themselves to investigate the matter further. This creates a sense of trust and responsibility in their customers and they are able to transact with the confidence that their identity is not in danger. Demographics are also changing and as baby boomers are retiring and becoming more adaptable to technology, they too are starting to use online banking as it is convenient for many people who are disabled and unable to travel to branches to make certain transactions. Additionally, as a new generation of individuals enters the workforce, they are more technologically equipped to use online banking and feel more comfortable with its service..