How much have you heard about online banking? I’m going to guess it involved something about identify theft, spyware, and stolen passwords. Despite security concerns by users online banking is alive and very well. ING Direct has found a niche and is bringing in the money.

In just five years, the Wilmington, DE-based subsidiary of Dutch financial services conglomerate ING Groep NV has gone from nothing to three million customers, $51 billion in assets and $37 billion in deposits. It’s now the nation’s largest standalone Internet bank-and bigger than such established names as M&I Corp. and Huntington Bancshares. Pretax profits in 2004 were $159 million, far more than its founders envisioned at this stage, while return on equity was nine percent.

ING Direct is paying attention to security too. A recent article on Wired.com highlighted just that.