New Internet Top Level Domains (like ".bank")

Issue

ICANN, the governing body of Internet domains, approved a plan in 2011 that will dramatically increase the number of Internet domain name endings -- called generic top-level domains (gTLDs) -- from the current 22, which includes such familiar domains as .com, .org and .net. The application process could result in hundreds of new domains -- some brand-specific, like ".canon" and some general, like ".bank" -- and an exponential increase in websites. This presents both threats and opportunities for all organizations, but especially for banks, which have a reputational interest in ensuring that any entity calling itself a bank is, in fact, a regulated, federally insured depository institution.

ICANN has solicited applications for the creation of gTLDs on two other occasions, the last one occurring in 2000. Any entity expecting to secure rights to and run a new domain can expect to submit a $185K application fee to ICANN in addition to spending up to $2 million in start-up costs and $2 million annually on operations and infrastructure costs.

For ICANN's  upcoming gTLD application round, which will take place between Jan. 12, 2012 and April 12, 2012, there will be two types of applications - open and community. Open applications can be applied for by anyone, such as a company seeking to use its brand as its domain (such as ".citi"). Community applications, such as ".bank" can be utilized to serve the banking community, but applicants must demonstrate that they represent that community globally.

Position Statement

An ABA Chairman's Dot-Bank Working Group composed of bankers from both small and large institutions is guiding ABA actions and advocacy on this critical issue. ABA's actions have been necessarily both offensive and defensive, since most banks likely have little immediate demand for a .bank site but would not want to see others claim that domain.

Since ICANN announced its intentions with the new gTLDs, ABA has worked to stop or slow the process as it relates to financial domains so that critical issues can be addressed. ABA is particularly concerned that any application for or use of a financial domain, such as ".bank," protects the interests and security of banks and bank customers. ABA also advocated that ICANN develop mechanisms enabling trademark and brand owners to protect their intellectual property online, curtail domain squatters and prevent other types of infringement.

ABA's advocacy has resulted in ICANN acknowledging that financial domains should have higher levels of security than domains generally. In response to stakeholder outcry, ICANN also agreed to add limited intellectual property protection. However, we anticipate that expensive defensive registrations will remain necessary for brand and trademark protection.

ABA also is concerned that if an unaffiliated party controls a .bank domain, it could either charge significant fees to financial institutions wishing to protect their intellectual property or fail to securely operate such domains, damaging consumer confidence in the Internet channel.

Status

ABA currently is exploring, with the Financial Services Roundtable, whether to apply to become a registrar for ".bank" in order to prevent misuse of the domain and to work with the industry to ensure customer confidence in the domain's legitimacy and security. ABA also is consulting with members of the International Banking Federation (IBFed) and other trade associations to influence the application process, develop governance models for a ".bank" domain and find funding mechanisms.

ABA has signed an agreement with the Roundtable and VeriSign to explore filing a joint application for one or more financial domains. The agreement allows us to explore the financial and other ramifications of filing an application and operating financial domains without committing us to do so.

Finally, ABA continues to leverage its unique role as the only trade association representing U.S. banks of all sizes, and as a founding member of the IBFed, by: educating bankers on the issue; creating a broad community of interest to strengthen our potential application; consulting with providers of bank website services, and identifying and resolving banker concerns.

If you would like to be kept informed on "dot-bank" issues, please send an e-mail to ABA Dot-Bank Update. 

Contact for further information: Doug Johnson (202) 663-5059 or
Lauren Bowers (202) 663-5507.