Our current policy for online banking's eligible accounts is due for review. Currently policy defines that POD/ITF/UTMA are not considered eligible accounts for online access. Other financial institutions allow online access and online account opening. Is there any risk management practices or regulatory compliance that may be applicable to restricting these types of accounts from online account access?

In most banks if you exclude POD/ITF accounts, that would eliminate about 75% of your account base. Why would online banking be restricted for those designation. They only come into play if the accountholder is dead. UTMA accounts is really up to the bank and might be determined on if they have inquiry only.

I might suspect that originally the bank wanted to take a conservative approach and ease into online accounts much the way customers could view balances, then move funds between their own accounts and then move funds to others. Much was a risk based decision and new technology we were getting used to. I would agree that so long as you have the training and infrastructure to handle the accounts you can take off the training wheels. It's a matter of what you want to support and getting many of these customers out of the lobby and on your server is a plus.