When Did Online Banking Begin?

The transition from the traditional sense of banking toward the convenience of an online system dates back through the 1980s and until the mid-1990s.

Significance

The arrival of the Internet and the growing usage of personal computers presented a great opportunity for the banking industry to transform the way people conducted their banking business.

History

Experimentation with online banking started during the early 1980s, but it wasn't until October 6, 1995, that Presidential Savings Bank first offered customers an online alternative to the traditional banking experience. Soon after, Wells Fargo, Chase Manhattan and Security First National Bank offered online banking, too.

Function

Online banking originally referred to the use of a terminal, keyboard, TV or monitor to access the banking system through a phone line.

Features

Initially, people were able to view their accounts and transfer funds between them. Nowadays, online banking has matured into a system that allows customers to pay bills with a few clicks of the mouse.

Misconceptions

At first its inventors believed online banking would replace the traditional system, but some people still prefer a more personal banking experience.