Even a few years ago we had to go to the banks for every little thing- even for checking our account balance. From there to today, the journey has been worth recalling. It is hard to think that once upon a time, all banking was controlled with brick and mortar financial institutions. But after 2015, October, everything changed for good. Today, we can check account balance, send money, withdraw cash, transfer money, open accounts and everything related to banks just via our smartphones and computers.
Now let us discuss what online banking is. Online banking, also named as net banking, internet banking, e-banking or virtual banking, is an electronic payment system. It is one method of banking in which transactions are conducted electronically on a secure website operated by the banks online.
Before discussing where online banking will go after ten years from now, it is important to know how it all started.
In the pre-online banking era, we had to visit the banks and wait in the long queues. This was tome consuming. The 1980s is considered as the dawn of online banking. At first, in 1981, telephone line connection used to connect users to their bank accounts through computers and television screens. Only a few banks in New York have access. The banks are Citibank, Chase Manhattan, Chemical Bank, and Manufacturers Hanover.
In the 1990s, there was a rapid growth of online banking- it transcended from telephone line connection to internet connection. Stanford Federal Credit Union is the first financial institution to offer online banking.
In the 2000s, online banking became a norm. 80% of the US banks started offering online banking and Bank of America had a huge growth in numbers of customers.
Now you can access your bank account in real-time on any digital device that connects to the web. Online banking is slowly replacing service for good.
Now, the financial technology companies are using free credit scores, high-yield saving accounts, free brokerage accounts, Forex Managed accountg , cryptocurrency accounts, managed forex account P2P payments, and whatnot.
By 2010, online banking grew faster than the internet. Online banking has continued to evolve as more innovation and conveniences have been offered.
In 2018, online banking became boundless. Customers expected accounts to include cost-free online banking. Even several banks operate only, cutting down aerial costs to propose better cutthroat rates on saving =s accounts, thus, enjoying higher profit margins.
Almost every bank that wants to remain competitive in this fast-paced high-tech world, needs to provide an online option to its customers. For instance, if you want to take a loan, which is undoubtedly a time killing process, you can calculate the amount and get it approved then and there online. Now we can even cross-refer and compare all the loan facilities available in the market, just by sitting at home, while even traveling. Moreover, if you are in a dilemma regarding how to manage your finance, you can get assistance at that very instance- online banking will get you covered. You will have customized support 24/7 whenever you will be in need of any consultation or advice. Even it can even advise hundreds of customers simultaneously.
In 1999, the European banks started providing mobile banking facilities to the customers. This move was a gamechanger. Now, in 2020, every alternate person uses a smartphone. Therefore, the popularity of mobile banking has outpaced online banking. According to Business Insider Intelligence, mobile banking is thriving at five times the rate of online banking. Even half of all customers are mobile banking users.