A brief history about online banking – Today is a Good Day
The concept of internet banking dates all the way back to the 1980s, although online transactions have only really gained global popularity since the turn of the millennium with the advent of secure service providers such as Neteller and PayPal.
The first ever internet banking service was launched in 1983 by a UK-based bank – the Nottingham Building Society (NBS). Using integrated fax, telephone and web-based technology, the system allowed registered users to execute transactions online without having to actually visit the bank in person. While very limited, the NBS system is credited as being the first of its type which many other companies used as a basis to develop their own online banking systems.
The first online banking systems in the US wasn’t introduced until a full decade later, in 1994. Developed by the financial institution Stanford Federal Credit Union, this catalysed the development of other systems of making online payments via real banks. In 1998, PayPal was first launched and then bought up five years later by eBay as a means of facilitating online payments on their well-known auction site.
Over the course of the next 20 or so years, banks across the world started to add online payment systems as part of their services; today, online banking is considered as a standard practise for all major banks, with many banks now switching exclusively to online platforms (i.e. no brick and mortar buildings anymore).