Online Banking And Its Impact On The United States

1001 WordsApr 20, 20165 Pages
Introduction: Since the 1980’s, online banking has made the lives of everyday people more convenient. With the new innovations and creations to computers, online banking has grown to become the most used form of banking in the US (5). From the first ATM to mobile banking technology has helped shape One of the first computerized innovations to online banking, the credit card, revolutionized how cash was money was used in society. 1950 – 1960’s: During the 1950 a man named Frank X. McNamara, was sitting at dinner when he realized he had left the house without cash. After having to call his wife to bring him some, he vowed to create something to solve this problem. That same year McNamara and his friends started the first credit company…show more content…
1970’s - 1980’s: About 20 years later in 1981, a few New York City banks including, Citibank and Chase Manhattan, introduced the first form of online banking to the US. The first service allowed customers to send transfers and bills by connecting the TV set and telephone line (7). While this is different than what we think of as traditional online banking, this was the cornerstone to what online banking has become today. 1990 - 1995: After a long absence of innovations to online banking, Stanford Credit Union was the first financial institution to offer online banking to all of its customers in 1994(7). This was important for online banking because it set a standard that helped get more financial institutions on board with online banking. That same year, online banking was built into Microsoft’s money personal finance sloppy disc software. Over 100,000 began accessing online banking using this device (5). 1996 - 2000: By the mid 1990’s most of the major banks now offered online Bill Pay to all of its customers for a small monthly fee (6). By this time, online banking has begun to grow rapidly, along with the concerns for customer security. Like with many changing technologies, many customers of online banking become skeptical of how well the technology could protect them. With growing concerns from customers, banks began increasing their security with online accounts (7). 2001 - 2005: In 2001, it was reported that eight US banks now have at least one
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