Online banking began in popularity in the late eighties. The term was originally dedicated to describe using a keyboard, terminal along with a television that accesses the banking systems using a phone line. “Home banking refers to the use of the numeric keypad that sends the correct tones down a phone line with banking instructions. These online services began in 1981 in New York. Four of the native banks to New York; Chase Manhattan, Citibank, Manufacturers Hanover, and Chemical, were the first to offer the video system that went with the first online banking. Of course the video banking only caught on in France.
In the United Kingdom, the Bank of Scotland initiated the first online banking system that took place at home. A computer was used to connect the system to a television and a telephone system. This product offered the ability to view statements online, transfer money and initiate bill payments. Many of the first customers to use this system were electricity, gas as well as the telephone companies. Also accounts with other banks took advantage of the primitive online banking.
The first bank to offer internet services to all its members was Stanford Federal Credit Union. Now things are quite different, where there are a plethora of banks that are banks only on the internet. No money is necessary to construct a building for these banks and they are able to offer improved interest rates as well as internet banking capabilities.
Working through this method allows internet banking with more money for their customers because less money is being spent on upkeep for a building. With the introduction of online banking like Capital one online banking many customers now have the speed and accurate information sent straight to their computer. This is very beneficial to customers who do not have time to constantly call or continuously visit a main branch. And now with Google finance, online banking is becoming more easy and manageable.