Technology in Fintech and the History of Online Banking


Online banking has never been so efficient. From arranging overdrafts with just a few clicks to leveraging all financial transactions from super apps, digital financial services have come a long way in the last forty years. We follow the history of online services in finance, which began with the birth of the Internet.


Computerized bank

The first home banking service was offered to consumers in December 1980 by United American Bank, a community bank headquartered in Knoxville, Tennessee, United American partnered with Radio Shack to produce a secure custom modem for its TRS computer -80, allowing bank customers to securely access their account information

nineteen eighty one

Deployment in New York

New York City was the second place to test remote service delivery. Four of its major banks – namely Citibank, Chase Manhattan, Chemical Bank and Manufacturers Hanover – have made home banking services available to their customers under an additional test pilot program, aimed at seeing if the initiative would take off.


UK is catching up

The Bank of Scotland has become the first bank in the UK to adopt the innovative technology needed for remote capabilities. Their customers received an online banking service called Homelink. People had to connect to the Internet through their TVs and phones to pay bills and transfer money. Connectivity was slow and unreliable, but the disruptive potential of this new “telebanking” service was immediately recognized.


Credit Union takes the e-banking mainstream

Copy: In 1994, Stanford Federal Credit Union was the first financial institution in North America to offer Internet banking services to all of its customers. In 1995, Presidential Bank was the first bank in the country to allow customers to access their accounts online. World banking giants watched with interest, noting the success of the project.


Exponential adoption of online banking services

According to reports, in 2006, 80% of all US banks provided internet banking services – and the trend has shown no signs of slowing. In 2009, Ally Bank was founded – the world’s first fully digital bank.

A study by Fiserve in 2010 demonstrated that online and mobile banking services are growing at a faster rate than even the internet.


An ever-changing landscape

Recent reports indicate that 80% of banking customers worldwide are regular users of mobile banking technology. But today, the very fabric of the financial industry is being transformed thanks to DeFi and blockchain technology. Technology is advancing so rapidly that by 2026 many experts believe many Western countries will be officially cashless.

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