A Timeline of When Online Banking Became Available

Online banking has come a long way since its inception. The first online banking system was launched in 1983 by the Bank of America, allowing customers to access their accounts remotely.

The first online banking system was launched in 1983 by the Bank of America, allowing customers to access their accounts remotely.

In the early 1990s, the internet became more widely available, making online banking more accessible to the general public. This led to a significant increase in the adoption of online banking services.

The first online banking service to be launched in the UK was by Barclays Bank in 1997.

The precursor to modern online banking services was distance banking electronically and by telephone since the early 1980s. This marked the beginning of a shift towards more convenient banking options.

United American Bank was the first to offer a home banking service in December 1980, partnering with Radio Shack to produce a secure custom modem for its TRS-80 computer. Thousands of customers paid $25–30 per month for the service.

The service included features such as bill pay, account balance checks, and loan applications, as well as game access, budget and tax calculators, and daily newspapers.

In the 1950s, banks were struggling with labor-intensive check processing, with each check needing to be handled at least six times during processing. This led to high turnover of clerks and a swelling amount of paper.

Bank of America enlisted the help of the Stanford Research Institute to solve this problem, and after five years of research and development, they unveiled ERMA, the first electronic bookkeeping technology in the banking industry. ERMA paved the way for digital banking advancements that would follow.

The check use doubled between 1943 and 1952, making the need for a simpler solution even more pressing.

The first ATM was introduced in London in June 1967, allowing customers to cash checks and withdraw funds outside of bank hours.

This innovation marked a significant shift in the way people banked, giving them more freedom and flexibility to manage their finances.

The first American ATM was installed at Chemical Bank in Rockville Centre, New York in 1969, with the slogan "On September 2, our banks will open at 9 am and never close again" emphasizing the convenience of this new technology.

John Shepherd-Baron is credited with inventing the ATM, and while the stories about how he came up with the idea may be exaggerated, his invention had a lasting impact on digital banking.

The ATM's ability to operate outside of bank hours was a game-changer for customers, and it paved the way for future innovations in digital banking.

The emergence of online services marked a significant shift in the way people interacted with their banks. In 1980, United American Bank offered the first home banking service, which allowed customers to access their account information securely using a custom modem.

This innovative service included features like bill pay, account balance checks, and loan applications, as well as game access and budget calculators. Thousands of customers paid $25–30 per month for the service, showing the potential for online banking to take off.

However, the commercial failure of videotex, a technology used by some banks, limited the adoption of online banking. The first videotext banking service in France was launched in 1983, but it wasn't until the 1990s that online banking started to gain momentum.

The 1980s marked the beginning of at-home banking technologies. Bank One launched Channel 2000, a simple software that allowed customers to view their balances, pay bills, and transfer money between accounts over telephone lines.

Chemical Bank released Pronto in 1983, considered the first online banking system. This innovation laid the groundwork for future developments in digital banking.

Chase Manhattan Bank introduced Spectrum in 1985, a more advanced home banking service that offered financial planning and investing features. Despite these advancements, adoption was slow due to the high cost of equipment and customer hesitation to adopt new technology.

In 1993, Tim Berners-Lee created the first web browser and editor, forever changing the digital banking landscape.

By the mid-1990s, most major banks had websites, but they functioned as little more than digital business cards.

Wells Fargo became the first bank to increase the utility of their website in 1995, enabling customers to check their balances and review their statements online.

This service expanded in the years that followed, allowing customers to make some transactions like transferring money between accounts and establishing recurring bill payments.

By 2000, 32% of national banks had transactional websites, making online banking more convenient and accessible to the masses.

SMS was a key player in the early days of mobile banking, allowing customers to check their account balances via text messages. This was especially useful as mobile phones were becoming increasingly popular.

By 1999, mobile web services had emerged, and banks started to introduce more services, but SMS banking was still the primary way to interact with customers.

The use of SMS in banking was mainly limited to simple services, such as requesting account balances or receiving notifications about transactions. Banks were just starting to experiment with mobile banking, and SMS was the most accessible technology at the time.

As mobile phones became more widespread, banks saw an opportunity to expand their services and reach more customers. However, the services offered via SMS were still quite basic.

Online banking has come a long way since its inception. The first online banking services were introduced in the early 1980s.

United American Bank was the first to offer home banking services in 1980, using a TRS-80 computer and secure modem. This marked the beginning of online banking.

Remote banking services started in New York in 1981, with four key banks - Citibank, Chase Manhattan, Chemical Bank, and Manufacturers Hanover - enabling their customers to access home banking. This was a significant step towards online banking.

The Bank of Scotland was the first to offer internet banking in the UK, launching its "Homelink" service in 1983, which allowed customers to send transfers and pay bills via internet connection via TVs and phones.

Stanford Federal Credit Union became the first financial institution to provide online banking to all its customers in the US in 1994. This was a major milestone in the history of online banking.

Presidential Bank was the first bank in the USA to enable customers to access their accounts online in 1995. This further accelerated the adoption of online banking.

The Royal Bank of Scotland became the first UK bank to launch a complete internet banking service via text in 1997. By 2006, 80% of all US banks were providing internet banking services, making it a ubiquitous feature in the financial industry.

Online banking has fast become a sensation in the finance industry, with many banks now offering online services.

The first online banking services were introduced by regions, with banks in different areas offering their own unique services.

In the finance industry, online banking has changed the way people view bank transactions, making it easier to monitor accounts and make payments.

Banks were the first to jump onto the trend, with many now offering online services to their customers.

Online banking has made it possible to check account balances and make mortgage payments from anywhere, at any time.

This convenience has changed the way people view bank transactions, and it is only set to get better with time.