Monday, June 29, 2009

Online Banking - History Still in the Making?

A very famous cash management tool that banks now use is their online banking access. Some call it internet banking, online banking or other catchy names but basically, it allows clients of banks to access their account online, view their balance, check the history of their account, pay bills, transfer funds and other actions previously available only if you physically visit a branch of your bank. Online banking saves time, effort, gas, parking fees and it lets you avoid traffic rush hours. More and more banks are now moving towards having this tool and it is gaining popularity faster than the earlier version of a similar tool, which was telephone banking. But how did internet banking start? Here is a brief online banking history.

It is believed that online banking began in 1995. It was October 6 and Presidential Savings Bank offered an alternative to the usual branch banking by offering an online access of bank services. This opened the gates for banks solely existing in the internet and allowed other physical banks to join in. Nowadays, it is rare to see huge banks that offer no online banking services as more and more people get connected to the web. There are also more and more banks that advertise on the web and there are now a huge number of web domains owned by banks. This is basically the start of the online banking history.

Today, 30 banks in the US exist only in cyberspace and their depositors grow exponentially due to the fact that they are virtually accessible 24/7 and they are hassle free. There are several types of people who avail of online banking services. There are those that see it as a toll that they can use but do not really explore what else they can do with it aside from balance checking and bills payments. For other transactions, they would rather go straight to the source. Then, there are those that are avid internet users, mostly those that make a living or spend half of their day connected to the web. These are actually so dependent on online banking that if a bank does not offer this service, they won't even consider that bank.

It has now been a decade and three years since the birth of online banking and research shows that it is 100 more cost efficient for banks to run on cyberspace than to have the actual teller to process transactions. However, a pit fall here is that not all Americans are ready for this sort of thing. Some would rather have a face to face interaction with tellers as trust is till a big issue, especially when it comes to money (although online banking virtually destroys human error). Also, research indicate that although phone banking is slowly losing popularity, it is still the number one go-to when clients are at a lost.

Online banking history is still in the making. More and more advances are being made each day on this field and with that being said, let us expect more on internet banking.

By : Julian Davidson
Julian Davidson is a banking specialist and has written many bank related articles to help people save money and avoid the traps.Learn about one of the best online banks RBC Online Banking or to learn about other online banks visit - A popular banking website that provides you with inside information on all the major banks.

Thursday, June 25, 2009

E-banking (Online Banking) and Its role in Today's Society

The world is changing at a staggering rate and technology is considered to be the key driver for these changes around us (, 2006). An analysis of technology and its uses show that it has permeated in almost every aspect of our life. According to Tero et al (2004) many activities are handled electronically due the acceptance of information technology at home as well as at workplace. Internet can be seen as a truly global phenomenon that has made time and distance irrelevant to many transactions. According to Heikki et al. (2002), the transformation from the traditional banking towards e-banking has been a ‘leap’ change.

The evolution of electronic banking started from the use of automatic teller machines (ATM) and has passed through telephone banking, direct bill payment, electronic fund transfer and the revolutionary online banking (Alter, 2002). The future of electronic banking according to some is the acceptance of WAP enabled banking and interactive-TV banking (Petrus & Nelson, 2006). But it has been forecasted that among all the categories, online banking is the future of electronic financial transactions. The rise in the e-commerce and the use of internet in its facilitation along with the enhanced online security of transactions and sensitive information has been the core reasons for the penetration of online banking in everyday life (, 2006). According to the latest official figures from the Office of National Statistics (ONS, 2006) indicate that subscriptions to the internet has grown more than 50% from 15 million in 2000 to 35 million in 2005 in the UK. It has also been estimated that 60% of the population in the UK use internet in their daily lives.

The fundamental shift towards the involvement of the customer in the financial service provision with the help of technology especially internet has helped in reduce costs of financial institutions as well as helped client to use the service at anytime and from virtually anywhere with access to an internet connection. According to theorists (Walfried et al., 2005) customer evaluation of the electronic services is influenced by attributions of success and failure in inter personal service situations.

The use of electronic banking has removed the banking personnel that facilitate the transactions and has placed additional responsibilities on the customers to transact with the service. Although the use of E-banking is provided for the benefit of the customers but these changes require increased work or involvement on the part of customers. These and other factors might be seen as lesser service provided in terms of customer service. But these assumptions would be wrong if the customer knows the value of using the electronic service.

Thus it can be concluded that a fit between task i.e. the banking; technology i.e. the user interface and its reliability; and individuals i.e. the customers and their knowledge about using the service, is the key to successful E-banking services (Zigurs & Buckland, 1998).


Alter, S. (2002), “Information Systems” 4th Edition, Prentice Hall

Heikki Karjaluoto, Minna Mattila, Tapio Pento (2002), “Factors underlying attitude formation towards online banking in Finland”, International Journal of Bank Marketing; Volume: 20 Issue: 6; 2002 Research paper

ONS (2005), “Office of National Statistics”,

Papers For You (2006) "C/B/93. Dissertation. Will online business replace the traditional business in the banking industry in UK?", Available from [17/06/2006]

Papers For You (2006) "P/F/174. Dissertation. Adoption of Online Banking", Available from [18/06/2006]

Petrus Guriting, Nelson Oly Ndubisi (2006), “Borneo online banking: evaluating customer perceptions and behavioural intention”, Management Research News; Volume: 29 Issue: 1/2; 2006 Conceptual Paper

Tero Pikkarainen, Kari Pikkarainen, Heikki Karjaluoto, Seppo Pahnila (2004), “Consumer acceptance of online banking: an extension of the technology acceptance model”, Internet Research; Volume: 14 Issue: 3; 2004 Research paper

Walfried M. Lassar, Chris Manolis, Sharon S. Lassar (2005), “The relationship between consumer innovativeness, personal characteristics, and online banking adoption”, International Journal of Bank Marketing; Volume: 23 Issue: 2; 2005 Research paper

Zigurs, I. & Buckland, B. (1998), “A Theory of Task/Technology Fit and Group Support Systems Effectiveness”, MIS Quarterly, Sep98, Vol. 22 Issue 3, p313-334, 22p

By : Verena Veneeva
Copyright 2006 Verena Veneeva. Professional Writer working for

Monday, June 22, 2009

Advantages and Issues of Concern With Online Banking

Statistics show that there are hundreds of millions of people use online banking, one of the fastest and most efficient ways to manage your finances. Online banking eliminates the long hours and wasted time while queuing at the bank. Paying bills and taking care of any other financial matters, such as monthly payments or money withdraws is now easier than ever. Although online banking is not very old, as it only became popular in 2000, the attractiveness of this banking method placed it on an ascending trend that doesn’t seem to slow down at all.

In fact, millions of people are switching to online banking each year, as the services and products become more attractive, cheaper and more secure. The early history of online banking only offered customers little control over their accounts. Today however, a few clicks of the mouse will enable you to transfer money, pay bills and change direct debit. Moving money in and out of the account is easier than ever and standing orders can be created in a flash. Most financial analysts believe that online banking is the method that most of us will use in the near future. More and more banks are developing virtual offices for their customers and some are even creating virtual help desk personnel and clerks to greet their online visitors.

Advantages and issues of concern with online banking

Online banking offers several advantages over traditional banking. Better rates of interest, for example, are generally offered by most banks that are hoping to attract more clients to their online systems. Better interest rates on credit cards and savings account are common with online banking and the utopist 0% credit card rate was first offered through online banks. Existing accounts also receive better rates and today four of the five best-paying current accounts come from banks that operate primarily online. How come online banking is cheaper? Well, the main reason is that the overhead is reduced, since the institution is able to implement an automated system. Reduced need for renting space and hiring staff also helps transfer some of the costs of online banking to the clients, thus reducing interest rates and offering better deals.

Of course, the biggest fear with online banking regards security problems. A few well mediated stories of hackers emptying online bank accounts have set their roots in our minds, and we can’t seem to be able to replace unfounded fears with hard facts. The 128-bit encryption system used in online banking encrypts al data, before any transfer is made, so that the contents of any file are perfectly secure. Fraud guarantee is common with most good online banks, so even if a hacker manages to breach your account, your money is insured.

By : Roland Bleyer
Roland Bleyer runs the Credit World group of web sites. You can subscribe to our FREE monthly Credit Newsletter at:

Saturday, June 20, 2009

Should I Use Online Banking?

Before, if you still remember, I have talked about online saving account. Today, I will discuss about a quite similar thing which is online banking. Actually, it is quite a common trend nowadays to do banking activities online but for some countries like Malaysia (my home country), online banking is not been used widely. Maybe, the banking system there is not strongly developed yet. But, I expect online banking to be widely used in Malaysia in maybe 5 years time.

Okay, enough with some background of online banking in Malaysia. Let us talk about why we should or should not use online banking.


From online banking, almost every transaction can be done from home. This is good as it saves a lot of our time. Now, we do not have to go down to a bank to do a transaction like transferring money from current to saving account. Before, this transaction only can be done at the bank since ATM machine cannot handle this.

By having online banking, we can monitor our account balance easily. This gives us more control over our budgeting plan (see this post about controlling main expenses). For example, I can now how many should I spend for the rest of the month by looking at the online statement. So, I don’t have to wait for monthly bank statement which sometimes will not be posted at all (I am currently using National Bank as my primary bank and have not received my bank statements for the last 2 months).


Some banks charge online banking under service charge. For my National Bank online banking, they charge me about $1.00 a month although they said that I will not be charged as I am an international student (Damn! I hate National Bank).

And the biggest issue about online banking is security of your account. Since you are doing your transactions online, you information may be traced by other unwanted people. And by using your information like your online banking username and password, your money can be transferred away from your account in just a few seconds!

So, what am I trying to say here?

Basically, online banking is really useful in many ways but at the same time, the risk is sometimes quite high. So, do some research about your bank. You must know the level of security they offer for online banking. Ask your friends about their experience with the particular bank. And consider looking for other’s review online. For the New Zealand online banking system, I would say that Raboplus (operates under the Rabobank) and ASB are still the best. So, after all, the choice is yours. Make it wisely.

By : L. Lyme
The author is the owner of the Millionaire blog-
His blog covers from personal financial matters, how to earn money from blogging and much more. Check it out!

Friday, June 19, 2009

The Benefits of Banking Online

How many drawers did you have to look through to find a bank statement the last time you needed one? Chances are you did not lay your hands on it as readily as you would have liked. If that is a familiar scenario in your home, help has arrived in the form of online banking. Even if you are among the most organized, online banking offers convenience you can’t beat.

Consider online banking with your credit union for instant organization and access to all of your account information. With online banking, information about deposits, payments, statements, and all transactions is immediately available with only a few key strokes 24 hours every day.

Use online banking to pay your bills, transfer money between accounts and monitor your spending. When you pay your bills online you will need to take 15-30 minutes to set up your vendors (lists of payees, addresses, account numbers, etc.) after that, it takes mere seconds to set up a bill payment. You can opt for automatic payments on a date of your choosing or you can point and click each month. Bills paid via online banking arrive at their destination in as few as two days. You don’t need stamps, envelopes or even a pen. Best of all, online banking compiles and allows you to access your payment history for every vendor on your payee list.

Not only will you save yourself the worry of searching for perpetually lost cancelled checks and bank statements you will also save a little money. Most credit unions offer online banking services and e-statements, etc. to their members at no cost with direct deposit or a qualifying account (usually as a benefit of a home equity loan or money market account).

Online banking is infinitely more convenient than waiting for your paper statement each month or even telephone banking. Your transactions are recorded in real time and you can see them as they occur. When you avail yourself of online banking services you are better able to track and monitor your spending. You may even find that it is easier to follow a budget and to avoid overdraft charges with online banking because you have a visual of your spending.

Worried about security? Don’t be, a great deal of technological thought and energy is being brought to the task of maintaining Internet safety. Your banking information is encrypted and there is no chance that third parties can peek in. There is ample evidence that consumers have become more comfortable with online financial transactions. For instance, check printing has seen a decline and online shopping has seen a substantial increase. Financial institutions support our increasing embrace of online banking because it streamlines transactions and costs a great deal less than paper based transactions. Credit Unions pass these savings on to their members.

Visit your local credit union online to take a free online banking tour and demo. You will be surprised to learn how pleasant paying your bills and managing your finances becomes with the convenience and accessibility of online banking. The money you will save is an added bonus.

By : Nicole Soltau
Nicole Soltau is the President and Founder of - The Leading Credit Union Directory Search, Find, Join.

Online Banking and Account Checking Online

The online banking or Internet banking are novel banking terms. The online or internet banking means performing transactions, payments etc. over the internet through a bank's secure website.

The account checking online is very important in online banking. One can have an access to all type of bank account online including savings account online and online merchant account.

The mickle of customers prefer online banking in dealing with their finances today. The online banking is very convenient and secure also. The different online users have different passwords. The number of frauds over online banking is very small, but the online banking can be insecure if users are careless, gullible or computer illiterate. The phishing is an increasingly popular criminal practice to gain access to a user's finances.

The major benefit of online banking is that one can check online banking account outside the bank hours and from anywhere where internet access is available. In most cases a web browser such as Internet explorer or mozilla firefox is utilized and any normal internet connection is suitable. An online bank does not require any special software or hardware. As the online banks have low costs compared to traditional banks, they can offer high interest rates. The online banking usually offers such features as electronic bill payment and the downloading of bank statements for import in a personal finance program.

The popularity of online banking is increasing day by day. The European countries including the Scandinavian countries, The Netherlands, Austria and Belgium, United States, Canada are offering online banking, today.

By : Sardool Sikandar
About Author: The author is the owner of the website cheking accounts, a perfect guide to online banking, offering the best tips on online banking and account checking online. For more info on account checking online, click: online banking.

The Banking Internet Basics

Traditional banking has always been a brick and mortar building where you go to deposit or withdraw money. However, the banking Internet sector has exploded in the past five years. You may not be aware of what banking Internet actually is, and it can be a bit confusing because it has so many names from online banking to PC banking as well as electronic banking and banking online.

With the popularity of the Internet and the power it gives people to take control of their lives, many traditional banks have created banking Internet web pages where customers could transfer money, set up bill payments recurring or otherwise, quickly check items that have cleared, and many other functions that can be accessed 24 hours per day 7 days a week. This banking Internet option has been very popular not only for customers who want to have some control over their account without having to go to the bank but for banks as well whose man hours have been freed up from performing simple tasks like balance inquiries, account transfers, and the like because the customer does it himself with banking Internet.

Banking Internet options also include virtual banks. This is the truest form of banking Internet simply because these banks only exist online. Banking Internet options have become popular because they save customers time and money, which is a very trendy combination. Banking Internet which only exist online means you will have to transfer your money to the new account or else mail a payment via check. Since the whole idea of banking Internet is to make banking as easy as possible, most banking Internet sites will allow you to make a transfer from a brick and mortar bank to the banking Internet site as often as you like with no charge or a small fee.

When you utilize banking Internet options you are able to access your account, move money, pay bills, and any number of things from any computer with Internet access worldwide. This is amazing and makes traveling a lot less stressful as well because with banking Internet you always know where your account stands.

By : Jay Moncliff
Jay Moncliff is the founder of a blog focusing on the banking resources and articles. This site provides detailed information on Banking. For more info visit his site: Banking

Online Banking

Banking has evolved from simple bookkeeping to electronic records, the use of technology have made the banking services from transactions to accessing the accounts even easier and convenient to consumers.

Online banking is the most convenient of all banking technologies, the use of personal computers to access the accounts and ATM cards for withdrawing money without the bank authorities’ approval are some of the few benefits of online banking.

A huge number of banks offer online banking services but some do not, small banks having a low consumer base will not offer this service, most probably the banks with multinational presence having international consumers will provide it. Consult your bank for the procedure of having an online banking account but for my knowledge, it will require an account application for reviewing your financial status and a good credit rating.

The technology used by banks for offering online banking services is far more advanced and robust, the consumers will be handed the account name or number and password and they can access their accounts from any computer.

The online banking services vary from one bank to another, probably the services include balance check, transfer money to other accounts, reviewing transactions, accessing records for cancelled checks or ordering new checks.

The most interesting benefit with online banking is electronic wire transfer between accounts of two different financial institutions. The banks provide facilities for paying your monthly bills online and you have the comfort of maintaining the electronic record of these payments. Another interesting advantage for online banking is direct deposit of your monthly payments from different sources all that is required is to have access for your account number and the payments will de deposited in matter of hours.

The disturbing fact for online banking is security of account holders which have compelled a many of them not to opt for this service, if the bank website is hosted on a secured server is well and good but due to the large presence of malicious hackers online, the personal information of account holders can be accessed by third parties without any difficulties.

Banks generally charge modest fees for these services but depending on your clean history of transactions and account balance the fees may be waived.

Online banking services are very cheap when compared to direct mail or postage.

By : Mohammed Aijaz, an online banking forum dedicated to the discussion of international banking topics on loans,investment,credit,bank operations and all other banking issues.Free banking forum for banking discussion.