History of Internet Banking
Posted on 27. Sep, 2009 by admin in Internet Banking
Referred to the use of a terminal, keyboard and TV (or monitor) to access the banking system using a phone line, the term online became popular in the late ’80s. ‘Home banking’ can also refer to the use of a numeric keypad to send tones through a phone line giving instructions to the bank. Using the videotex system, online services started in New York in 1981 when four of the city’s major banks (Citibank, Chase Manhattan, Chemical and Manufacturers Hanover) offered home banking services. Because of the commercial failure of videotex these banking services never became popular. Excapt in France where the use of videotex (Minitel) was subsidised by the telegram provider and the UK, where the Prestel system was used.
The UK’s first home online banking services was set up by the Nottingham Building Society (NBS) in 1983. This allowed on-line viewing of statements, bank transfers and bill payments. In order to make transfers and payments, written instructions gave details of the recipient and had to be sent to the NBS who set the details up on the Homelink system. Common recipients were gas, electricity and telephone companies as well as accounts with other banks.