The History of Online Banking

By Julio Herrera Velutini

Introduction

A banking executive, Julio Herrera Velutini possesses more than two decades of experience in the financial sector. Leading various banks through the integration of new technology, Julio M. Herrera Velutini has a wealth of knowledge in establishing online banking services for financial institutions in Puerto Rico and Venezeula.

Dating back to the 1980s, online banking began in the form of simple electronic media. With access to a phone line, terminal, and monitor, consumers could access their banking accounts using a numeric keypad to send messages to their financial institution.

Online Banking

They were able to view their bank statements, pay bills, and transfer money. Initially offered in New York, the service quickly spread overseas within a couple of years.

While online banking services grew in the 1990s, customers truly noticed a dramatic change beginning in 2001. This was the year that a prominent financial institution obtained more than three million online banking customers. Noticing its success, other banks made it a priority to offer online banking services as well.

Conclusion

Today, conducting banking business over the Internet is common practice among consumers and has reduced the need for brick and mortar financial institutions. As a result, banks focus on offering lower interest rates and developing new convenience services, like mobile banking.