Finance Banking

Online Banking In America

Published at 07/07/2011 23:56:24

  Online Banking also known as Internet banking first came to use in the early ‘80’s. The discovery of online banking has served as a revolution in the economic world. Its basic aim was to facilitate customers who prefer to avail the services of their retail or virtual banks while sitting at home or elsewhere. Transactional facilities such as bill payments, money transfer, loan applications and wire transfer are some of the available facilities. However, customers and users have strict security concerns while banking online. Practices such as phishing and pharming upset the users and avert them from online banking systems. In their best attempts to restrict the hackers, banks provide Personal Identification Numbers (PIN) and Transaction Authentication Numbers (TAN) to users. These methods are quite reliable in terms of providing security. America has been among the earliest states to bring online banking into practical use and it can be credited for bringing a global change in the methods of banking.

In America, online services became functional only in 1981 when four of the major banks of New York started to provide home banking facilities. The list of these banks is as follows;


Chase Manhattan

Chemical Manufacturers Hanover.

These banks made use of the videotex system. In a strict definition, videotex refers to systems that provide interactive content and display it on a television, typically using modems to send data in both directions. Then too, people preferred to go to banks, operate their accounts while in banks and only then could they be certain of their work. Thus, in the initial years, the use of online banking was not popular, a reason for this being the complicated structure of a videotex and the improbability of their transactions being done. However, with further advancements in technology, things took a sharp turn and all of a sudden, a large number of bank customers shifted to online banking because of its feasibility and easy-to-operate methods.

 Today, thousands of banks in America offer online services to their customers. One of the best and most popular of these is the Bank of America, which earns top ranking in some of the latest comparison reviews of big banks that offer online banking. It ensures complete protection of its customers’ personal information and is simple to function. Next in line is the Charles Schwab Bank, though it isn’t as efficient as the Bank of America, it also offers a well organized internet banking system which is completely profit free. Online-only bank ING Direct has been in operation since 2000, and reviewers say that in addition to being one of the oldest and best known of its kind, it is also one of the most trusted. SmartyPig, an online savings plan offered in partnership with West Bank, offers online savings accounts that pay a competitive rate of interest. What makes SmartyPig special, however, is that it's designed to help users avoid credit card debt by saving for big items instead. These banks are the most well reputed banks for online transactions in the US.

Tips and comments:

 In my opinion, online banking is as much of a curse as it is a blessing. It has unconsciously endorsed hacking around the globe and made it into a full time profession. Nonetheless, in the US, one of the first banks that I would opt for would be the Bank of America, as it has practically worked hard to ensure the safety of its costumers. Also, it is one of the few banks, which cater to all of their customer’s needs and requirements. I would recommend it to everyone who wishes for a safe and sound online bank account.