Internet banking Essay

profit is rapidly turning out to be a tool of initiation widely communication. The increasing use of meshwork earlier promoted producers and entrepreneurs to sell their products online. It has also become an important source of culture and knowledge. Due to this, many banking and finance organizations founder come up with the idea of Internet banking or online banking.What is Internet BankingInternet banking fag be defined as a facility provided by banking and financial institutions, that enable the user to execute bank related transactions through Internet. The biggest advantage of Internet banking is that people can expend the services sitting at home, to transact business. Due to which, the account holder does non have to personally visit the bank. With the help of Internet banking many transactions can be executed by the account holder. When small transactions like balance inquiry, record of recent transaction, etc. are to be processed, the Internet banking facility prove s to be very handy. The concept of Internet banking has thus become a innovation in the field of banking and finance.Brief History of Internet BankingThe concept of Internet banking has been simultaneously evolving with the organic evolution of the world wide web. Programmers working on banking data bases came up with ideas for online banking transactions, some time during the 1980s. The creative process of development of these services were probably sparked off after many companies started the concept of online shopping. The online shopping promoted the use of credit separate through Internet. Many banking organizations had already started creating data ware housing facilities to ease their working staffs. The development of these databases were widely used during the development of ATMs.Sometime in 1980s, banking and finance organizations in Europe and get together States started apocalyptical researches and programing experiments on the concept of home banking. Initially in the 80s when computers and Internetwere non so well-developed, home banking basically made use of fax machines and telephones to facilitate their customers. The widespread of Internet and programming facilities created further opportunities for development of home banking.In 1983, the Nottingham Building Society, commonly abbreviated and referred to as the NBS, launched the first Internet banking service in United Kingdom. This service formed the basis for most of the Internet banking facilities that followed. This facility was not very well-developed and restricted the number of transactions and functions that account holders could execute. The facility introduced by Nottingham Building Society is verbalize to have been derived from a system known as Prestel, that is deployed by the postal service department of United Kingdom.The first online banking service in United States was introduced, in October 1994. The service was developed by Stanford Federal assurance Union, which is a financial institution. The online banking services are becoming more and more prevalent due to the well-developed systems. though there are pros and cons of electronic cash, it has become a revolution that is enhancing the banking sector. Read more at Buzzle http//www.buzzle.com/articles/history-of-internet-banking.html