Online banking, often known as internet banking, online banking, or home banking, is a payment system that enables bank or other financial institution clients to execute a range of financial transactions via the financial institution's website.

The online banking system will often link to or be a component of a bank's core banking system in order to offer financial services to consumers in addition to or instead of conventional branch banking.

Online banking reduces bank operating costs by lowering dependence on a branch network, and also gives more convenience to certain consumers by removing the need to visit a branch bank and enabling them to complete financial activities even when branches are closed.

Internet banking services include examining account balances, receiving statements, evaluating recent transactions, moving money between accounts, and making payments.

Some banks are "direct banks," which utilize simply the internet or the internet plus the phone. They are distinct from "neobanks," which lack depositary insurance.

THE INTERNET, CUSTOMER APPREHENDEMENT, AND ONLINE BANKING
When the clicks-and-bricks boom erupted in the late 1990s, many banks regarded web-based banking as a strategic need.

OP Financial Group, a cooperative bank, established the world's second online bank and Europe's first in 1996.

Lower transaction costs, faster service integration, interactive marketing possibilities, and other features that boost client lists and profit margins are self-evident benefits of online banking. Furthermore, Internet banking services enable institutions to bundle more services into a single package, appealing users while reducing costs.

Wells Fargo was the first bank in the United States to provide account services via its internet in 1995, and other banks swiftly followed suit. The next year, Presidential was the first bank in the United States to provide Internet banking.

According to Internet Banking Report study, fewer than 0.4% of US households utilized online banking by the end of 1999. At the beginning of 2004, over 33 million US homes (31%) utilized some type of online banking. According to a Gartner Group poll, 47% of Americans utilized internet banking five years later. Meanwhile, online banking climbed from 63% to 70% of internet users in the United Kingdom between 2011 and 2012. Approximately 61% of Americans utilized digital banking in 2018.

IN EUROPE, ONLINE BANKING PENETRATION HAS ALSO INCREASED.
In 2019, 93 percent of Norwegians utilize online banking platforms, following just Denmark and the Netherlands. According to a 2015 McKinsey Company study, more than 700 million Asian consumers utilize digital banking on a daily basis.

By the year 2000, e-banking was accessible at 80% of US banks. Customer use rose gradually. For example, it took Bank of America 10 years to attract two million e-banking users. However, there was a substantial societal change when the Y2K fear passed.

Bank of America was the first to surpass three million online banking clients in 2001, accounting for more than 20% of its overall customer base at the time. Citigroup claimed 2.2 million Internet ties globally, while J.P. Morgan Chase stated it had over 750,000 online banking users. Wells Fargo has 2.5 million clients who used internet banking, including small businesses. Online customers are more loyal and lucrative than in-store customers.

Bank of America customers made a record 3.1 million electronic bill payments totaling more than $1 billion in October 2001. In 2017, the bank has 34 million active digital accounts, both on the Internet and on mobile devices. According to a Gartner Group survey published in 2009, 47% of US people and 30% of UK adults bank online.

The growth of branch-less banks as internet-only entities started in the early 2000s. These internet-based banks have fewer overhead expenses than their physical equivalents. Deposits at certain direct banks in the United States are guaranteed by the FDIC, offering the same degree of protection as deposits at conventional banks. Neobanks are branchless banks that are not insured by the FDIC in the United States.

FIRST, THERE ARE ONLINE BANKING SERVICES.
THE UK (United Kingdom) (UK)
Online banking in the United Kingdom started in September 1982 with the debut of the Nottingham Building Society's (NBS) Homelink service, which was originally restricted until being extended countrywide in 1983.

Homelink was made possible by a collaboration between the Bank of Scotland and British Telecom's Prestel service. The system employed the Prestel viewlink system and a computer, such as the BBC Micro, or a keyboard (Tandata Td1400), which were connected to the telephone system and television set.

Users may use the system to "transfer money between accounts, pay bills, and make loan agreements... Price comparison and ordering from a few big shops, checking local restaurant menus or real estate listings, vacation planning... bid in regular Homelink auctions and send e-mail to other Homelink users

A formal command specifying the intended recipient was required to be transmitted to the NBS, which put the information into the Homelink system. Gas, electric, and telephone companies, as well as accounts with other banks, were common receivers. The account holder utilized Prestel to submit payment information into the NBS system. NBS then sent the payee a check along with an advisory outlining the payment to the account holder. Later, BACS was utilized to send the money directly.

THE UNITED STATES OF AMERICA, AMERICA
In 1984, a year after internet banking became widespread in the UK, in-home banking was "still in its infancy" in the US, with institutions "cautiously testing consumer interest."

At the time, Chemical Bank was established in New York. "Its service, which has some limitations, is still being worked out."

Chemical introduced the Pronto service in 1983, intended for individuals and small enterprises. It enabled customers to manage electronic checkbooks, see account balances, and transfer funds between checking and savings accounts. Soon after, the other three big banks — Citibank, Chase Bank, and Manufacturers Hanover — began offering home banking services as well. Chemical abandoned Pronto in 1989 as it failed to attract enough consumers to break even. Other banks ran into similar problems.

Since its debut in the United States, Internet banking has been overseen under the federal Electronic Funds Transfer Act of 1978.

FRANCE
Following a test phase with 2,500 customers starting in 1984, Internet banking services were offered in 1988, utilizing government-supplied Minitel terminals. By 1990, there were 6.5 million minitels in use. One of the most popular services was online banking.

Later, online banking services went to the Internet.

JAPAN
Sumitomo Bank offered the first online banking service in January 1997. By 2010, the majority of large banks have launched Internet banking services, with different degrees of success. In 2012, 65.2% of respondents utilized personal online banking, according to the Japanese Bankers Association (JBA).

CHINA
Tencent's online bank, WeBank, launched a four-month experiment of Internet banking in January 2015.

AUSTRALIA
Advance Bank, which had been bought by St.George Bank, started to provide Internet banking to its clients in December 1995, with the introduction of the C++ Internet banking application.

WHAT EXACTLY IS ONLINE BANKING?
Most fundamental banking operations may now be completed online, removing the need for customers to visit a bank location. They may accomplish all of this whenever and wherever they choose, whether at home, at work, or on the road.

A computer or other device, an Internet connection, and a bank or debit card are required for Regions Online Banking. Clients must first join up for their bank's online banking service before they may utilize the service. They must first establish a password before registering. They will then be able to utilize the service for all of their banking requirements.

Online banking transactions differ depending on the institution. The majority of banks provide basic services such as transfers and bill payment. Customers may also create new accounts and apply for credit cards using the Internet banking platforms of select institutions. Other features include the ability to order checks, place stop payments on checks, and record a change of address.

Checks may now be deposited online using a mobile app. The consumer inputs the amount before photographing the front and back of the check to complete the deposit.

Traveler's checks, bank draughts, some wire transactions, and the completion of certain credit applications, such as mortgages, are not supported via online banking. These transactions must be conducted with a bank representative in person.

THE BENEFITS OF ONLINE BANKING
The simplicity of Internet banking is a huge benefit. Login to Region Bank Online Bill payment and account transfer are straightforward financial procedures that may be accomplished anywhere, at any time, 24 hours a day, seven days a week.

Online banking is simple and fast. Funds may be moved extremely swiftly across accounts, particularly if they are kept at the same institution. Consumers may utilize the Internet to create and terminate a variety of accounts, ranging from fixed deposit accounts to recurring deposit accounts, which often provide greater interest rates.

Customers may also keep their accounts secure by regularly checking them. Access to banking information 24 hours a day, seven days a week allows for early identification of fraudulent behavior, guarding against financial harm or loss.

THE BENEFITS OF ONLINE BANKING
For a first-time Internet banking user, using systems might be challenging, preventing transactions from being performed, which is why some consumers prefer face-to-face transactions with a teller.

When a consumer demands access to huge quantities of cash, online banking is useless. While he may be able to withdraw a limited amount from an ATM (most cards have a limit), he will still need to visit a branch to get the remainder.

Despite continual advances in online banking security, such accounts continue to be susceptible to hacking. To prevent unauthorized access while utilizing online banking, individuals should utilize their own data plans rather than public Wi-Fi networks.

Furthermore, internet banking need a steady Internet connection. Connectivity troubles may sometimes make determining whether or not financial transactions have been correctly completed challenging.

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