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History of Online Banking

HISTORY OF ONLINE BANKING
BROUGHT TO YOU BY YODLEE

Since the early 1980s, innovations
in online banking have made it
easier for people to manage their
money. Banks are offering more
and more tools, information, and
access to financial accounts to
help customers achieve their
financial goals. TowerGroup
Research projects that global
usage of personal finance
management tools will reach 70
million in 2014.

Let’s see how it all started and
who’s using the tools today.

START

1983
The Bank of Scotland otters Nottingham Building
Society (NBS) customers the first Internet banking
service in the UK and calls it “Homelink.’Connecting
via a television set and a telephone to send transfers
and pay bills, this service formed the basis for online
banking as we know it today.

1994
January 1994
OnLine banking is built into
Microsoft Money personal
finance software. 100,000
households begin accessing
bank accounts online.
(Online Banking Report, Jan. 2012)


The Stanford
Credit Union
creates the
first online
banking
website.

2001
Yodlee opens its doors, creating the first account aggregation
software and giving consumers the ability to view all of their
financial accounts in one place.

1 MILLION ONLINE USERS


December 2001
Eight US banks have at
least 1 miLlion online users
each. 19 million US
households are accessing
bank accounts online.
(Online Banking Report, Jan. 2012)

2005
As banking moves online, rules must
shift with the times. FFIEC announces
rules and reguLations for financial
institutions: FIs to carry out risk-based
assessments, evaluate customer
awareness programs, and implement
security measures to authenticate
remote account access.

Direct banks (banks that
operate without a physical
branch) begin to otter their
services primarily online: ING
Direct, PC Financial (Canada),
First Direct (UK), HSBC Direct
and eTrade Bank (US).

ING-DIRECT
President's Choice
FINANCIAL
first direct 4I
HSBC Direct.
E*TRADE FINANCIAL

Consumer PFM portals like
Mint.com start to gain popularity
among users as easy-to-use and
well-designed tools to manage
their finances.

mint.com

2007

Pocket Power
Apple launches the iPhone
and a shift from banking via
personaL computer to banking
via smartphone begins.

2009
54 million
US households
accessing bank
accounts onLine.
(Online Banking
Report Jan. 2012)


Bank branches are consolidating. Ratio of the US population
to bank branches shifts from 9.340 in 1970 to 3.684 in 2009.
Branches are increasingLy less important to consumers and
banking moves to kiosk and online solutions.


RATIO OF POPULATION TO BANK BRANCHES
1970 9.340
2009 3.684


GLOBAL
FINANCIAL
CRISIS

CHANGING CUSTOMER
DEMOGRAPHICS AND
EXPECTATIONS WITH
THE RISE OF GEN Y

• 70 million people in the
US between ages of 15-32

• They prefer debit cards,
are accustomed to online
banking, online purchasing
and live a mobile lifestyle

• Privacy is not a concern

• Consume info in snack-size
and expect instant information/gratification

• Rapidly shifting to mobile
banking, 72 million US
adults will use mobile
banking in 2012
Source: Glenbrook Partners

Genworth data indicates that over 1/3 of consumers
felt some level of financial vulnerability.


40%
Consumers want help
reducing debt and
increasing savings. In
a survey of 3,000
consumers, 40% said
they would benefit
from personal finance
management toots.
(TowerGroup research)


2011
Online banking goes mainstream.
Even late adopters choose to bank online
and according to the American Bankers
Association (ABA), the majority of
Americans aged 55+ prefer online
banking over visiting a branch or ATM.

GLOBAL USAGE OF PFM TOOLS
Number of Users (in millions, 2011)

CAGR 21.09%
--------------------------------->

33 44 53 62 70
2010 2011 2012P 2013P 2014P



2012 --------- WHAT’S NEXT?

Yodlee’s platform touches
35 million people globally.


We’re entering an era of social banking.
There will be a convergence of online
banking, PFM, social networking, payments,
rewards, mobiLe, and gaming. PFM wilL no
longer be just a tool, but an experience and
a platform for insights and innovation woven
into all digital experiences.



Yodlee Since the early 1980s, innovations in online banking have made it easier for people to manage their money. Banks are offering more and more tools, information, and HISTORY OF ONLINE BANKING access to financial accounts to help customers achieve their financial goals. TowerGroup Research projects that global usage of personal finance management tools will reach 70 million in 2014. BROUGHT TO YOU BY YODLEE Let's see how it all started and who's using the tools today. START 1983. The Bank of Scotland offers Nottingham Building Society (NBS) customers the first Internet banking service in the UK and calls it "Homelink."Connecting via a television set and a telephone to send transfers and pay bills, this service formed the basis for online banking as we know it today. eeee •1994 January 1994 Online banking is built into Microsoft Money personal finance software. 100,000 households begin accessing The Stanford Microsoft Money Credit Union creates the first online banking website. bank accounts online. (Online Banking Report, Jan. 2012) 2001- Yodlee opens its doors, creating the first account aggregation software and giving consumers the ability to view all of their financial accounts in one place. December 2001 Eight US banks have at least 1 million online users each. 19 million US households are accessing bank accounts online. (Online Banking Report, Jan. 2012) 1 MILION ONLINE USERS 2005- Direct banks (banks that operate without a physical branch) begin to offer their services primarily online: ING Direct, PC Financial (Canada), First Direct (UK), HSBC Direct and eTrade Bank (US). As banking moves online, rules must shift with the times, FIEC announces YOURBANK rules and regulations for financial institutions: Fls to carry out risk-based assessments, evaluate customer awareness programs, and implement security measures to authenticate remote account access. 1234 5LRA 1234 S67 ING DIRECT Praileti Choice EINAN CIAL. first direct X omint Consumer PFM portals like Mint.com start to gain popularity among users as easy-to-use and .com well-designed tools to manage HSBC Direct. EXTRADE their finances. FINANCIAL 2009 2007 Pocket Power Apple launches the iPhone and a shift from banking via personal computer to banking via smartphone begins. 54 million US households accessing bank accounts online. (Online Banking Report, Jan. 2012) RATIO OF POPULATION TO BANK BRANCHES 9.340 Bank branches are consolidating. Ratio of the US population to bank branches shifts from 9.340 in 1970 to 3.684 in 2009. 1970 Branches are increasingly less important to consumers and banking moves to kiosk and online solutions. 2009 3.684 CHANGING CUSTOMER GLOBAL FINANCIAL CRISIS DEMOGRAPHICS AND EXPECTATIONS WITH THE RISE OF GEN Y 70 million people in the US between ages of 15-32 They prefer debit cards, are accustomed to online banking, online purchasing and live a mobile lifestyle Genworth data indicates that over 1/3 of consumers Privacy is not a concern felt some level of financial vulnerability. • Consume info in snack-size and expect instant information/gratification Consumers want help reducing debt and increasing savings. In a survey of 3,000 consumers, 40% said they would benefit from personal finance management tools. (TowerGroup research) Rapidly shifting to mobile banking, 72 million US adults will use mobile banking in 2012 40% Source: Glenbrook Partners GLOBAL USAGE OF PFM TOOLS Number of Users (In Millions), 2011 2011 Online banking goes mainstream. Even late adopters choose to bank online and according to the American Bankers Association (ABA), the majority of Americans aged 55+ prefer online banking over visiting a branch or ATM. CAGR 21.09% 70 62 53 44 33 2010 2011 2012P 2013P 2014P 2012- WHAT'S NEXT? Yodlee's platform touches 35 million people globally. We're entering an era of social banking. There will be a convergence of online banking, PFM, social networking, payments, rewards, mobile, and gaming. PFM will no longer be just a tool, but an experience and a platform for insights and innovation woven into all digital experiences. f/Yodlee YODLEE B /Yodlee

History of Online Banking

shared by Lemonly on Aug 02
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Online banking. It’s pretty awesome and downright handy! But do you know anything about it’s history? We sure didn’t! We got to work with Yodlee on this fun infographic about the interesting his...

Publisher

Yodlee

Designer

Lemon.ly

Category

Economy
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