National Online Bank Day is observed annually on the second Monday in October, falling on October 9 this year. As businesses increasingly go online, it’s no surprise that banking, too, is following suit. Today, almost every business and every bank has an online presence. We owe much to online banking and technology for the ease we now enjoy in banking services: No more enduring long queues or waiting for days to receive or send money — from paying and receiving bill payments to insurance and investments, virtually everything can now be done online and at the comfort of one’s bedroom. Life without online banking seems unimaginable now, and National Online Bank Day is a celebration of these benefits, which both banks and customers enjoy.
History of National Online Bank Day
Although online banking services launched in the early 1980s, the first National Online Bank Day was observed in 2015. Ally Bank in the U.S. first declared the Online Bank Day to honor their 1 millionth consumer. Later it was decided that the second Monday of every October would be National Online Bank Day.
The first home banking service was offered to consumers in December 1980 by United American Bank. The bank partnered with Radio Shack, allowing bank customers to access their account information securely. Services such as bill payment, account balance checks, loan applications, budget, and tax calculators were made available to the customers.
In the late 1990s, many banks began to view web-based banking as a necessity. In 1996, OP Financial Group, a cooperative bank, became the second online bank in the world and the first in Europe. The reasons for banks leaning toward online banking are fairly obvious: low transaction costs, easier integration of services, interactive marketing capabilities, and other benefits. Online banking services allow institutions to offer more services, thereby bringing in more customers. Banks used the Internet as a way of maintaining their customers and building loyalty. E-banking services were implemented in the mid-1990s. But many consumers were hesitant to conduct monetary transactions over the internet. E-commerce made e-banking popular, by allowing customers to pay or receive payment for goods and services digitally. By 2000, 80% of American banks offered banking services. Online customers proved more loyal and profitable than regular customers. It is believed that almost 47% of Americans do all of their banking online.
National Online Bank Day timeline
The early version of online banking is tested out in New York City.
The evolution of internet banking continues with one of the first truly successful internet-only banks, NetBank.
Bank of America makes history as the first financial institution to gain more than 3 million online banking customers.
At least 80% of American banks offer internet banking.
National Online Bank Day FAQs
Is online banking available 24 hours?
Convenience is a major advantage of online banking. Basic banking transactions such as paying bills and transferring funds between accounts can easily be done at any time of the day and on any day, whenever the consumer wishes.
What are the disadvantages of online banking?
Some of the downsides of online banking are technology and network hitches, cyber security threats, and inefficiency in performing complex transactions.
Can I deposit cash if I choose an online bank?
If your online bank is part of an ATM network, you can deposit cash into your online account via a linked cash machine. You can also consider getting a reloadable prepaid debit card into which you can deposit cash, and link to your online bank account.
How To Observe National Online Bank Day
Perform an online transaction
If you have been putting off a banking task for a while now, National Online Bank Day is the perfect day to get it done. It will only take a few minutes!
Change your password
It’s wise to change your net-banking passwords regularly to ensure safety. Change your passwords or add another layer of security to your online banking account on National Online Bank Day.
Help someone set up an account
Online banking has made life easier for everyone. If you know anyone who doesn’t have an account yet or is struggling with online banking, help them set up an account and teach them how to navigate online banking services.
5 Important Facts About Online Banking
Online banking is a hit in Norway
At least 95% of bank customers in Norway prefer online banking.
India loves to bank online
India has more than 150 million online banking customers.
The world is catching up to online banking
Nearly 40% of the world’s population prefer online banking.
Millennials are the highest online banking population
People between the ages of 25 and 34 are the biggest users of online banking.
Financial fraud is inevitable
An estimated $1 trillion is lost to cybercrime worldwide every year.
Why We Love National Online Bank Day
It has made our lives easier
Online banks have made our lives easier. From checking your balance to accessing loans, virtually every banking activity can now be done online.
It spells innovation
Online banking has changed rapidly in the past few years. National Online Bank Day is also about celebrating all the innovations that the banking industry and its services have undergone through the years.
It is indispensable
Just like a brick-and-mortar bank, online banking has become indispensable. It is quick, efficient, and easy. National Online Bank Day acknowledges the humongous role that online banking plays in our lives.
National Online Bank Day dates