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Online Banking Report has covered Net banking for seven calendar years beginning with 1995. In that time, we’ve seen the industry go from a premium-priced niche service used by just 1 of out of every 300 households to a mostly free, mass-market offering used by 1 of every 5 households. Following is our updated list of the top 20 online banking innovations of all time. The single new entry for 2001 is #20, real-time balance transfers from NextCard.
#1: May 1995 marked the beginning of the Net banking era; the month Wells Fargo first posted statement data on the Web.
#20: The most recent addition to the top 20: NextCard’s real-time balance transfers with seamless linkage to credit bureau info1.
Top 20 Online Banking Innovations of All Time (North America)
|
Rank |
Date |
Innovation |
|
1 |
May 1995 |
Wells Fargo is first in the world to offer Web statement access |
|
2 |
Oct. 1995 |
Security First Network Bank launches first full-service Internet bank brand |
|
3 |
June 1998 |
LendingTree launches first retail loan auction marketplace |
|
4 |
Nov. 1999 |
PayPal launches first email payment system |
|
5 |
July 2000 |
Citibank launches first bank-branded financial account aggregation service (screenshot right) |
|
6 |
Mar. 1996 |
BayShore Trust (Canada) is first in the world with real-time online loan approvals |
|
7 |
Dec. 1997 |
NextCard launches first credit card optimized for the Net |
|
8 |
Mar. 1997 |
Bank of Montreal launches first real-time mortgage loan approval |
|
9 |
Jan. 1997 |
Beneficial Finance is first in the U.S. with real-time mini-app loan approvals |
|
10 |
Oct. 1998 |
CompuBank launches first Web-based interbank funds transfer system |
|
11 |
July 1996 |
Britton & Koontz First National Bank launches first triggered email alert system |
|
12 |
July 1997 |
E-Loan launches first major Net-only online mortgage brokerage (screenshot right) |
|
13 |
Apr. 1998 |
OneCore launches first pure-play online bank optimized for small business |
|
14 |
Aug. 2000 |
DeepGreen Bank launches first real-time approval, no-doc home equity loan (screenshot right) |
|
15 |
Aug. 1997 |
PeopleFirst Finance pioneers blank-check auto lending |
|
16 |
Aug. 1997 |
River City Bank adds personal finance functionality to its Web site |
|
17 |
Dec. 1999 |
X.com is first with seamless integration of banking and value investing (indexed mutual funds) |
|
18 |
Aug. 1997 |
QSpace introduces first online credit bureau report |
|
19 |
Mar. 1996 |
AT&T is first credit card to offer cardholders specific online fraud protection |
|
20 |
Feb. 2001 |
NextCard launches real-time balance transfer for existing cardholders1 |
Source: Online Banking Report, 12/01 1NextCard’s balance-transfer program is not currently available due to curtailed lending operations mandated by Federal regulators on Oct. 31
#5: Citibank
Citibank’s www.myciti.com account aggregation site is Yodlee’s largest single customer with 486,000 registered users, approximately 25% of Yodlee’s entire registered user base of 2.0 million across 57 clients (as of Nov. 30, 2001).
#12: E-Loan
With a monthly pace of $300 million in closed loans (Nov. 2001), E-Loan achieved pro forma profitability and positive cash flow in Q3 2001, nine quarters earlier than projected in its 1999 IPO.
#14: DeepGreen Bank
Sporting a new look (as of early December) and a new first mortgage product cobranded with Homeside Lending, DeepGreen Bank continues to grow in volume and revenue. It began the year by taking 500 applications in January. By November, the bank was attracting 7,000 applications per month with about 30% resulting in closed loans.
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