With the world’s technology’s rapid growth and everyone’s hectic schedule, a system has been created to allow consumers to perform banking activities at our convenience, through the internet. This system, otherwise known as online banking, allows consumers to perform all types of routine transactions, like bill payments, account transfers and balance inquiries, anytime, anywhere, as long as internet can be accessed.

1Online banking services started in 1981 in New York when four of its city’s largest banks proposed home banking services using the videotext system. However, these services were poorly received due to the commercial failure of videotext. Two years later, Nottingham Building Society (NBS) set up UK’s first online banking services, based on UK’s Prestel system. In October 1994, the first financial institution to offer online internet banking services to all of its members was Stanford Federal Credit Union.

In Federal Financial Institutions Examination Council’s (FFIEC) recent Interagency Guidance on Authentication in an Internet Banking Environment, it was stated that authentication controls and practices for internet banking was important for financial institutions. 3The institutions are required to prepare an "Internet Banking Authentication Risk Assessment" in first/second quarter of the year which assesses the institution’s internet banking condition, areas which require improvements and how to fulfill these needs. After the risk assessment, institutions are supposed to upgrade themselves with the necessary new technologies so as not to lose out.



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