The Evolution of Credit Cards and Online Banking

Modern Credit Cards

Modern credit cards were invented in the 1950s but didn't gain widespread adoption until later. This was due to the development of infrastructure, regulations, and trust in these financial tools. The Fair Credit Reporting Act in 1970 and the Equal Credit Opportunity Act in 1974 established clear rules for fair lending, which helped eliminate discrimination. Over time, consistent regulatory oversight and value-added services built long-term consumer trust in credit cards, leading to their widespread use today.

Online Banking

Internet banking was introduced in the late 1980s but faced slow adoption initially. Concerns around online security, computer literacy, and internet access needed to be addressed. The journey began with United American Bank offering the first home banking service in 1980. New York City became a testing ground for remote services in 1981, with four major banks providing home-banking access. The U.K. followed suit in 1983 with Bank of Scotland launching the Homelink service. Stanford Federal Credit Union revolutionized the scene in 1994 by offering internet banking services to all of its customers. By 2006, approximately 80% of all U.S. banks provided internet banking services. In 2009, the world saw the establishment of its first all-digital bank, Ally Bank. Today, 80% of banking customers globally regularly use mobile banking technology, highlighting the constant evolution of online banking.