You might find yourself wondering about the origins of online lending, and how it has become the major industry that it has evolved into during recent years.
The origins of online lending have evolved from standard lending practices combined with the increased ease and convenience of using the internet for a variety of purposes.
Before you can really understand the origins of online lending, though, you need to take a few moments to understand the standard banking practices that it evolved from and how internet connectivity has helped lending to grow from banks and finance companies to online services that allow you to research and apply for loans in the convenience of your own home.
Lending before the internet
The origins of online lending begin before the word "online" had much of a meaning at all. Before the advent of the internet, and before the "personal computer" was even really conceived, personal banking and lending was much different than it is today.
Loan applications would take several days or weeks to be considered, and several banks in an area might share one or two loan officers who had to travel from bank to bank? meaning that there were only certain days on which you could apply for the loan that you desired.
Keeping track of loan payments could also be a hassle, and mistakes weren't uncommon and often resulted in either overpayment or late fees.
Computers improving communication between banks
Once personal computing became a reality, the origins of online lending truly begin. It didn't take long for banks to realize that these computers could be put to use making both banking and recordkeeping much easier? bank systems could connect via modem and telnet in order to share information, and the records of account holders and borrowers could be accessed much more quickly from a computer database.
Of course, early computing was quite simple by today's standards, and mistakes did happen? but the convenience of the computer systems and the gradual increase in their reliability often made up for the drawbacks and enabled banks to increase both productivity and the ease of the lending process.
Internet banking
Following the origins of online lending, simple networks such as those that banks and other businesses used to connect with each other eventually gave birth to the world wide web of the internet.
As websites for products and businesses became more common, banks slowly but surely began to advertise their services and features via some of these websites.
As internet technologies increased, many of these banks began offering rudimentary account access and other services via their websites so as to stay ahead of their competition? thus was born internet banking.
As technology continued to grow, so did the services offered by banks online; full account access, banking inquiries, and loan applications all developed as the ability to implement them was created.
Online lending
From the humble origins of online lending grew a huge worldwide industry. Lending companies developed that were completely separate from standard banks? with the lower overhead of operating a website when compared to that of running a bank, they are often able to offer competitive if not lower interest rates and can process loan applications and transfer funds faster than many standard banks and finance companies.
Of course, even with the current convenience of online lending services the future may hold additional conveniences and services as internet and computing technologies continue to develop and evolve? meaning that online lending will most likely continue to grow in popularity and will be able to offer more and more services to customers at competitive rates and reasonable terms.
You may freely reprint this article provided the following author's biography (including the live URL link) remains intact:
About The Author
John Mussi is the founder of Direct Online Loans who help homeowners find the best available loans via the http://www.directonlineloans.co.uk website.
If the statistics for the quarter ended April 2005 are... Read More
Here is a useful guide to secured personal loans. A... Read More
Consumers buy a new or used car with poor credit... Read More
Obtaining bad credit loans can be a real challenge. If... Read More
When trying to discover the origins of lending you might... Read More
For those in the market for a loan UK ,... Read More
Listed below are some of the benefits of an unsecured... Read More
Secured Personal Loans are those loans against which you don't... Read More
Have you noticed that everyone seems to have a newer... Read More
A car loans after a bankruptcy is one way to... Read More
Poor credit and a financial emergency don't seem to mix... Read More
Here is a useful guide to fast secured loans. Here... Read More
The Internet has provided a whole new dimension to obtaining... Read More
Military loans are overcoming financial difficulties for army personnel who... Read More
I remember years ago growing up when you needed some... Read More
What will it take for you to get a low... Read More
If you are in a hurry for a payday loan,... Read More
A title loan is a loan of money secured by... Read More
Student loans seem to be the only feasible way out... Read More
Bad credit UK is a term that many people don't... Read More
Why choose an unsecured loan? An unsecured loan can be... Read More
If you find yourself in a situation where you need... Read More
There are a number of different loan products available today,... Read More
The revolution that has affected everyone's financing technique is online... Read More
When borrowing money it is usually because we lack the... Read More
Since the invention of the first self propelled car by... Read More
While looking for adverse credit homeowner loans it can seem... Read More
Government loans are those that the government of a country... Read More
It's possible to receive up to 500 dollars cash overnight... Read More
What is man's greatest invention?Some of the latest gizmos would... Read More
You might find yourself wondering about the origins of online... Read More
Looking for low interest debt consolidation loans can sometimes seem... Read More
In his 1968 seminal novel, 2001: A Space Odyssey, Arthur... Read More
Cash advance loans not only provide you with instant cash,... Read More
Big financial goals, no security to supply - it is... Read More
Because it can sometimes be difficult to find a UK... Read More
Trying to find good UK secured homeowner loans might seem... Read More
Owning a home is the most important dream of any... Read More
Meeting the requirements to get a decent hotel loan from... Read More
Check advance can come in really handy when you're waiting... Read More
What is a Secured Loan?A secured loan is any loan... Read More
A college loan has given people all over the United... Read More
When borrowing money it is usually because we lack the... Read More
FHA loan programs:FHA AccessFHA Cal GoldFHA Rural GoldFHA Mutal Mtg.... Read More
A Payday loan is a small, short-term, high-rate loan. It... Read More
As the name implies, bridge loans fulfill a vital need... Read More
Applying for a payday loan online is a quick and... Read More
You want to raise a business on your own or... Read More
When looking for UK loans, it's always important to take... Read More
With less than a week before she was to receive... Read More
You need to be wary of guaranteeing a loan. What... Read More
If you're looking for a secured loan, there are several... Read More
With UK personal debt breaking through the £1 Trillion mark... Read More
Many banks actively encourage their clients with low balances to... Read More
Have you ever been short on cash? Has an unforeseen... Read More
What are the opportune times to avail of military payday... Read More
Home improvement loans are loans specifically designed by loans companies... Read More
If you've been tossing around an idea for a small... Read More
There are many benefits for choosing a Home Owner Loan,... Read More
Here is a useful guide to fast secured loans. Here... Read More
Here is a useful guide to Bad Credit loans. Bad... Read More
When searching for a payday loan company online to get... Read More
If you have been injured in an accident it is... Read More
Secured Personal Loans are those loans against which you don't... Read More
There are many types of loans available to consumers. There... Read More
Credit Unions have long been known as the place to... Read More
Loan |