A Look at the Origins of Online Lending

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.

---

PayDay & Cash Advance Loans Online ? How Do Online Payday Loans Work?

How online payday loans or cash advance loans work? Online... Read More

Bad Credit Car Loans - Why They Are Easier To Get Than They Ever Have Been

Car loans are easier to get by using an online... Read More

Risk It With A Bridging Loan?

How many times have you been casually going about your... Read More

Secrets & Benefits of Secured Loans

Borrowing money has become more and more popular in the... Read More

Seven Tips For Credit-Enhancing Your Business Loan

What are the avenues available to businesses with weak credit... Read More

Fast Payday Cash Loans

Do you need fast cash to get your car fixed... Read More

Finding a Loan With Bad Credit

No matter what your credit history is the simple fact... Read More

Useful Information About Homeowner Loans UK

Homeowner loans UK are a very versatile type of personal... Read More

A Guide to Finding Cheap Loans

Finding cheap loans isn't always easy? it seems like every... Read More

Finding a Cheap Secured Loan

In a time when everything seems expensive, it might seem... Read More

Christmas Loans ? A Gift on the Occasion of Christmas

It is still a few weeks to Christmas and every... Read More

A Brief History of Loans

No one can say for certain where the history of... Read More

Be Wary of Guaranteeing a Loan

You need to be wary of guaranteeing a loan. What... Read More

What are Personal Loans?

As the term implies, Personal loans are simply loans for... Read More

All About Student Loans

A student loan is an unsecured loan made by lenders... Read More

If You Consider To Get a Quick Cash Loan Then Reconsider It

A quick cash loan also called payday loan, cash advance... Read More

Unsecured Loans ? Substituting Secured Loans

Watching more and more people fall in the trap laid... Read More

No Credit? ? You Will Need a Bad Credit Loan

So you have never taken out a loan? You don't... Read More

Benefits of a Secured Loan

The secured loan is favoured by many UK residents seeking... Read More

Free Money Saving Auto and Home Loan Tips

Free Auto Loan TipsThe following tips should help increase your... Read More

The Basics of Finding a Loan for People with Bad Credit

If you've ever tried finding a loan for people with... Read More

Alternative Venture Finance: Federal Grants and Loans

While most companies seeking venture capital initially think about angel... Read More

What is a Personal Secured Loan?

A personal secured loan is the generic term for a... Read More

Motorcycle Loans For Military With Bad Credit

Motorcycle loans for military with bad credit aren't hard to... Read More

Taking the Time to Find the Best UK Loans

When looking for UK loans, it's always important to take... Read More

Secured Personal Loans: Constructive Structuring for Financial Success

Credit relationships in a social system form an intricate web... Read More

What is a Car Loan?

A car loan is a type of credit offered by... Read More

Shopping for a Payday Loan

You wouldn't consider buying a new pair of shoes, a... Read More

Bad, Credit, Student, Loans - Disjointed They Don?t Make Sense - Join Them and See the Possibilities

The day you stop learning is the day when you... Read More

How To Easily Find A Military Loan

Military members the price for serving your country and defending... Read More

Car Loans After Bankruptcy - Tips to Getting Approved

A car loans after a bankruptcy is one way to... Read More

Cash Advance Payday Loans: Yes The Rates Are Higher!

Typically Cash Advance Payday Loans have no credit checks, and... Read More

Everything You Need to Know About a Secured Loan

If you're not familiar with the term, a secured loan... Read More