The Impact Of Internet Loans

A young lady is shown banking online on her laptop
The Rise Of Online Banking And Credit
Part 1 The Impact Of Internet Loans
Part 2 Advantages And Disadvantages Of Online Banking
Part 3 What Do You Need To Open A Bank Account Online?
Part 4 How To Apply For A Payday Loan Online

What is the first thing you do in the morning? For many people it is to turn directly to their iPhone, smartphone or tablet, log into Twitter or Facebook and check out what has been happening overnight. In this article we examine:

  • The impact of the internet
  • Constant connectivity and search engines
  • The emergence of internet loans
  • What online banking and credit have to offer

Most people now have fast access to the Internet using a laptop, tablet or a smartphone. This amazing technological revolution has impacted lives in every way possible. So, before looking more closely at the rise in availability of online banking and internet loans, let’s have a quick look at how the Internet has changed the lives of millions.

A constant source of connectivity

Most people who are connected to the Internet now feel that they would not want to live without it. You can easily keep in touch with family and friends and if you want to, you can do all your shopping through this medium. Being online also cuts down on time spent doing tedious tasks like paying bills, banking and taking out internet loans.

The benefit of online lending is transaction speed and efficiency

The Internet gives you instant access to the latest news headlines and it allows many people, who previously did not have a platform, to voice their opinions to their followers and to the wider community.

Social media like Facebook and Twitter have sprung up and these important websites have encouraged millions of people to become active in campaigns that otherwise would not have attracted much attention. Many scandals including the financial crisis of 2008 owe a lot of their exposure to online bloggers and news sites that were not in place before the rise of the Internet. Politicians and other important figures have been exposed to scrutiny simply because the world is now a much smaller place with everyone more closely connected.

Search engines and Google

Years ago if you wanted to find out information about a subject you had to go to the library and consult an encyclopedia. Young people and especially Millennials, find this quite amusing as they have grown up with Google, Yahoo, Bing and all the other well known search engines.

The huge amount of resources on the Internet has opened up the world and has changed the way in which information is shared.

In addition, shopping online has become the model for many people. This is especially true for those who work long hours and who cannot afford time off to browse around shops looking for the ideal gift or latest fashion item.

You can buy tickets for a gig, book vacations, flights and many people use the World Wide Web to promote their goods or services. In fact, many people now work from home with flexible working hours that make a good family life a lot simpler to achieve.

It is so easy to browse the web at home or indeed anywhere. The increase in the ‘Internet of things’, that is, mobile devices like phones or smart watches allow you to get online from almost any location. All you need is access to Wi-Fi and a world of information and assistance is at your fingertips.

A woman is shown using her phone and laptop for online banking purposes

There is so much to appreciate about the Internet. So, with all this in mind let’s now look at the rise of online banking and credit and how this has changed the way in which financial services are provided and sold.

The emergence of internet loans

Starting slowly it took a while for the concept of online lending to catch on but the last 10 years has seen a huge increase in the number of lenders offering products online.

Of course, formal models of lending go way back in history to the Romans and even before that period. And, these were probably the first kinds of peer to peer lending, a model that has recently become popular again.

Online credit in the twentieth century

The first online credit businesses were limited. In the 1980s a company called Quicken Loans decided to speed up the process of home loans by transferring applications onto a computer system. By the end of the century, the First Internet Bank arrived and offered the chance for online applications for credit. In order to keep up with the fast changing financial market place, the mainstream banks quickly followed suit and began to put in place their own online banking systems.

A man is shown using online banking facilities on his computer at home

As banks joined in the new platform for lending and saving, other businesses began to emerge. Peer to Peer lending was amongst the new models and this has proved to be very successful especially for people who had been turned down for a loan by their local bank.

What can online banking and credit offer?

The most often quoted advantages of online lending are the speed of the transaction and the efficiency. Applicants can easily compare credit products and can also check whether they might be eligible before submitting the application.

As more and more people start to make use of online banking and credit, the business looks set to grow and expand. This expansion has also reduced the number of people using traditional banks and so many will undoubtedly close some branches in the future.

The Rise Of Online Banking And Credit
Part 1 The Impact Of Internet Loans
Part 2 Advantages And Disadvantages Of Online Banking
Part 3 What Do You Need To Open A Bank Account Online?
Part 4 How To Apply For A Payday Loan Online

About the author

David Warren

David Warren is an expert on personal loans across the United States. His career in banking has helped make David the loans specialist that he is today. He shares his analysis and insight into the personal finance industry on onlinecreditusa.com