As computers became common in most households, and as the Internet started to become popular, some people had a great idea: why not figure out a way to display your account information through the web? The first online banking websites just gave you the basics: you could check your balance, and see what transactions you had made had cleared your account.

     As the web became more complex and sophisticated, banks added a lot of cool features to online banking: you could now transfer money, pay your bills, reorder your checks, order foreign currency, etc. Online Banking also became more and more secure as new web technologies were developed that kept your information safe from hackers.

How does it work?

     When you log on to do your banking, your computer and the bank's computer system "shake hands" to make sure that there is a secure connection. Then the bank's system identifies you through your username and password that you enter. This keeps you information separate and secret from everybody else's information. You can then get data from the bank's actual computers that keep track of your money. You can move money around to different accounts, pay a bill online and even make sure that a check you wrote has cleared.

     This is all done within a secure environment, so there's no chance that someone could snoop on your account while you're online. Banks have strict rules and regulations about how secure they must keep their customers' data, so breathe easy! Your online bank is just as secure as a "real" bank vault!

Did You Know?

The most popular form of Public Key Cryptography is PGP Encryption, which stands for Pretty Good Privacy