Timeline of banking technology

In the banking industry, technology plays a critical role in increasing transaction and service
efficiency. Banking procedures have altered dramatically throughout the years as a result of
information technology. Banking transactions have a considerably longer history than you may
believe, dating back to the 11th century with the first paper check documenting a financial
transaction. From wire transfers to checks and credit cards to online and mobile banking, and
now voice banking, banking technology has come a long way. From the 1920s to the present, let
us take a look at a century of the invention.

1871: Wire Transfers

Western Union introduced the first long-distance money transfers in 1871, using existing
telegram technology. Money can be transferred on the same day using wire transfers. Despite the
fact that large-scale data on wire transfers are mainly private, the Federal Reserve's Fedwire
Funds Service reported more than 152 million transfers in 2017.

1950: Credit Card

The introduction of the credit card in 1950 was the first important technological innovation in the
finance sector. Diners Club was the first to develop a universal credit card, a portable payment
option that could be used at a wide range of member establishments. The introduction of the
credit card revolutionized the way people thought about money. They didn't have to carry or
spend money for every purchase anymore. They might now borrow against a line of credit,
which they could repay at a later date. Credit cards, in general, enable consumers to make larger
purchases without depleting their resources.

1967: ATM
The first ATM was presented to the world in the 1960s. Luther George Simjian devised the
automated deposit machine (which accepts coins, cash, and checks but does not disburse funds)
in 1960. On June 27, 1967, UK megabank Barclays established the first ATM in a London area.
Customers were no longer restricted by bank hours or locations when they wished to access their
money with the development of the ATM.
In the 1960s, computers were also incorporated into banking. By replacing the machine
accounting activities employed in each individual branch, the computer centralized the bank's
trade accounts. The idea was that by centralizing accounts, financial institutions would be able to
streamline operations and focus more on customer service. The first digital revolution was
started by the usage of computers. To automate manual procedures, banks began to invest
extensively in computer technology. Electronic payment systems for both international and
domestic transactions were established in the 1970s.

1998: PayPal
The word 'online,' which referred to the use of a terminal, keyboard, and TV to access the
banking system over a phone line, gained popularity in the 1980s when digital technology was
well established. Lower transaction costs, easier service integration, and more targeted marketing
opportunities arrived with online banking. PayPal, a person to person (p2p) money service that
permitted wireless transfers, was offered to customers in the late 1990s. PayPal's development
sparked a slew of similar startups, including Venmo, Popmoney, and Zelle.

2007: Mobile Banking

Although text messaging had allowed for rudimentary banking services since cellphones
emerged decades earlier, the introduction of smartphones, beginning with Apple's iPhone in
2007, introduced mobile banking into apps. People may now manage their finances from nearly
anywhere and at any time thanks to mobile banking. People may now use their mobile devices to
pay bills, check balances, transfer payments, and add new accounts. As individuals rushed to the
convenience and comfort of their mobile devices, the branch experience became secondary for
the first time.

2015: Advancements to Mobile Banking

Users can purchase things in stores using technology like Apply Pay and Google Pay by just
tapping or scanning their cellphones. These platforms also support peer-to-peer (P2P) payments,
which allow users to send money to other users directly. With Apple's Siri in 2011, Amazon's
Alexa in 2014, and Google Assistant in 2016, some of the earliest voice-assistant technology was
released in the early 2010s. Facial recognition was also innovated in early 2011. Some retail
branches and banks use 360-degree-view cameras and facial detection solutions for advanced
detection of potential threats. In 2015, card issuers adopted the EMV chip technology as a
standard. Because the information transmitted is encrypted and tokenized. EMV chips make
cards significantly more secure. It also increases security, which is increasingly important as
payments grow more interconnected.