We have already written about bank digitalisation in our FinTech history article. With the help of this timeline, we will dive even deeper into the history of bank digitalisation and see the progress that has been made over the years. Isn't it interesting that the world’s oldest bank, Monte Dei Paschi di Siena, was founded back in 1472, defining a model of banking consisting of branches, cheques, and paper currency that functioned largely unchanged for 500 years?
Let's take a look and identify the key events from the first start of bank digitalization in 1953 to where we are today.
The first bank mainframe was built by the Stanford Research Institute to process cheques for customers of Bank of America.
Barclays in the UK launches the first debit card.
The emergence of the first ATM (automated teller machine) at a branch of Barclays bank.
The Inter-Bank Computer Bureau was established in the UK (forming the basis of today’s Bankers’ Automated Clearing Services).
The US Clearing House Interbank Payments System was established, and Fedwire became an electronic system.
Society of Worldwide Interbank Financial Telecommunications was established.
Call centre focused direct bank, First Direct, launched by Midland Bank.
Banque Direct and ING Direct launch in France. Stanford Federal Credit Union became the first financial institution in the US to offer internet banking to all of its customers.
Wells Fargo began providing online consumer banking.
First internet-only bank, Netbank, is established.
PayPal was established becoming the first independent online money transfer company.
Apple launches the first iPhone.
Global Financial Crisis.
The release of Bitcoin.
N26 gets its banking license. Hello Bank (France), Instabank (Russia) and mBank (Poland) launch.
Google introduced Google Wallet.
Apple pay is launched.
Monzo and Revolut launch in the UK using the Bank of England’s two-step licensing process.
Atom and Starling launch in the UK.
Monzo raises a record £1m in one min 36 seconds funding round.
The first series of open banking propositions hit the UK market resulting in a sharp spike in API calls across incumbent banks.
1953
The first bank mainframe was built by the Stanford Research Institute to process cheques for customers of Bank of America.
1966
Barclays in the UK launches the first debit card.
1967
The emergence of the first ATM (automated teller machine) at a branch of Barclays bank.
1968
The Inter-Bank Computer Bureau was established in the UK (forming the basis of today’s Bankers’ Automated Clearing Services).
1970
The US Clearing House Interbank Payments System was established, and Fedwire became an electronic system.
1973
Society of Worldwide Interbank Financial Telecommunications was established.
1989
Call centre focused direct bank, First Direct, launched by Midland Bank.
1994
Banque Direct and ING Direct launch in France. Stanford Federal Credit Union became the first financial institution in the US to offer internet banking to all of its customers.
1995
Wells Fargo began providing online consumer banking.
1996
First internet-only bank, Netbank, is established.
1998
PayPal was established becoming the first independent online money transfer company.
2007
Apple launches the first iPhone.
2008
Global Financial Crisis.
2009
The release of Bitcoin.
2013
N26 gets its banking license. Hello Bank (France), Instabank (Russia) and mBank (Poland) launch.
Google introduced Google Wallet.
2014
Apple pay is launched.
2016
Monzo and Revolut launch in the UK using the Bank of England’s two-step licensing process.
2017
Atom and Starling launch in the UK.
2018
Monzo raises a record £1m in one min 36 seconds funding round.
2019
The first series of open banking propositions hit the UK market resulting in a sharp spike in API calls across incumbent banks.
In 2020 Neobanks are already posing a challenge to traditional banks as more customers lean toward the convenience of digital-only platforms. Banks are increasingly adopting new technologies like AI to improve their business operations and customer experiences, and Blockchain, as it allows for the decentralization of data storage. With all these emerging FinTech and new developments, banks are likely to continue to partner with third parties that are not banks to offer Banking as a Service (BaaS).
We believe this retrospective look into the past of digital banking will help you understand the long way we’ve come and put into perspective the busy times ahead of us.
