The Evolution of Fintech
1865 The pantelegraph, invented by Giovanni Caselli, starts operation between Paris and Lyon, France. It is most commonly used to verify signatures in banking transactions.
1866 The telegraph is introduced in 1838, followed in 1866 by the laying of the first successful trans-Atlantic cable, which provides the infrastructure for financial globalization.
Late 1800s Consumers and merchants exchange goods using credit for the first time, in the form of charge plates and credit coins.
1918 The Fedwire Funds Service is established by the Federal Reserve Banks to transfer funds and connect all 12 Reserve Banks by telegraph using a Morse code system.
1919 The economist John Maynard Keynes writes about the link between finance and technology in the book “The Economic Consequences of the Peace.”
1950 Modern-day credit cards are introduced starting with Diners Club, founded by Frank X. McNamara.
1960 Quotron Systems introduces the Quotron, the first electronic system to provide selected stock market quotations to brokers through desktop terminals.
1966 The global telex network is put in place, providing the communications necessary for the next stage of financial technology development.
1967 Barclays bank introduces the first automated teller machine (A.T.M.), it calls a “robot cashier,” allowing customers to get cash around the clock.
1970 The Clearing House Interbank Payments System, or Chips, is established to transmit and settle payment orders in American dollars for some of the largest and most active banks in the world.
1971 The Nasdaq — National Association of Securities Dealers Automated Quotations — is established in the United States. This signals the end of fixed securities commissions.
1973 The Society for Worldwide Interbank Financial Telecommunications, or Swift, is established to solve the problem of communicating about cross-border payments.
1982 The first online brokerage, E-Trade, is founded. It executes the first electronic trade by an individual investor.
1983 Online banking is introduced in Britain by the Nottingham Building Society. (It was introduced in the United States in 1980 but abandoned in 1983).
1984 The world’s first online shopper, Jane Snowball, uses a Gateshead SIS/Tesco system to buy food from Tesco.
1984 The newly formed company Intuit establishes Quicken, marketed directly to consumers primarily as a check-writing program.
1987 The “Black Monday” stock market crash has consequences on markets around the world, showing how the markets are interlinked by technology.
1993 Financial technology is coined as a term, coinciding with the creation of the Financial Services Technology Consortium, established by Citicorp in 1993.
1998 A majority of banks in the United States set up the first transactional websites for Internet banking.
2009 Version 0.1 of the cryptocurrency Bitcoin is released and includes a generation system intended to create 21 million bitcoins through 2040.
2011 Google establishes Google Wallet, which allows consumers to use smartphones equipped with a near-field communication chip to make “tap payments.”
2015 This year, for the first time, more people use mobile banking than those who avail themselves of a physical branch.
2015 The Chinese e-commerce giant Alibaba, led by Jack Ma, announces “smile to pay,” which enables consumers to authenticate mobile payments by scanning their face with a smartphone.