Technology is everything, real-time payments as the latest technological innovation poised to shake up retail banking and the whole commercial sector. And yet a paradigm shift of this magnitude relies on a chain of smaller advances, ranging from improved core processing to tokenization and ever more reliable network security. Staying abreast of the latest technologies is a huge challenge, because, for most bankers, technology isn’t their primary job. The timeline on the next few pages captures some of the upheavals bankers have already encountered and hints at even more seismic changes to come. Within the last five years, we’ve seen an influx of new technology such as we’ve never seen before And the advances are going to continue to come quickly.

1. BANKING TECHNOLOGY
In185 Years
By Wind Amiras

2. BANKING TECHNOLOGY
Technology is everything, a real-time payments as the latest
technological innovation poised to shake up retail banking and the
whole commercial sector. And yet a paradigm shift of this
magnitude relies on a chain of smaller advances, ranging from
improved core processing to tokenization and ever more-reliable
network security.
Staying abreast of the latest technologies is a huge challenge,
because for most bankers, technology isn’t their primary job. The
timeline on the next few pages captures some of the upheavals
bankers have already encountered and hints at even more seismic
changes to come.
Within the last five years, we’ve seen an influx of new technology
such as we’ve never seen before And the advances are going to
continue to come quickly.

3. BANKING TECHNOLOGY
Timeline :185 years
1836
With the invention of a pneumatic capsule system
for transporting objects through tubes in 1836,
Scottish engineer and inventor William Murdoch
spawned a new technology in search of an
application.
Pneumatic capsules were first used for
transmitting telegrams, but when the automobile
age dawned, American banks embraced the
invention so customers could withdraw money and
make deposits without leaving their cars. Arguably,
drive-up teller windows were the beginning of a
shift in branch design that accelerated after the
arrival of cash automation technologies
Pneumatic capsule transportation

4. BANKING TECHNOLOGY
Timeline :185 years
1950
In 1950, Diners Club introduced the first universal
credit card, a portable payment solution that could
be used at numerous member establishments.
However it was not until payments became
integrated for merchants at the back end, allowing
the tracking of everything from inventory to total
sales, that popular venues like McDonalds and
Starbucks began accepting plastic for small
purchases.
In 2005, Richard Jaros and Monique Steadman of
Capital One Financial Corp. filed a patent for insta
nt issuance technology; today, banks with this tech
nology can print cards for customers immediately.
The Credit Card

5. BANKING TECHNOLOGY
Timeline :185 years
1950
Artificial intelligence (AI) is not new to banking. If
we consider that the definition of AI is the ability
for machines to interact and learn to do tasks
previously done by humans, the history of AI goes
back to the 50s in the banking industry. Through
machine interaction and learning, natural language
can be processed and decisions made faster and
more accurately than was possible in the past.
One of the outcomes of artificial intelligence is that
machine learning improves over time as more data
is processed and more positive results achieved.
Despite this achievement, and successes in
virtually all industries, banking has taken a more
cautious approach.
Artificial Intelligent

6. BANKING TECHNOLOGY
Timeline :185 years
1967
UK megabank Barclays installed the first ATM in a
London suburb on June 27, 1967. Two years later,
Chemical Bank unveiled the first ATM in the US at
a branch in Rockville Centre, N.Y. calls the ATM
the start of “the quiet revolution of customer
experience. There are network standards
foundations of the rails that enable the payments
ecosystem we know today. Over time, ATMs have
continued to advance. Think of ITMs (interactive
teller machines), which launched in 2013 and
made it possible for customers to talk with a
remote teller via video monitor.
The ATM

7. BANKING TECHNOLOGY
Timeline :185 years
1973
Introduced by computer scientist J.C.R. Licklider in
1973, the US Defence Department’s Advanced
Research Projects Agency Network (ARPANET) is
often credited with providing a vision of how
computers could be networked together.
The internet, has rendered that an archaic approa
ch. And the rise of cloud computing and APIs (appl
ication programming interfaces), both results of AR
PANET’s work, means real-time payment (RTP) pr
ocessing is now within community bankers’ grasp.
FTP (File Transfer Protocol)

8. BANKING TECHNOLOGY
Timeline :185 years
1976
Founded in 1976, Jack Henry is retiring its iconic
green screen terminals on Dec. 31, 2019, to be
replaced by a modern user interface called
SilverLake Xperience. “Banking is moving into the
21st century with graphical user interfaces.
Training new employees is easier on the newer, m
ore intuitive interfaces, which “help the banks gain
efficiencies,” that is because new bank branches a
re typically smaller and staffed by fewer people, “t
hey need a single sign-on or no sign-on interface t
hat employees can quickly get into and serve the c
ustomer’s complex needs.
“green screen” core processor

9. BANKING TECHNOLOGY
Timeline :185 years
1980
Such counters were first introduced in Great
Britain in 1980 and made bank tellers’ jobs easier.
In 1997, cash recyclers appeared on the scene.
the new approach to branch design was spurred
by these secure vaults or safes that accept cash,
authenticate its value, and store and dispense it.
Once large vaults became unnecessary, banks no
longer needed massive physical footprints.
Cash recycling technology made it possible for ba
nks to not have to deliver service to customers acr
oss a teller line. bankers are using the freedom aff
orded by cash automation to spend less time coun
ting money and more time building relationships wi
th customers.
Electronic Cash Counter

10. BANKING TECHNOLOGY
Timeline :185 years
1989
Released by GRiD Systems in 1989 and
manufactured by Samsung, GRiDPad was
considered the first commercially successful tablet
computer.
The tablets have transformed retail banking by
allowing bank employees to move within and even
beyond the branch. Instead of waiting in a line for
the teller to become available, the teller might
come to the door, greet a customer, sit on the
couch with them and serve their needs from a
mobile tablet as opposed to a tethered device
Tablet Computers

11. BANKING TECHNOLOGY
Timeline :185 years
1998
Established as Confinity in 1998, PayPal earned
praise as a user-friendly money transfer service.
On the heels of PayPal came other person-to-
person (p2p) payment innovations like Venmo,
Popmoney and Zelle.
PayPal

12. BANKING TECHNOLOGY
Timeline :185 years
2004
With the Check Clearing for the 21st Century
(Check 21) Act of 2004, a check recipient could
make a digital copy of a check and then process
that check electronically. Check imaging
“eliminated a lot of paper and put a lot of couriers
out of business. Digital checks were the beginning
of a chain of innovations that made payments
timelier.
We’re becoming more of a real-time society.
We’ve been expanding our retail capabilities so
there are more payment options, and they’re faster
and easier. And we’ll continue to press that,
because that’s what’s expected in the world
today.”
Digital Check Clearing

13. BANKING TECHNOLOGY
Timeline :185 years
2007
Steve Jobs unveiled the iPhone at the Macworld
convention on Jan. 9, 2007, and the first iPhone
was released to the public five-and-a-half months
later. Apple Inc. would eventually move into mobile
payments: On Sept. 9, 2014, Apple Pay was
launched, allowing payments to be accepted at the
point of sale from stored and encrypted payment
card information on mobile devices.
The iPhone

14. BANKING TECHNOLOGY
Timeline :185 years
2009
The convergence of digital currency bitcoin, the
explosion of social media and the global financial
crisis of 2007-2009 spurred people to question
norms, Bitcoin is a digital currency
(cryptocurrency) that follows the ideas set out in a
whitepaper by the mysterious and pseudonymous
Satoshi Nakamoto. The identity of the person or
persons who created the technology is still a
mystery.
Bitcoin offers the promise of lower transaction fees
than traditional online payment mechanisms and,
unlike government-issued currencies, it is
operated by a decentralized authority.
Bitcoin

15. BANKING TECHNOLOGY
Timeline :185 years
2010
These devices, which can be plugged into mobile
phones or iPads, allowed very small companies,
from fruit growers at farmers’ markets to
craftspeople at trade shows, to begin accepting
noncash payments.
What’s more, mobile point-of-sale devices were
integrated with cloud-based systems and could
help merchants in innumerable ways—from
tracking inventory to gathering business
intelligence.
Mobile Point=of-Sales devices

16. BANKING TECHNOLOGY
Timeline :185 years
2011
The Panamanian government first installed face
recognition systems in 2011 to reduce illicit activity
in Tocumen International Airport.
A video analytics are becoming a focus for banks
seeking to enhance security. Video analytics are in
use at retail branches to measure foot traffic and
to recognize license plates at drive-through teller
stations, he says. He also notes that some
financial institutions are using 360-degree-view
cameras and facial detection solutions “for
advance detection of potential threats.
Facial recognition technology

17. BANKING TECHNOLOGY
Timeline :185 years
2015
EMV stands for Europay, Mastercard and VISA,
the three companies who originally created what is
now a global industry standard. An EMV chip is a
small computer chip that provides additional
protection from fraud.
The main advantage of chip-based cards is that
the technology used in the card is more advanced
and more secure. Compare to the old magnetic
strips cards that contain unchanging data, making
them prime targets for hackers and counterfeiters
who can easily replicate that data, the EMV chip
on the other hand, creates a unique transaction
code that cannot be duplicated.
The 2015 EMV chip shift