Loader Icon

FinTech: A Brief History of Financial Technology

Financial technology, usually shortened to FinTech, is one of the oldest pairings of domain specific knowledge and computing. It’s origins can technically be traced back to 1918 when the US Federal Reserve Bank first developed Fedwire Funds Service. The service made it possible for the transfer of funds between the 12 Reserve Banks, the Federal Reserve Board, and the U.S. Treasury by telegraph using Morse code. Needless to say, technology has developed quite a bit since then.

Digital Banking and Trading

Computing in the mid-20th century brought huge changes to banking. In 1950, Diner’s Club introduced the first credit card , and in 1967, Barclays Bank installed the first ATM machines. The two inventions were huge. The combination of easy-to-carry cards and widely available ATMs allowed for the quick, mobile transferring of funds. But things weren’t just changing for consumers.

While credit cards were catching on, the stock market was beginning to undergo a digital transformation of its own. Quotron, the first dedicated financial technology company, began selling terminals that displayed stock quotes on electronic screens instead of printed ticker tape. Gaining traction in the early 1970s, the Quotron terminals greatly impacted the speed of which brokers could obtain a quote. Instead of waiting throughout a lengthy printing and manual communications process, brokers could receive a by-the-minute update right in front of their eyes.

Online Banking and Payment Systems

The 1980s brought several major changes to fintech, revolutionizing the industry and forming the bases for the ways in which the modern financial sector operates. The first was instantiated by the company TradePlus, now known as E-Trade, in 1982. The company became the first online stock brokerage firm. It still serves customers to this day.

The second innovation was the introduction of online banking a year later in 1983. Although online banking is the norm today, at the time, there was limited access. Several companies tried their hand at online banking, they mostly scrapped the idea throughout the next decade. A bit ahead of its time, online banking is now the preferred method of transferring funds.

Modern Trends

Modern trends in fintech revolve around modern technologies. The most prominent and impactful of these are the use of data science and artificial intelligence technologies. AI forecasting methods provide to-the-second forecasts to help traders maximize gains. Additionally, predictive analytics give insights and judge risk of potential borrowers. These techniques are so valuable that in 2018, organizations invested $59.5 million globally into new technologies. The huge demand points to an increase in financial automation in the years to come. Whatever innovations come next, it’s certain that they will be cutting edge and likely immensely profitable.

For more articles and updates, please visit our blog here.

To learn how our data science services can support your financial enterprise, please follow the link here.

Project TypeIndustryLocation
CISDM Support/Business Requirement Service/Quality AssuranceSmall BusinessBaltimore, MD

Trending Post

VOX Solutions – Infrastructure Services
March 7, 2023

VOX Solutions – Infrastructure Services

Project Description VOX Network Solutions is a telecommunications company that offers converged voice and data services . It provides consulting, contact center, collaboration, network, security, managed services and a prescriptive process methodology to businesses. Project Objectives To provide Avaya IVR system and its infrastructure support to Vox Network Solutions on an ongoing basis as per the business needs. Detail Description The provided Avaya IR system is an interactive voice response...

Casestudy
PIPAC Life – Web Design, Development and Maintanance
March 7, 2023

PIPAC Life – Web Design, Development and Maintanance

Project Description PIPAC is an established and experienced nationwide Health and Life insurance brokerage company founded by an agent for agents. PIPAC has 40 plus years of industry experience, carrier and agent relationships with a strong belief in doing the right thing. Agents describe the PIPAC team as friendly, responsive, detailed and totally service oriented. Project Objectives Given their business is delivering insurance packages that are custom made for the...

Casestudy
Calpine Corporation Integration Project
March 7, 2023

Calpine Corporation Integration Project

Project Description Calpine Corporation is the largest generator of electricity from natural gas and geothermal resources in the United States, with operations in competitive power markets. A Fortune 500 company based in Houston, Texas, the company is owned by an affiliate of Energy Capital Partners and a consortium of other investors. Project Objectives The business was looking for cloud architecture and integration for their existing applications. The cloud integration was...

Casestudy

Trending Post

Conquering DevOps Challenges: How ePathUSA Drives Seamless Transformation
October 18, 2024

Conquering DevOps Challenges: How ePathUSA Drives Seamless Transformation

In today’s digital-first world, the pressure to deliver software faster, with fewer errors and greater scalability, has given rise to the widespread adoption of DevOps. This powerhouse combination of development and operations promises speed, efficiency, and innovation. Yet, as businesses jump on the DevOps bandwagon, many quickly realize that it's not always a smooth ride. DevOps success isn’t just about deploying new tools—it’s about overcoming challenges that impact culture, process,...

Cloud Computing
Transforming Legacy Systems: Overcoming Modernization Challenges
October 11, 2024

Transforming Legacy Systems: Overcoming Modernization Challenges

Legacy systems have long powered the core operations of many businesses, but as technology evolves, these older systems can become a roadblock to growth, agility, and security. To stay competitive in today’s fast-paced, tech-driven world, organizations need to modernize these applications. Yet, legacy application modernization is no easy task. It’s a complex process filled with challenges that can be overwhelming without the right expertise. This blog explores the key challenges...

Cloud Computing
Fortify Your Cloud: Secure, Protect, and Scale with ePathUSA
October 10, 2024

Fortify Your Cloud: Secure, Protect, and Scale with ePathUSA

In today’s digital landscape, your cloud environment isn’t just a tool—it’s the backbone of your business. However, with the rise of cyber threats, your cloud’s security can either be its greatest strength or its biggest vulnerability. If you’re relying on cloud solutions without robust protection in place, you’re leaving the door open to hackers, data breaches, and potentially devastating financial losses. So, what can you do? ePathUSA is here to...

Cloud Computing

Trending Post

ePathUSA Secures DHSS Contract for Legacy Website Migration to WordPress
September 11, 2024

ePathUSA Secures DHSS Contract for Legacy Website Migration to WordPress

We're excited to announce that ePathUSA Inc. has been awarded a contract By Delaware Health & Social Services (DHSS) to support migration of existing website into WordPress! The project will focus on a lift-and-shift of the legacy website, part of our digital transformation initiatives. Our team has already hit the ground running on this exciting endeavor and working with exceptional team at DHSS. This win not only demonstrates our commitment...

ePATH News
Highlighting ePathUSA, Inc. at the CDC/HHS Small Business Conference in Atlanta, GA!
April 4, 2024

Highlighting ePathUSA, Inc. at the CDC/HHS Small Business Conference in Atlanta, GA!

Delighted to have the opportunity to showcase ePathUSA, Inc. at the CDC/HHS Small Business Conference in Atlanta, GA! Being part of this remarkable event dedicated to bolstering small businesses is truly an honor. I relished absorbing valuable insights, connecting with fellow entrepreneurs, and delving into fresh avenues for growth!

ePATH News
ePATHUSA’s Trailblazing Year: Celebrating 2023 Triumphs and Paving the Way for a Visionary 2024
January 24, 2024

ePATHUSA’s Trailblazing Year: Celebrating 2023 Triumphs and Paving the Way for a Visionary 2024

As the calendar turned to 2023, ePATHUSA embarked on a journey marked by resilience, innovation, and success. This blog post delves into the notable achievements of the past year and outlines the visionary goals that will shape the company's trajectory in 2024. A Year of Triumphs (2023): Contractual Victories: ePATHUSA celebrated a remarkable milestone by securing five new contracts, a testament to its unwavering commitment to excellence. Among these victories...

ePATH News