The History of Banking

By Leslie Simmons

  • Gramm-Leach-Bliley Act of 1999

    Repeals the last provisions of the Glass-Steagall Act of 1933. Restricts the disclosure of nonpublic customer information by financial institutions
    Imposes criminal penalties for obtaining customer information from a financial institution under false pretenses
    Amends the Community Reinvestment Act so that financial holding companies cannot be formed before their insured depository institutions receive and maintain a satisfactory CRA rating. www.fdic.gov/about/history/timeline/1990s.html

  • Bank Mergers

    J.P. Morgan & Company merges with the Chase Manhattan Corporation to become J.P. Morgan Chase, which is another example of the joining of investment and commercial banks. https://www.fdic.gov/about/history/timeline/2000s.html

  • 9/11

    *Enron Corporation files for bankruptcy. The filing becomes the largest U.S. corporate failure in history and is emblematic of well-planned corporate fraud.
    *The U.S. experiences a budget deficit. https://www.fdic.gov/about/history/timeline/2000s.html

  • Sarbanes-Oxley Act of 2002

    Establishes the Public Company Oversight Board to regulate public accounting firms that audit publicly traded companies
    Prohibits accounting firms from providing both auditing and consulting services
    Requires that CEOs and CFOs certify the annual and quarterly reports of publicly traded companies.
    https://www.fdic.gov/about/history/timeline/2000s.html

  • Digital Check Clearing

    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. https://independentbanker.org/2017/10/timeline-180-years-of-banking-technology/

  • Mobile Point of Sale (POS)

    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. https://independentbanker.org/2017/10/timeline-180-years-of-banking-technology/

  • Facial Recognition

    The Panamanian government first installed face recognition systems in 2011 to reduce illicit activity in Tocumen International Airport. Video analytics are in use at retail branches to measure foot traffic and to recognize license plates at drive-through teller stations
    https://independentbanker.org/2017/10/timeline-180-years-of-banking-technology/

  • The EMV Chip

    FiNet’s Brent says EMV chips make cards far more secure because the information transmitted is encrypted and tokenized. Additional security is critical as payments become more integrated, he notes. https://independentbanker.org/2017/10/timeline-180-years-of-banking-technology/