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ATM - First Edition
Barclays institutes the first robotic cashier (June 27th, 1967). This first edition of the ATM allows customers the ability to access bank services 24/7. By the end of the 1960s over 1000 ATMs were installed globally, with limited functionality allowing customers to only withdraw cash. This little automated function offered Barclays a competitive advantage by allowing its customers the ability to withdraw cash from their accounts at any time, which was not possible anywhere else. -
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Creation of the Personal Identification Number and the Growth of ATMs
By the mid 1970s over 10,000 ATMs were installed globally. In the 1970's the Personal Identification Number (PIN) was created by a British Engineer James Goodfellow. The creation of the PIN allowed customers the ability to be authenticated with no human to human interaction. -
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Advancement in ATM functionality
In the 1980s the first drive-up ATMs were installed in Louisiana and the number of ATMs installed grows to over 100,000 globally. This advancement, drive-up ATMs, made companies with this function very popular. Drive-up ATMs allowed customers the ease of bank functions from the seat of their own car. No longer would they have to stand in a long line in order to do a simple bank transaction. -
Online Banking - Initial Test
1981 First at home banking was tested in New York City. Citibank, Chase Manhattan, Chemical Bank, and Manufacturers Hanover provided home banking. -
First UK Internet Banking Services
Bank of Scotland utilizes first UK internet banking service (Homelink). Used internet through TVs and Telephones to pay bills and transfer money. -
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The Expansion of ATM and Banking Services
ATMs started to become more accessible by being installed at off site locations, such as gas stations and convenience stores. Banks that offered their services off-site through these ATMs grew in popularity because their customers could now access their money from various spots not only in their own town or city but also throughout their state, nation wide, and/or world. Banks that failed to provide this service lost their customers because of this lack of accessibility. -
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ATM Safety Act
The ATM Safety Act of 1996 provided customers increased security at all ATM locations. The ATM Safety Act mandated that all ATMs have surveillance cameras, reflective mirrors, and locked entry ways. This provided companies a competitive advantage because it made customers fell safe using their ATM services, which we said to be unsafe. -
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Bank Unbundling
Unbundling is where companies, usually online, provide individual banking services (loans, bill payment, etc.) that are usually bundled together. Examples of these companies are Simple, Venmo, Betterment, Kabbage, etc. The increase in these individualized companies comes from their ability to be quick with relatively lower fees. In order to remain competitive in this new market banks must partner up with some of these companies to breed innovation and stay current in the changing market. -
U.S. Internet Banking Services
Stanford Federal Credit Union is first U.S. financial institution to offer internet banking. A year later Presidential Bank offers customers access to their accounts online, starting a trend as other banks follow suit. These banks that started offering online banking services had an advantage over their competitors because it provided their customers access to their account any time which provided them a greater sense of control over their finances. -
First Online Bank is Established
First internet only bank, Netbank, is established. -
Peer to Peer Payments
PayPal was established becoming the first independent online money transfer company. In return for transferring money electronically, PayPal charges a small transaction fee. -
Bank of Internet USA
Bank of Internet USA was founded - visualizing to customers the perks of online banking (higher interest rates, instant accessibility to accounts and transfers, etc.) The perks of online banking made them more attractive to potential customers and gave them a competitive advantage over their competitors -
Internet Banking Breaks into the Mainstream
80% of U.S. Banks offer internet banking. The popularity of online banking explodes because of its great benefits and perks. -
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The ATM a Way of Life
Over 1 million ATMs were installed and in service throughout the world. The average American uses the ATM 6-8 times a month. -
PayPal's Explosion
PayPal exploded on to the scene when it was acquired shortly after its initial public offering by eBay. 70 percent of all eBay transactions were completed through PayPal. -
The Evolution of Internet Banking
Online and mobile banking grew at a rate faster than the internet with the inclusion of new, more advanced services (mobile check depositing, EMV-chip debit cards, mobile banking devices, etc.). Companies with the ability to offer internet services start holding extreme competitive advantages over their competitors. Consumers have the ability to start doing more mobile 24 hour services (mobile check depositing) that delivers immediate account transactions results. -
Rapid Growth of PayPal
PayPal exceeded 100 million users in 190 markets through 25 different currencies. -
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Technological Advances in the World of ATMs
ATMs begin to use video banking and interactive teller ATMs. New advances in ATMs include - voice activation, biometric authentication, and cardless mobile cash services. Almost all functions that a human teller does can now be completed at ATMs. -
The Creation of the Digital Wallet
Google developed the digital wallet. The digital wallet allowed individuals the ability to make payments, earn loyalty points, and redeem coupons. Started with limitations - could only be used on one phone type and by few merchants. -
Apple Pay
Apple released their version of the e-wallet. -
The Effect of Digital Wallets on Banking
Digital wallets are having an effect on banking because more and more individuals are moving towards a third party or other bank that offers digital wallets. More and more banks are now implementing their own versions of digital wallets allowing their consumers the ability to take care of almost any type of transaction at the touch of their fingertip. -
Online Banking is the Norm
Online banking has become the norm and all bank customers expect their accounts to include free online banking. Additionally, many banks have become or started as internet only banks. By being internet only banks they reduce overhead and can offer competitve rates and higher profit margins, 24/7 service, and numerous innovative products and services. Banks that do not offer online banking services are few and far between and customers now do not want to be tied down to in bank services only. -
Introducing Zelle
September of 2017 Zelle was launched. Zelle is a peer to peer payment/money transfer system backed by over 30 major US Banks. Zelle is the answer to such companies as PayPal, Venmo, and Square Cash. Banks that offer this service will draw consumers and have an advantage because transactions between individuals will happen instantaneously due to the cooperation of these 30+ banks and it will be more secure because there is no third party involved.
