The 1970s saw the establishment of NASDAQ, the worldвЂ™s first digital stock exchange and SWIFT (Society For Worldwide Interbank Financial Telecommunications), a communication protocol between financial institutions facilitating the large volume of cross-border payments. The start of this phase is marked by the installation of the first ATM by Barclays in 1967, and is characterised by the switch from analogue to the digitalization of finances. It was basic by todayвЂ™s standards, but at a time of developing infrastructure and transportation, the ability to make financial transactions over a more considerable distance was revolutionary. The first transatlantic cable (1866) and Fedwire (1918) in the USA enabled the first electronic fund transfer system using technologies such as telegraph and Morse code. This stage involves building the infrastructure that will support globalized financial services. LetвЂ™s take a look at these eras: Fintech 1.0 (1886 вЂ“ 1967) Each of these three (and a halfвЂ¦) eras saw a distinct level of differentiation in the market that led to changes in the way consumers interacted with their money. FINTECH The History of FintechДЄccording to a paper by Arneris, Barberis & Ross, fintech can be split into a number of different eras. LetвЂ™s take a look at each of the significant stages in the growth of fintech, before taking a look at how it might evolve in the future вЂ“ and the systems and ideas that will drive this evolution. Now we think of fintech in terms of cryptocurrencies and start-up banks, but its roots can be traced back to the late 19th century when money could be moved around by telegrams and morse codeВ вЂ“ though this probably wouldnвЂ™t get many investors excited today.Д«ut there is plenty for investors to get excited about on the market, with $137.5 billion invested in fintech businesses in 2019В meaning that there are a lot of companies out there that are looking to develop the next big thing in fintech. The term only gained traction in the 21st century, but in reality, it has driven how people interact with their money for well over a century. Simply put, fintech is just technology that is used to improve the delivery of financial services. Once we understand the forces that have been driving this change, we are better equipped to know what products and services might succeed over the coming years.Д«efore we delve into the history letвЂ™s first discuss what fintech actually is. With an increasingly cashless society, apps and platforms have been created to help us better understand and manage our finances, while new banks have been created that offer us a slicker experience.But how far back does fintech go?В Has this recent explosion in banking technology come out of thin air, or has it been a more gradual evolution to get to where we are today?Understanding the roots of fintech can give us a better understanding of where it might go in the future. Financial technology (fintech) has been visibly evolving in front of our eyes ever since banks went online.

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