Technological advances in the finance sector not only allow us to make transactions, pay bills and apply for accounts faster than ever before but they also help us keep our money safe. Technological advances come in all shapes and sizes and often become so integral to everyday life that we can often take them for granted. We investigate some of the most ground-breaking technological advances within the banking sector to happen in recent years.

The first major technological advance within the financial sector is the rise and rise of internet banking. Internet banking first stemmed from an invention in the late 80s called videotex where people could send tones down a phone line and administrate their bank account. A system much more similar to the internet banking we know today was introduced in 1983 and was called Homelink. Homelink allowed customers to view their bank accounts via a BBC Micro computer as well as make transfers and pay bills. Online banking as we know it really to shape during the mid 90s and the internet became readily available.

Since security and data protection have become more topical with the rise of internet banking, more advances have involved making the world of finance a more secure place. Using a single password is no longer secure enough for most online banking or e-commerce sites. Recently PINs and TANs have become popular for protecting people’s online accounts and details. While a PIN is a selection of numbers used as a password, a TAN is a one-time password that is distributed using a security token and becomes void after that one particular transaction. In recent years, scams such as phising, pharming and Trojan keyloggers have put people’s passwords at threat as viruses either log the password as it is being entered or users unwittingly give out their details in false forms or email queries.

Technological advances aren’t purely resigned to the world of online. There have also been many developments in how we physically access our money, mainly via ATM machines. Like online banking, ATM machines are also under fire from criminals so need to strike a fine balance between a user friendly yet secure interface. Recent ATM software developments have seen a move towards ‘universal’ ATM machines that allow people of all languages to use the same kiosk while banks can link to and monitor these at all times. Given the rise in thieves tampering with ATM machines in order to trap cards or register their details, many companies have developed discreet cameras allowing them to protect the safety of those using the machine whilst recording any suspicious behaviour.

Harvey McEwan writes about finance and technology.