How Computers Transformed Banking in 60 Years

On 22 September 2026 a 60-year milestone in computing is observed. James Martin, a banking technology veteran, traces the shift from the mid-1960s, when computers were used inside banks for bookkeeping, to systems that now serve customers directly around the world.

Martin points to three conditions that enabled the change: banks running their own computer systems, customers having access to personal computing devices, and secure networks connecting them. He notes that early mainframes sat behind bank walls and were operated only by staff; the spread of the internet, mobile networks and mass adoption of personal devices moved banking services out of branches and into the electronic world.

Once banks digitised back-office functions, they increased transaction volumes, reduced manual work and lowered operating costs. Automation allowed banks to scale account handling and transaction processing beyond what was feasible with paper ledgers. Opening systems to external users then let customers manage money on demand from any location.

External access made outages and operational incidents visible to customers and regulators. “There was nowhere to hide when systems went wrong,” Martin notes. He adds that exposure to the internet transformed banks into regular targets for electronic attacks and raised business and reputational risk compared with the era when systems were isolated.

Technology also enabled payment networks that let credit and debit cards work internationally and supported cross-border transactions subject to regulation. Remote access and video communications have allowed banks to run distributed teams, reduce travel, lower related emissions and maintain operations during local disruptions.

Looking ahead, Martin highlights artificial intelligence as a major trend and urges limits on machine authority over decisions that affect people and the economy. “Just because they can do something does not mean they should do it,” he cautions, and argues that humans must remain ultimately accountable because machines cannot face legal or moral responsibility.

Martin identifies systemic risk as a central concern. He points to shared networks, common infrastructure and widely used software as factors that can amplify failures across multiple firms. He also flags pressure on technology budgets and automated software deployment as sources of self-inflicted incidents, where development or operational mistakes can cascade across organisations that rely on the same suppliers or platforms.

Martin describes the last six decades of computing in banking as a period of large gains in scale, convenience and resilience alongside a new set of threats that change how banks manage technology and risk.