History of banks from antiquity to today

The need to save and keep one’s money safe has always been felt, as well as the custom of borrowing sums of money. The bank was created precisely to perform these two functions: to keep savings on deposit; lending sums of money to be repaid, later, with a surcharge (what we now call interest).

Over the centuries, the History Of Banking has been characterized by continuous evolutions, also a consequence of the socio-cultural changes of each historical period.

The history of banks in 5 stages

Here are the breakthroughs in the The History Of Banking, those that have transformed credit institutions over the years up to the present day.

Sumerians, Greeks and Babylonians are known for the wonderful temples that held essential treasures. However, not everyone knows that the priests of the temple used to lend the proceeds from the offerings of the faithful. Furthermore, they were the custodians of the gold and silver reserves, which were also lent with the provision of interest.

With the birth of the coin, the figure of the money changer was born. The trapezius (because the counter behind which they carried out their business was called, in fact, trapeze) worked near the main trading places (ports and markets), also granting loans.

Middle Ages

The Middle Ages saw the birth of private banks by commercial companies that used their profits by lending them. At the same time, the first form of check begins to be used: actual letters of credit that avoided carrying money with them (today, we would say “cash”). Thanks to this activity, the first bankers began to be so successful that their wealth grew more and more. One of the most important banking companies was the Banco de Medici, whose services arrived, among other things, in Nice, Geneva, Tunis, London, and Mallorca.

Nineteenth century

Following the industrial revolution, there was a growing need for more and more capital to allow new industries (including textiles and steel) to expand. At the same time, we are observing the phenomenon of the so-called bank deposits: the banks turn to a select clientele belonging to high society, whose capital is managed by the banking institution.

From the twentieth century to the modern-day

The Great Depression of 1929 influenced the evolution of the banking system. It is precisely in these years that the distinction between deposit banks and investment banks was born, the latter being characterized by the granting of medium and long-term credit. In addition, central banks play an increasingly important role, and international relations develop between the various banking institutions. In recent years, thanks to technological evolution and globalization, the History Of Bank has been marked by numerous innovations: internet banking services, trading, online payment services directly from your account.

Among the innovations that have transformed the way customers interface with the bank, we must also mention the innovative banking apps integrated with voice commands and biometric recognition. New digital payment systems, such as Apple Pay, Samsung Pay, and Google Pay, are also revolutionizing how money is transferred through smartphones.