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The History of Banks | How They've Changed through the Years
Banks Between The 17th And The 19th Century
- London was where the biggest action was in the banking world, with the Goldsmiths of London being the first proper bank. Services like vaults, bank debts, deposits (made inside the bank) and loans became popular.
- Banknotes were first offered by the Bank Of England and were called promissory notes. Soon other services like cheques and overdrafts followed.
- The Rothschilds started their financing business in the 19th century, eventually becoming the richest family in history.
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The Earliest Banking Systems
- The earliest banking systems date back to 8000 BCE when trade was recorded in a log, keeping a written note of the transactions.
- Mesopotamia was the home of the first proper banks, with lending activities in temples and palaces. As cash wasn’t invented yet, seeds and the produce of farmers was used.
- Records of credit exist in the Asian civilization, hinting at banking activities.
- The Temple of Artemis was a deposit for cash and there were records of debts held there.
Banking Systems In The Medieval Period
Brokerage and loans started in an advanced form with merchant banks, though crop loan was still used for lending and credit activities.
Italy was the home of the earliest banks (which evolved into the modern banks), and even the word ‘bankrupt’ comes from the Italian word ‘Banca Rotta’.
Banks Between The 17th And The 19th Century
- London was where the biggest action was in the banking world, with the Goldsmiths of London being the first proper bank. Services like vaults, bank debts, deposits (made inside the bank) and loans became popular.
- Banknotes were first offered by the Bank Of England and were called promissory notes. Soon other services like cheques and overdrafts followed.
- The Rothschilds started their financing business in the 19th century, eventually becoming the richest family in history.
Banks In The 20th Century
- Post-WWII, banks started lending money to other countries (like World Bank) and retail banking flourished across the country.
- Technology started being a part of banking with SWIFT payments and ATM machines coming in the picture.
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