The history of banking

The history of banking

Banks have been an integral part of society for centuries. The emergence of banks was meant to happen due to the nature of money as a means of payment for goods and services. Since the ancient times, banks have been providing services to their customers, meaning that they gave out loans and took money in as deposits.

However, as civilization progressed, payment methods followed along with it. Banks had to adapt to the changes and advanced too.

Despite the fact, that in the ancient times, banking services were already available and were provided by merchants and money changers, banks as we know them started to appear only in the fifteenth century. The first true banking institution was Banca Monte dei Paschi di Siena that was established in 1472 in Italy. The bank gave loans to the least wealthy citizens.

Some time later, in the beginning of the seventeenth century, the Bank of Amsterdam came into existence. The bank introduced its own currency named "bank florin". The Bank of Amsterdam took in deposits in various currencies and coins, but all accounting was done in bank florins exclusively.

At the end of the seventeenth century, the Bank of England was established as a joint stock company.

Today, there are multitudes of banks throughout the world in which people can open accounts, deposit money and take out loans. Banking services follow us every step of the way. We come to banks to transfer money to other accounts, get mortgages, open deposit accounts, pay bills, apply for credit and debit cards, and so on.

But until recently, people had to come to bank offices in person in order to carry out a single operation. This was conducive to long lines and significant time losses.

Internet banking is a swift and efficient tool

Online banking has been able to solve the problems of long lines and slow transactions by offering instant access and fast operation processing. The first online banking systems were significantly different from the ones we are accustomed to today. First of all, back then, landline phones were a must. Customers would dial a certain phone number and then use their telephone keypads to navigate through banking procedures. Such services allowed clients to save their time as it was no longer necessary to visit bank offices.

As technologies developed, the format of online banking was going through changes as well. Today, when the internet is widely available, online banking is gaining popularity due to the fact that it offers a fast and easy way to manage bank accounts and perform various transactions.

Most banks offer online banking services to their clients allowing them to transfer and exchange money, pay bills, get detailed information about their accounts and latest operations, pay for cell phone service and internet access, and more. In order to start using internet banking, clients have to complete a quick registration process and create their usernames and passwords. Online banking websites are protected with encryption technologies and SSL certificates to prevent money and personal data theft. Due to the fact that online banking is available at all times and everywhere (as long as you have internet access), such services are becoming increasingly popular.

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