The Evolution of Banking Over Time

From the ancient world to today’s digital one

By 
ANDREW BEATTIE
 

Updated May 29, 2021

Reviewed by 
KHADIJA KHARTIT
Fact checked by 
YARILET PEREZ
Banking has been around since the first currencies were minted and
wealthy people wanted a safe place to store their money. Ancient empires
also needed a functional financial system to facilitate trade, distribute
wealth, and collect taxes. Banks were to play a major role in that, just as
they do today.

KEY TAKEAWAYS

 Religious temples became the earliest banks because they were

seen as a safe place to store money.
 Before long, temples also got into the business of lending money,
much like modern banks.
 Based on the theories of economist Adam Smith, some 18th century
governments gave banks a relatively free hand to operate as they
pleased.
 However, numerous financial crises and bank panics over the
decades eventually led to increased regulation.