With all the vital services banks offer, it’s hard to imagine life without them. Today, banks help you buy a home, save for retirement, and manage your day-to-day purchases, but these institutions actually played an instrumental role in building the modern world. As societies grew and evolved, banking traditions changed along with them, creating many of the innovative features we take for granted today.

The History of Modern Banks

The Temples of the Ancient World

As ancient civilizations started developing and trading with one another, many developed coins as a replacement to the cumbersome bartering system. Because ancient houses did not have the security systems we’re used to today, many wealthy people decided to keep their cash at the local temple. Before long, these temples also started loaning out these deposits, making them some of the first banking institutions.

The Roman Banking System

The Romans were impressive architects, both of physical buildings and organizational systems. To fund their expanding empire, the Romans took lending and deposits out of the temples and established the first institutional banks. After the fall of the Roman Empire, these financial innovations flourished throughout Europe.

Independent Banks

Throughout the Medieval and Renaissance eras, large banks were mostly controlled by the governments. However, in the late 18th century Adam Smith’s philosophy of a self-regulating economy took hold, promoting ideas about capitalism and competition. These practices spread throughout England and the new United States, where private merchant banks filled the role of a national financial institution.

The Modern Bank

Until the Great Depression, most of the largest banks only worked with commercial and wealthy clients. People who needed mortgages, personal loans, or deposit accounts relied on small local banks, which developed to serve these communities.

With locations in Elizabethtown, Hodgenville, and Magnolia, KY, Magnolia Bank has been serving clients throughout the community for over a century. They’re proud of their commitment to providing old-fashioned service, combined with the latest technological innovations. Visit their website to find your nearest location, follow their Facebook for news and banking tips, or call (270) 358-3183 to reach their main office in Magnolia.