The Grand History of Credit

THE GRAND HISTORY OF CREDIT PAYDAY LOAN 01 03 07 10 12 13 14 SHARE 15 02 04 05 06 08 09 11 Temples 10th -12th century Banking systems 12th -14th century Payday loans 1990s Online Banking 2000 Post-2008 Regulations post-2008 Bank of England Pawn-brokers up till 1950s Deregulation of banking 1980s - 1990s Risky Lending early 2000s The Start of Modern Banking The First Credit Card 1966 The Credit Crunch Hawala 5th - 10th century 2008 The Rise of Payday loans 2009-2014 Regulating Payday Loans 2015 1694 1920s Click here for more info 2008 COMPLIANCE BARCLAYS username Banks began expanding their services to include pensions, insurances, loans and credit cards. Compliance ******** RULES HONESTY From ancient temples to online payday loans RESPONSIBILITY Banks found themselves making a huge profit from 'risky' loans; where a This rise in unsustainable lending and personal debt led to an almost total collapse in the %24 person had a dodgy credit record, they could charge a much higher interest. People were also growing used to living with debt, constantly borrowing money to cover their more luxurious, celebrity-inspired living style. BARCLAYS financial industry as banks began to fail, sparking a chain reaction across the financial markets globally. Investors Being used to spending, people often found themselves running short and needed to borrow money until their next paycheck would arrive; payday loans were bon Online banking is introduced and by the year 2000, many customers are managing their acCounts online. You would no longer have to meet with the bank manager or go through such thorough checks in order to apply for credits cards and loans. London's banking systems were declining. To counter this, an agreement was made between started pulling out with a serious impact on Barclay's bank introduced the first credit card into the UK. Known as the Barclaycard, it was the forerunner to all of the credit cards that are in use today. The credit limits were low, and there were strict conditions that had to be met before you could be granted a card. Advertising helped spread the card to millions of people who found themselves able to buy things without Thatcher government and the London Stock Exchange to the stock market. This was the financial crisis For many, pawnbrokers remained the only option for short-term money needs, relax regulations and restrictions in banking and stock exchange. This led to a of 2008, also known as the 'credit crunch'. dramatic boom in the economy, and made it much easier for people to open bank accounts and take out loans and mortages. Modern banking really started to come about after World War One when Click here for more info where they woukd take an expensive item such as a ring or watch and lend money against it, within a specific time frame. If the money plus interest was not returned, the pawnbroker could sell the item. Many new regulations were put in place regarding payday loans resulting in a much higher level of protection for the customer. Banking developed as a way to pay for goods and services and bank notes were introduced in 1661. The currency was quickly followed by the establishment of the Bank Of England in 1694. This was the first of the bigger bank companies formed through mergers and takeovers. However, in order to borrow money, and sometimes even just to open an account, you More and more banking systems were set up as a way for the wealthy to store their money and jewels. One of the more famous ones was founded by the Medici family in Venice in the 14th century would need to prove you were creditworthy and supply references. Borrowing money from the bank was not an option for many people. saving up. The age of instant gratification had arrived. Following the recession, the government looked into its causes and set in place many regulations in order to prevent it happening again. Banks were discouraged from risky lending. This meant that many people were now unable to borrow money. There has since been a steep rise in the number of payday loans and The earliest forms of banks were actually the ancient temples, where central banks and is the banker for the English government. short-term loans issued to people who just need a bit of cash to help them SCROLL To This traditional method of sending money originated in North Africa and the Middle East. The term hawala' means trust - this method is based on trust. merchants would deposit their goods for safekeeping through an unexpected financial crisis from one payday to another. For A to give money to B, A gives it to C and D gives it to B. D now trusts that C will pay him back. EXPLORE OCashFloat the mark et trends VLV