A Brief History Of Banks | Financial Reform

A Brief History of BANKS Banking is believed to have existed for around 5,000 years. The first banks would have taken deposits of grain and cattle and eventually precious metals like gold. UK BANKING MILESTONES 1st Century Banking brought to Britain during ROMAN CONQUEST, with the underlying concept "to receive deposits and advance credit". 17th Century MID 1660s 1659 J659 Emergence of GOLDSMITH BANKERS The EARLIEST KNOWN OCHEQUE was who store imported drawn up. However, the concept of a merchant gold in return cheque has been around since ancient for a fee. banking systems. 1694 THE BANK OF ENGLAND is formed, originally to be the government's banker and debt manager. The role of the Bank has since evolved to include the setting of monetary policy and soon, overall regulation of the UK's financial system. 18th Century 1775 FIRST RECOGNISED BUILDING SOCIETY is formed and three major banking sectors have by now emerged: CLEARING BANKS (now Retail or High Street Banks) MERCHANT/INVESTMENT BANKS BUILDING SOCIETIES and other FINANCIAL INSTITUTIONS 20th Century LATE 1960s 1950s THE "BIG FIVE" Banks now offer CHEQUE GUARANTEE CARDS and ATMS spring up. EMERGE: ATM HELLO cash widthdraul deposit Obalance enquiry Lloyds UK Corune National Provincial Barclays Midland Natwest/RBS Westminster transfer now now HSBC 1971 MONETARY REFORMS encourage banks to become more competitive and a wider range of services become available: 1980s INTERNET BANKING begins, but isn't widely used until the mid 90s. • savings accounts • credit cards + • personal loans • home loans, PRY NOWu 21st Century 2007-2010 CREDIT CRISIS HITS Northern Rock is first institution in 150 years to have a BANK RUN. VQUANTITATIVE EASING (money-printing) introduced in attempt to ease crisis. Banks get BAIL-OUTS TOTALING £117 BILLION. TODAY ETRO BANK 3 MILLION BRITS now use FIRST NEW HIGH STREET BANK SMARTPHONES since the late 19th Century is formed. Metro Bank promises 'more relaxed, 7-day banking'. to check their bank accounts. FOREIGN BANKS grow in popularity in the UK, such ICICI and3 Bank of Baroda. as Indian banks The Future • CHEQUES PHASED OUT by 2018 • CONTACTLESS CARDS become the norm • ETHICAL BANKING: Sharia banking more mainstream WILL BANKING BECOME EASIER? Personal finance management websites could revolutionise our relationship with money, recommending financial products based on our own needs and the best rates and deals available at that time, without us having to do any of the leg work. W Design/llustration by waltonportfolio.com Confused.com