The concept of banking was first introduced in medieval Florence in 1397. A powerful merchant family named Medici established a network of shops that allowed patrons to place money on account and withdraw the money in another city that had a Medici representative. Many powerful families and even the Church kept their money in Medici banks. This allowed rich people to travel without the need to carry large sums of money and risk robbery while traveling. Banking continued to gain popularity throughout Europe by 1700 nearly every country in Europe had some for of established banking.

Modern banking has come a very long way from those humble beginnings in Florence. Banking today covers the entire spectrum of finance from simple savings to credit cards and home loans. Typically, a bank generates profits from transaction fees on financial services or the interest spread on resources it holds in trust for clients while paying them interest on the asset. Banks are even connected electronically so that banking transactions an be made globally in a split second