Banking is one of the main institutions of the world. The oldest bank in the world Banca Monte dei Paschi di Siena, founded in Italy in 1472, shows that they have been around for a long time. In modern times they are the corner stone of our global economy. Most of us only own a house because of them.

You Don't Have A Bank Account!

In our modern lifestyle it is hard to imagine not having a bank account. Most companies now will not pay in cash. Meaning - no bank account, no payday. If you want to buy a house the first place you go to is the bank, for a mortgage, for a cash payment, for a check payment, or for e-billing. Banking is essential for everything. Even most of our shopping is done using credit or debit cards. It wasn't always like this.

Barter

Before this and standard currency, we used a barter system. This system of payment meant that you traded something you had for something you wanted. Although it worked well enough, it was difficult to standardize. Prices would change depending on who was trading and it made taxation virtually impossible. That is why this system as all but died out now being replaced with coinage.

Promissory Notes

Its extinct form is the promissory note. Not dissimilar to the modern check, these handwritten notes promised the designated person payment. They have died out as they are open to fraud and there are much quicker ways of conduction business now, such as debit and credit cards.

The Age Of Plastic

We are now living in the age of plastics. The computer chip on each small credit card can hold all the information you ever need for financial matter. Even physical money is becoming obsolete in light of how successful this easy to use interface is. Banks are now offering more and more services with these cards. But it doesn't stop there.

The Internet Age

Even the mighty credit card could soon be the next victim. As technology advances further, more and more people are opting to use Internet banking, needing only a computer to transfer their money. Although they will still need to have a portable way of paying for things, how soon until the computer in your phone can do so? We already use Bluetooth and other wireless methods of sending data why not use such technology for your banking needs as well?

Fraud

Fraud is the main reason which has changed banking so much over the ages. With each new development, it is not long before people find a way to abuse the system. This leads financial institutions to come up with new, more secure methods of this service. This process will be never ending and who knows what form the next credit card or check will take. You may have a computer chip embedded into your skin that is constantly updated as you make a purchase. The future is unclear but one thing is certain. You will always need some form of financial institution to allow trade to flourish.