People have long stored food and valuables for later use. As cash came into wider circulation, citizens needed secure storerooms for it. In time, they deposited their cash in these depositories, paying service fees for their peace of mind. In this manner, the banking business was created.
Silver and gold were widely circulated because of their unalterable properties and the convenience they provided for paying debts and facilitating trade.
As entrepreneurs expanded their operations beyond their own shores, they encountered dozens of currencies with differing weights and purities. Clearly, there was a need for a currency exchange service. Early bankers responded with facilities for debt payments, deposits, loans, and settlement of invoices. Banking grew to meet merchants’ needs.