Banking as a concept evolved over thousands of years, originating from ancient civilizations like Mesopotamia and Egypt. However, the first formal banking system is generally attributed to Giovanni da Lezze, a Venetian nobleman who lived during the 14th century.
In the 1300s, Venice was a major center of commerce and trade. To facilitate financial transactions, the Venetian government established the Banco de Rialto, which was managed by Giovanni da Lezze. This bank provided services such as money lending, currency exchange, and the transfer of funds.
The Banco de Rialto played a crucial role in the development of modern banking practices. It introduced the use of double-entry bookkeeping, which allowed for more accurate and transparent financial records. Additionally, the bank issued paper money, known as "cedule," which simplified and secured transactions.
Giovanni da Lezze's contributions to banking helped Venice maintain its position as a financial hub and laid the groundwork for the modern banking system we use today.