The origins of our modern banking system can be traced back almost 800 years to the Italian city-states of the medieval period, when moneylenders would negotiate with merchants or farmers and record their transactions while sitting at benches, or bancas, from which the modern word bank is derived. At the time, each transaction — usually the extension of a credit line — was negotiated between a creditor and a client and tailored to the specific needs of that individual in that moment. The transaction was the heart of the banking relationship.
Over time, however, as the scale of banking operations increased, it became necessary to create a more efficient way of managing multiple transactions, and so the bank account emerged. As banks shifted their attention from the transaction to the account, in the interest of scaling efficiently, they also increased the level of standardization in individual transactions to minimize