It’s my final article on banking in the City and so far we’ve covered the great banking families of the 18th and 19th centuries. Those decades were characterised by the ability of bankers to (literally) create nations and broker deals that shaped history across the world. By the time the 20th century arrived, things were a little less glamorous (but no less interesting). This article covers the rise of banking for all, from the preserve of the wealthy to the retail banks that dominate our world today and form a base function that everyone needs.

Up until 1826, joint stock banks simply didn’t exist (save for the Bank of England) – legislation prevented any bank from having more than six partners. This all changed with the Country Bankers Act of 1826 which, bizarrely, allowed joint-stock banks as long as they were located more than 65 miles from London. This meant that the greatest revolution in British banking was largely a preserve of the provinces with the Lancaster Banking Company founded in October 1826 as the vanguard to a whole host of other companies. 

The most notable was the National Provincial Bank with its base in Bishopsgate (Gibson banking hall). The National Provincial has a credible claim as being the first national bank that we would recognise today. It had a head office in London, it focused on providing a large number of small accounts (rather than a small number of large ones). By 1886 it had 165 branches with its impressive head office in Bishopsgate. You can still see that today (it’s now a very impressive events venue, with an incredible counting hall). The National Provincial would end up merging with Westminster Bank in 1968 to become NatWest – the headquarters would, of course, move next door to Tower 42, the first skyscraper in the City. The top of the tower famously echoes the NatWest logo, an example of a union between design and a specific company that I doubt would be repeated today given the commercial property market!

Barclays arrived in 1896 with the creation of a joint stock company (Barclays and Company). The bank itself had links going back far beyond this to various goldsmiths trading in the 17th century – having opened originally at 54 Lombard Street (now a very glamorous New Look). Barclays has always looked towards technology and it’s responsible for the world’s first cash machine in Enfield in 1967. The process for actually withdrawing money looks bizarre after half a century of time – you needed to ask for a special £10 voucher which was processed as a cheque, signed and then the machine would distribute the required monies. Not exactly contactless but people almost instantly began to complain when the machines broke down – which is a fairly good indicator that they were popular! 

By 1914, the banking world was dominated by the big five (Westminster, National Provincial, Barclays, Lloyds and Midland). Lloyds also has a particularly fascinating history. Like Barclays, it originates from pre-joint stock days (in Birmingham) before being converted in 1865.  Its base was in 20 Lombard Street (now a Pret). Lloyds grew by merging – conducting over 50 takeovers in the first half of the Twentieth Century. It invented the “Cashpoint”, the first ATM to use a plastic card with a magnetic stripe (no more special vouchers). One of its more impressive old branches can be found at 39 Threadneedle street. This building was built on the site of St Martin Outwich with a fairly unusual oval plan designed by the more unusually named Samuel Pepys Cockerell (an architect who was the great, great nephew of our old friend Samuel Pepys). 

Midland Bank would eventually merge into HSBC (despite being the largest bank in the world in 1918). Before it did, it occupied the Lutyens designed Midland Bank Head Office next to Bank Station at 27 Poultry. Those regular City goers will recognise the address as The Ned (roof top swimming pool and bank vault bar being new editions). It’s worth a footnote just to talk about the Hongkong and Shanghai Banking Corporation. Founded in 1865 in Hong Kong to help finance the opium trade arising out of the first Opium War it had a particularly difficult Second World War with its chief manager and successor both dying whilst interned by the Japanese. Indeed, the bank’s headquarters in Hong Kong were used by the Japanese military government during occupation. 

The history of British banks in the City is long and chequered. There have been collapses, scandals, nation creation and the creation of an egalitarian approach to the access to money. What is fascinating though is that the City has almost always acted as a focal point for those wishing to raise capital and provide banking services. Be it the coffee houses and localised lending of the 17th century, the hugely powerful brokerages created by individuals in the 18th/19th century or the development of a modern banking system in the 20th. It’s with some sadness that these great banking houses and architectural monuments to that past are now more usually used for drinks receptions of lawyers on the look out for that next piece of work!