The concept of banking has been for centuries. Although there are some modifications that have happened in the system over the years. The same as it has happened with the monetary system from place to place. People have moved from spending different kinds of materials ranging from cowries to other ancient objects. Until the invention of currencies such as the coins and paper money that is still in use till date.
Very recently, there has been a development of a special kind of currency. Such a type that people don’t have to carry in their wallets. This is a type of money that nobody will know you have, even if you have tons of it. It is called the bitcoins. This is a type of e-currency. But with the most common type of money, most people believe the best and safest to save it in the bank.
Banks as financial institutions have regulatory bodies. And each bank has its distinct identity. There is a concept of the regions routing number. If you have some special issues with your transactions or with your accounts, it may be required of you to produce this number.
This special number serves as a means of identification for banks. The same way a student will have a matriculation number in a school. You know how abnormal it will be for two students to have same matric numbers. So, also the banks should have their individual numbers.
This code is required for most transactions that you do with the banks. Whether you are to do a direct deposit, electronic payments, or a wire transfer; the identity will be required. If there are any other transactions that you want to do using the bank, it still requires that you use the number. Actually, the routing number regions serve as the identity of the bank.