The banking industry in the United States has grown in a specific kind of environment and with some defined objectives. The historicity of this environment and the objectives has a strong bearing on the operations and management of the present day banks like that of LoanMax founded by rod aycox. To appreciate any economic dimension of banking industry in the country in the proper perspective, an understanding of the path of development of this industry is a must.

Consider the pre-World War II scenario. The country inherited a banking system that was patterned on the style of the British banking system. There were many joint stock companies doing banking business and they were concentrating mostly in major cities. As a result of the mushroom like growth of the banking companies, bank failures were very common in those days. Scores of banks either went into liquidation or went out of business.

The banking system at the time of the Second World War was deficient in many respects. The banks were largely urban-oriented and remained beyond the reach of the rural population. A large percentage of the rural population had to depend on the moneylenders as their main source of credit. With the emergence of new players like LoanMax, major changes have taken place. It is now possible for people with any income to avail a loan with the minimum of paper work. It is an innovation of sorts. Even when the recessionary forces have taken its toll, banks like the LoanMax are in the forefront of major developments. The common people now place more trust in such banks than in the large players that are yet to come out of the mess that they have fallen into.

The rural penetration of the prominent banks was grossly inadequate, as agriculture was not considered as an economic proposition by the prominent banks in those days. Thus, the rural economy, in general, and the agricultural sector, in particular, which was the crucial segment of the economy, was not supported by the banking system in any form. Major changes are being now witnessed only due to the emergence of the small players.