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In this modern day and age, we tend to forget those individuals that made breakthroughs in the 19^th Century and early 20th Century. We take their creations and businesses for granted, even though they have stood the test of time, and yet many budding entrepreneurs could learn a lot from them today. A.P. Giannini is one of those individuals and, although he may not be a world famous entrepreneur today, he did have a massive impact on the financial sector. In fact, he founded Bank of America. This is his story.

The Young Giannini

Amadeo Peter Giannini was born in San Jose, California in 1870 to Italian immigrants. His parents worked in the hotel business when Giannini was a young boy and did very well. So much so that they were actually able to buy their own farm, although that was to be the undoing of the family unit. The entrepreneur’s father was killed by one of his workforce in 1877 as a result of a pay dispute. However, Giannini’s stepfather also ran a successful company, but this time a fruit company. Giannini learned many aspects of business from him as he was growing up.

Although the entrepreneur was an excellent student, school did not interest him at all. Instead, he counted down the days until he could enter the world of business. He initially worked for his stepfather and studied business at Heald’s Business College before branching out on his own. Giannini was an accomplished and gifted businessman. As such, he found a way to earn and save enough money to retire at the early age of 30. Not only did he earn a part ownership in his stepfather’s business but he also invested in real estate. However, his retirement was short lived.

The Banking Business

A.P. Giannini began his banking career when his father-in-law suddenly passed away. He had no will and so it was left to the entrepreneur to manage the estate as his son-in-law and only male in the family. A company called Columbus Savings and Loan was amongst the businesses that Giannini was left to manage, and the entrepreneur soon found a way to expand on that business and make an extensive profit. He realized that the business was losing money because it refused small loan applications, and when the rest of the directors ignored him he branched out on his own.

In 1904, Giannini opened the Bank of Italy. He had enough contacts to be able to solicit business and accepted savings as well as loans. He operated the bank in a distinctly British way with deposit and banking slips to retain order. It was undoubtedly a huge success, but that success was to grow as a result of the 1906 San Francisco earthquake. The area had been affected, and so the bank only opened in the morning for business before the fires drew too close around midday. As soon as it closed for business, the entrepreneur removed all of the assets to his home in the country via a horse and wagon. The other banks were unable to open for some time afterwards as a result of the devastation, but it was business as usual for the Bank of Italy.

The Bank of Italy soon became one of the strongest financial institutions in the country. This is largely because it never had to face the economic disaster that other banks did. The entrepreneur recognized the fact that economic problems were on the horizon and took measure to protect it before they arrived. He had a real head for business and was more than able to ensure that the bank was unaffected by the problems. Ten years later, the bank was still prospering because the entrepreneur had turned it into a branch banking system, thus allowing it to grow into a statewide business. Furthermore, Giannini acquired several banks on the East Coast and set about expanding his business, thus renaming it the Bank of America.

A.P. Giannini revolutionized the banking system and undoubtedly affected the way in which banking works all over the world today. His insight into the economy ensured that the bank, and the local economy in many instances, survived. His instinct was invaluable and so demonstrates just what was needed to make a success of business in that time.