system
Given the following post, respond as if you're commenting on Reddit:
human
ELI5:When did banking go from "knowing the local bankers" and getting loans based on trust to everything being formalized?

My dad, who is 70, told me growing up they'd go to the bank and get loans and deal with items very casually compared to now-a-days when the processed is formalized everywhere.  I would assume the same thing is true with things like hardware stores and auto shops, etc.

When did we go from the more trusting casual version to the more intense process we have today?

Does our style of living have anything to do with it - meaning everyone in the suburbs uses corporate chains instead of mom and pop stores?
gpt
How would you like to not be able to get a loan till you have lived in a city for 10 years and gotten to know the people at the bank personally at church and social events as well as personal interaction going into said bank? The modern world no longer works in that fashion. We live in too large of communities and travel/move far too often for that to work. As such they have come up with a formalized system that ascertains how trustworthy you are to pay back a loan and how much you can reasonably afford to take on. 

Suburbs also rarely have any stores. Suburbs are not the cities and towns absorbed by larger cities as they grown. The Suburbs are the residential housing division built outside the city limits of a city. They never had mom and pop to shop at. Those are things that existed in town, and in cities.