Is banking the original form of crowdfunding?

Crowdfunding is the practice of funding a project or venture by raising money from a large number of people to fund projects or individuals who support an idea. Crowdfunding has a history traced back to the 1730s and is full of risks and benefits for the creator, as well as the investors¹.

Although crowdfunding has been around for centuries, in the financial world; the use of online platforms to raise funds is fairly new territory for suspicious activities like fraud, money laundering, and terrorist financing. These relatively new crowdfunding platforms do not raise deposits² and consequently, they are not regulated by the FDIC or the Federal Reserve. Since crowdfunding is based on trust, it’s important to note that the Financial Crimes Enforcement Network (FinCEN), and other governmental agencies are working to safeguard the financial system from illicit use. Depending on one’s own interpretation, banking may or may not be the original form of crowdsourcing, however, it is undeniable that deposits (checking, savings, certificates of deposit) kept at an FDIC Insured institution is protected.

Money deposited at greenpenny will help finance clean energy projects. Proof that where you put your money matters to like-minded individuals and businesses taking action to build a more breathable earth. 

¹ Source:
https://en.wikipedia.org/wiki/Crowdfunding#History

² Source: http://files.acams.org/pdfs/2017/Crowdfunding_The_New_Face_of_Financial_Crimes_S.Sessoms.pdf