[2] The term derives from the Lombard merchants and bankers from Northern Italy who systematized and expanded these lending techniques in medieval European trade networks, particularly in the regions of Lombardy and Tuscany.
The wealthy cities in this region were the birthplace of modern banking, and many Lombard bankers became notable in the Middle Ages throughout Western Europe as financiers, moneylenders and pawn-brokers.
While Lombard merchants were innovative financial actors in medieval Italy, they didn't uniquely "invent" secured lending.
Similar practices existed notably in ancient Mesopotamian civilizations, Roman financial systems, and Islamic banking traditions.
The term "Lombard" became a generalized descriptor for sophisticated financial practices associated with Northern Italian merchant banking, more than a literal invention claim.