In the late 1800's, a manner of playing the five-string banjo in finger-plucked style came into vogue. S. S. Stewart, a major banjo maker, crusaded to elevate the banjo and its music,. Alfred A. Farland, a banjo virtuoso, appeared in white tie and tails to played recitals of classical music by the great European composers. Vess Ossman and Fred Van Eps, two more leading banjoists played ragtime style.

The mandolin players at the time played with flat picks. In the early 1900's, the idea of playing banjo with a flat pick became increasingly popular. This provided more volume and showier presentations than the finger-plucked style, enabling the banjoist to fit well in jazz bands and vaudeville performances . Out of this new concept grew the four-string tenor and plectrum banjos. The leading exponents were Eddie Peabody on the plectrum banjo and Harry Reser on tenor and plectrum banjos.

The Depression of the 1930s ended the banjo's popularity as not many people were dancing anymore. However, the five-string banjo survived in the southern mountains. It was played there in a manner similar to the early minstrel stroke style, called "clawhammer."

After World War II, a more syncopated five-string style called "bluegrass banjo" was introduced by Earl Scruggs and it has continued to develop through the present day. Not as popular as they once were, the four-string plectrum and tenor banjos are used today in traditional jazz bands .