A native American Chief goes to the bank for a loan.
As the banker gets out the loan application, he asks the Chief: "What are you going to do
with the money?"
"Take jewellery to city and sell it," says the Chief.
"And what have you got for collateral?" asks the banker.
"Don't know collateral", says the Chief.
"Well that's something of value that would cover the cost of the loan", explains the bank manager.
"Have you got any vehicles?"
"Yes", says the Chief. "I have 1949 Chevy pickup."
The banker shook his head, "How about any livestock?"
"Yes", says the Chief. "I have horse."
"How old is it?" asks the banker.
"Don't know", says the Chief. "Has no teeth."
The banker finally decides to give him the loan, although for a smaller amount than the Chief wanted.
Several weeks later,
the old Chief was back in the bank.
He puts a roll of dollar bills on the counter and says, "I'm
here to pay."
The Chief then gives the banker the money to pay off his
"So you sold your jewellery?" asked the banker.
"Yes, and a lot more too. Look!" says the Chief, and shows the banker a suitcase full of dollars.
"What are you going to do with the rest of that money?"
asks the banker.
"Put under bed in teepee", says the Chief.
Seeing the opportunity to open a new account, the banker suggests: "Why don't you deposit it in my bank?"
"Don't know deposit", says the Chief.
"Well", explains the banker, "you put the money in our bank and we take care of it for you then, when
you want to use it, you can withdraw it."
The old Chief then leans across the desk and asks: "What you got for collateral?"
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Chris M Skinner
Chris Skinner is best known as an independent commentator on the financial markets through his blog, TheFinanser.com, as author of the bestselling book Digital Bank, and Chair of the European networking forum the Financial Services Club. He has been voted one of the most influential people in banking by The Financial Brand (as well as one of the best blogs), a FinTech Titan (Next Bank), one of the Fintech Leaders you need to follow (City AM, Deluxe and Jax Finance), as well as one of the Top 40 most influential people in financial technology by the Wall Street Journal's Financial News. To learn more click here...