BANK of Bird-in-Hand sounds like a prudent name for a lender, perhaps suitably for the first bank to be founded in the aftermath of the financial crisis. Its name is no marketing ploy, however; it is merely taken from the southern Pennsylvania town that is home to this one-branch outfit. What really marks the bank out is the clientele it caters to, the local Amish community, a religious group sceptical of modern technology and, it turns out, a rather good credit. Since opening in 2013, Bank of Bird-in-Hand has never had to write off a loan.
Bill O’Brien, one of its founders, claims this is no coincidence. Though he is not Amish himself, Mr O’Brien has been lending to farmers in this traditionalist community since moving to the area 26 years ago. Many know his phone number and call him directly when they need a loan (phones are forbidden inside Amish homes, but communal phone shanties can be used to conduct business). Others prefer to use the bank’s drive-through window, large enough for a horse and carriage.
Losses are rare because loans extended to the Amish community are well...
from The Economist: Finance and economics http://ift.tt/1hsrsDU
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