Chapter 111: Unsuitable for Collaboration
“What other large banks operate across the Four Kingdoms? Chu doesn’t seem to have any large banks like the Qian Family Bank, right?” Shen Xingnong asked.
“Yes, although Chu’s banks have branches in all Four Kingdoms, people from other countries don’t trust them. No one uses Chu bank notes for transactions. Over time, Chu’s bank notes only circulate within Chu. The Zhao Kingdom’s Qian Family Bank is the most successful, universally accepted across the Four Kingdoms, and most people are accustomed to using it. Next are the Jin Kingdom’s Shen Family Bank and the Yan Kingdom’s Song Family Bank, which are also doing well. The rest are all small banks.”
Shen Xingnong: “Are these famous banks all affiliated with the imperial court?”
“Nominally, they are not. But the people behind all banks have extraordinary backgrounds, mostly imperial relatives and nobles.”
“Chu could actually establish a bank in the name of the imperial court. With the nation as its backing, it would be more trustworthy and could increase the silver available to the national treasury.”
Chu Tiankuo nodded: “Chu has such a bank managed by the Ministry of Revenue. However, compared to the large banks of other countries, it’s far behind. Chu is too weak, and it’s difficult to gain the trust of people from all Four Kingdoms.”
Even if that bank isn’t famous across the Four Kingdoms, it’s still Prime Minister Liang’s cash cow within Chu.
The current Chu is looked down upon by the other three kingdoms, especially Zhao, which is relentless in its pressure and oppression.
His efforts all these years have been aimed at gradually ending this situation.
Only through strength can one avoid being bullied.
This applies to both individuals and nations.
Now, we can consider opening a bank and then target Zhao’s moneybags.
Shen Xingnong spoke at this moment: “I have a method that can help a bank establish itself in the Four Kingdoms relatively quickly.”
Chu Tiankuo looked at her, thought for a moment, and said with a serious tone: “If you’re willing, I can help you open one.”
After all, it’s the same whether he opens it himself or helps her open it.
Help her open it? Shen Xingnong shook her head: “I don’t have the financial resources or the capability for that at the moment.”
Chu Tiankuo: “I do.”
He knew she was no ordinary woman, with extraordinary knowledge and insights.
Those porcelain recipes, each one capable of shocking the Four Kingdoms and bringing in enormous wealth, she treated them as if they were worthless, handing them out in stacks.
Her financial resources were only a matter of time.
“I happen to be planning to open one myself. I’ll provide the silver, you provide the ideas, and we’ll split the profits fifty-fifty. In the future, if you have silver to invest, any profits from that will be entirely yours.”
He could give her his entire share, but if he said that, she probably wouldn’t cooperate.
He realized she collaborated with so many people, but never with him!
Shen Xingnong shook her head; a fifty-fifty split was taking advantage of him. This idea was different from the recipes she gave out. After all, without her recipes, those people wouldn’t have made that money. It was different from the bank idea. This idea would eventually occur to someone, it had no technical complexity. She thought for a moment: “You open it! I’ll tell you the idea. When I have silver in the future, I can invest it, and you can share some of the profits with me. As for collaboration, let’s forget it, it’s not suitable.”
With her current financial resources and capabilities, collaborate on opening a bank? Don’t be ridiculous! Shen Xingnong still had this much self-awareness.
“Okay.”
They were indeed not suitable for collaboration. Anyway, he would give her all the silver he earned from it.
“What’s your method?”
Shen Xingnong: “Currently, when you deposit silver in a bank, they charge a small storage fee every month, right?”
“Yes.” Banks needed to make money, so of course they charged storage fees.
In addition to storage fees, they also lent money to merchants or commoners in need, earning interest.
Among them, the Zhao Kingdom’s Qian Family Bank had the highest storage fees.
“Making a fortune every day” wouldn’t be enough to describe it!
“We’ll do the opposite. We won’t charge storage fees. Instead, we’ll give depositors a share of the silver based on their deposit amount as interest. Interest is…” Shen Xingnong briefly explained the concept of interest.
“Don’t think that this means the bank won’t make money. This approach can attract more people to deposit their silver. Once the bank has silver, will it be afraid of not making money?”
Chu Tiankuo’s peach blossom eyes narrowed: That’s right! With silver, would one be afraid of not making more silver?
Banks inherently relied on attracting the silver of the wealthy and then using that silver to make more silver.
Next, Shen Xingnong analyzed how to set interest rates: fixed-term, demand deposits, etc.
Chu Tiankuo unconsciously took out a silver bead and played with it in his hand, his mind racing.
✿✿✿
Shen Xingnong finished speaking and looked at him: “What do you think?”
“Very good.” Chu Tiankuo felt a surge of excitement, but he didn’t show it on his face. He couldn’t help but add: “Excellent!”
He would open the bank while simultaneously dealing with the Qian Family Bank.
Once he had dealt with the Zhao Kingdom’s Qian Family Bank, their bank could seize the opportunity to rise.
Banks could attract a large amount of silver. With this silver, he could earn even more to improve the lives of Chu’s people and address the nation’s backwardness.
Chu Tiankuo, holding the silver bead, was already envisioning the steps he would take.
Chu Tiankuo: “Do you have any other ideas?”
Shen Xingnong, thinking of something, rested her chin on her hand, tilted her head, and looked at him: “Do you have a lot of silver?”
“It’s alright.” Chu Tiankuo glanced at her. “Enough to support a family.”
Shen Xingnong nodded. Hmm, when someone said “it’s alright,” it usually meant they had a lot.
As for the phrase “enough to support a family,” that was just being modest, not to be taken literally!
He was so good at making money, swindling someone out of two hundred thousand taels in one night, and that was just enough to support a family? Who would believe that!
“With sufficient funds and resources, you could find some powerful partners and open an insurance company.”
Chu Tiankuo looked at her in surprise: “Insurance company?”
What was an insurance company?
He found that she always used strange and novel terms.
It was understandable, just somewhat surprising.
“An insurance company is…”
Shen Xingnong briefly explained.
“…If we really open one, there are many rules and regulations that need to be established, and we also need to prevent insurance fraud. We’ll discuss this later.”
Among all that Shen Xingnong said, Chu Tiankuo grasped one key point: an insurance company could both make money and benefit the people.
Moreover, it would make money from the wealthy to help the poor and needy.
If poor people paid one copper coin per month for insurance, they could seek reimbursement from the insurance company for medical expenses when they fell ill. That way, they wouldn’t have to worry about not having the money to see a doctor!
This was undoubtedly a good deed that would benefit the people!
Chu Tiankuo looked at Shen Xingnong, his peach blossom eyes shining brightly with starlight: she truly had a heart that cared for the people of the world.
Shen Xingnong didn’t notice his gaze, her mind preoccupied with the feasibility of an insurance company in ancient times and how to operate it specifically…
For the rest of the journey, the two discussed the matters of the bank and the insurance company.
From Tian’an City to the capital, it would take half a day at the fastest.
~
Princess’s Residence
Shen Xingqing woke up early and followed Nanny Yang to learn etiquette.
The first thing she learned was posture.
Princess Changle gently said from the side: “Sister, I’ll accompany you. This is quite easy! Let me demonstrate.”
With that, she picked up a bowl of water and placed it on her head.
With a delicate porcelain bowl filled with water balanced on her head, she stood there motionless, not a single drop spilled.
