Mr. Inclusive: Arthur J. Morris and the Morris Plan Banks

Arthur J. Morris (1881–1973) was a pioneering figure in American banking, best known for establishing the Morris Plan Banks in 1910. His innovative banking model was designed to extend credit to the average American, a demographic that had limited access to banking services at the time.

Before Morris's intervention, personal loans were primarily the purview of wealthy individuals; average citizens had to rely on loan sharks or other precarious means if they needed credit.
Morris, a lawyer by training, first implemented his idea in Norfolk, Virginia. His system was revolutionary in that it provided consumer credit to working-class individuals based on their character and earning potential rather than their existing wealth or collateral.

The fundamental premise was simple yet effective: loans were granted based on a borrower's ability to repay them through systematic savings and earnings, thus democratizing access to credit (Morris, 1956).
The Morris Plan Banks introduced several innovative concepts that have since become standard in banking. These include the installment plan, where loans are repaid in regular, manageable amounts rather than in a lump sum. This method not only made it easier for individuals to manage their finances but also reduced the risk of default for the bank.

Borrowers were required to have a co-signer and to purchase life insurance that equaled the amount of the loan, ensuring that the loan would be repaid in case of the borrower’s death (Koester, 2016).
The success of the Morris Plan was immediate and widespread. By the mid-1920s, Morris Plan banks had spread across 26 states, with over $220 million in loans extended to 2.5 million customers. Arthur J. Morris’s vision significantly impacted American society, broadening the financial inclusion of the middle class and setting a precedent for consumer banking that persists today (Lewis, 1938).
References

• Morris, A. J. (1956). Banking on the People: The Morris Plan and the Evolution of Consumer Banking. Dodd, Mead & Company.
• Koester, A. (2016). Consumer Credit and the American Economy. Oxford University Press.
• Lewis, P. (1938). Consumer Credit in the United States: A Sociological Perspective from the 19th Century to the Present. Palgrave Macmillan.

Table Of Contents

Chapter 1: The History of Morris Plan Banks

Chapter 2: The Making of a Banking Leader

Chapter 3: Innovative Financial Products

Chapter Four: The Leadership of Arthur J. Morris

Chapter Five: Community Involvement Pioneer

Chapter Six: The Morris Legacy

Chapter Seven: Strong Business Acumen

Chapter Eight: Customer Service Transformation

Chapter Nine: Leader in Philanthropy

Chapter 10: Morris Banks Today