Business Tips from a Christian Worldview

A Christian Merchant

Banking Model

Gerald R. Chester, Ph.D.

Unless the LORD builds the house, its builders labor in vain. (Psalms 127:1 NIV)

In the eleventh century AD, merchant banking emerged out of the need to finance the delivery of goods over long distances. These distances took weeks or months to traverse. The associated risks were a great burden for producers. Furthermore, currency was coinage, which was heavy. To manage these problems, transportation companies emerged to manage shipping and finance companies emerged to manage payments.

The finance companies issued lightweight paper notes that were easily transported and could be exchanged for coinage or precious metals by any local participant in the financial network. This was the genesis of merchant banking.

In the latter part of the nineteenth century into the early twentieth century, wealthy individuals began to function as modern merchant bankers. The merchant banking need at that time was different; transportation and payment delivery systems had been developed. These merchant bankers helped young entrepreneurs cultivate their ideas and organizations to implement the ideas. In addition to financial assistance, the new merchant bankers offered counseling and mentoring—that is, discipleship.

Combining wise biblical counsel with capital is a Christian paradigm for merchant banking. In this paradigm success is not primarily measured by financial profit. Success is alignment with the will and ways of God. Profit is the by-product of alignment.

A Christian merchant banker recognizes that God is the sovereign Creator of the universe. This means that he has a will for every person and organization and ways that he wants his will executed.

“But seek first his kingdom and his righteousness, and all these things will be given to you as well” (Matthew 6:33) tells us that God funds his will when it is accomplished according to his ways. Every individual and organization has a divinely defined purpose in the context of his metanarrative—the Christ-centric story of history between the first creation and the new creation. Success is the by-product of building based on the Christian worldview that aligns individual and organizational purpose in the metanarrative. Consider the following diagram: 

In a Christian merchant banking model, everything begins with Christ and builds based on individual and organizational purpose and divine provision of T4 (time, talent, treasure, and technology). This formula reflects the message of Psalm 127:1: “Unless the LORD builds the house, its builders labor in vain.” We must learn to build with God or we labor in vain.

The principle of alignment with God is true success in all dimensions of life. Every Christian should seek to build as a merchant banker—always seeking to facilitate alignment with God individually and organizationally. This is the way to build in God’s universe; it is the only way to blessings and true success.

Here is your business tip. Organizational leaders must be clear about what God is building and seek to build with him. People and organizations are created to fulfill a role in the metanarrative. The challenge is to see our roles and serve the purpose of God by fulfilling our roles according to the will and ways of God. This is the only way to true success in life individually and organizationally. When organizations function this way, they will deliver excellent value and be profitable because they are building with God. Attempting to build any other way will be vanity and failure. 

 

Teaching: Christian Merchant Banking Model

Christian Merchant Banking
 
 

In July: Strategic Life Alignment Seminar Alumni Event

More Biblical Guidance for Finding Your Life Purpose

Strategic Life Alignment Alumni Event

July 22–23, 2022 | Sojourn Church | Dallas, TX (in person and online)

 

Previews: Beyond Babel Training

Biblical Guidance for Building Organizations

Beyond Babel Previews

Ongoing through the Business Roundtable and other venues (in person and online)

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