In our quest to add more value to our customers, one of the ideas we hit upon was to train relationship managers up to handle the complexities of ESOP lending. Instead of lending to a corporate client, it is more profitable and less risky to lend to the ESOP of that client. Further, few bankers take the time to understand how an ESOP works so competition is limited. Banks can go after existing ESOPs and help refinance their current debt, can work with existing clients to establish ESOPs, or can go after perspective commercial customers and help them establish an ESOP.
If your bank is looking to generate more C&I business or if you are a banker looking to be more valuable to the marketplace, understanding ESOP banking is an excellent way to set yourself apart. To this end, we brought in the law firm of Hunton Andrews Kurth to handle our initial training and help us understand the mechanics and details of ESOP Banking. Below, please find the blog summary, podcast, and video for your edification.
Blog Post Overview: We published our overview and the profitability of ESOP banking in a blog post that can be found HERE.
Podcast: If you want to listen to the audio recording of the webinar, you can find it in iTunes under the “Bank to Bank” podcast (HERE), or you can listen to it below:
Video: If you want to view the full video, complete with audio and the slides, you can watch it below:
Submitted by Chris Nichols on May 23, 2018