CEO Louise Kelly presented on industrial bank sector at National Association of Industrial Bank Congressional Committee Staff Briefing on May 12th.

Like many Industrial Banks, EnerBank USA fulfills a vital role in providing employment and economic growth through specialized lending products that benefit consumers and businesses, CEO Louise Kelly told staff members of the House and Senate banking committees at an NAIB briefing in Washington D.C. this month. Kelly reported to the Congressional staffers and others gathered on Capitol Hill for the event that with continued support from the FDIC and state regulatory agencies, the Industrial Banks that excel within this sector will continue to provide employment, revenue, and a growing set of unique and valuable financial services to benefit consumers, businesses, investors and the economy at large.

“EnerBank’s model, which relies on the economics of specialization and cost-efficient delivery, would be an unprofitable offering for traditional banks that rely on relationship banking and a variety of profitable services to a single consumer,” she said.

The Bank also issues smaller loans than the traditional bank model. Why are these small, unsecured loans not provided by traditional banks? It’s a matter of specialization, Kelly maintains. Both models benefit the U.S. economy and consumers, Kelly notes. But Industrial Banks—such as EnerBank; Medallion Bank, which finances taxi cab medallions; Pitney Bowes Bank, which finances business postage; or Optum Health Bank, supporting millions of healthcare savings accounts—are able to serve millions of customers throughout the United States by providing financial services and products that otherwise might not be available to consumers, businesses and even government entities.

Specializing in home improvement financing and serving a national market, EnerBank has grown its assets from $14 million to over $1 billion (an average of 40 percent annually) over the past 13 years. Remarkably, the bank offers only one financial product – unsecured consumer installment loans for home improvements. Kelly states that 100 percent of the Bank’s customers are referred by home improvement contractors who have a pre-existing relationship with the bank—thousands of small family owned businesses with excellent reputations and a track record of success.

Like most Industrial Banks, EnerBank USA is well capitalized, has almost no troubled assets, and has thrived before, during, and after the recession, ranking in the top 1 percent of FDIC insured banks in terms of profitability.