Wealth management and business banking help drive modern day ESL

For over 75 years, ESL Federal Credit Union stuck to a traditional consumer banking formula that worked well for the bank, for Eastman Kodak employees and, ultimately, the entire Rochester community.

The expansion of services offered into wealth management in the late 90s and business banking in 2010, as well as a steady increase in branch offices, has subsequently enhanced ESL’s stature in the community.

Thanks in part to ESL’s high market share on the retail banking side, its market share in wealth management and business banking is steadily increasing, too.

That’s because of a strong culture of collaboration and cohesiveness, says Marcelina Nobrega Courtney, senior vice president of retail banking. “We leverage each other’s help and expertise to make sure our customers get the solution they’re looking for,” she says.

Branch employees are proactive and cross trained to identify opportunities with small business customers and investors.

“What sets us apart, it’s not our products, it’s really the collaboration within ESL that doesn’t exist elsewhere,” says Leo Iacobelli, senior vice president of wealth management.

“We have a sense of responsibility that cuts across the organization regardless of what their role is. We do a very good job in general with our clients of uncovering what their needs are,” Iacobelli says.

ESL currently has 22 branches in the area with its 23rd branch set to open in Victor in the fall of 2021.

“We’ll continue to look at other opportunities to expand the branch network depending on what our customers need,” Nobrega Courtney says. “I’m full of pride to be an employee of this company. It’s a good time to be an employee of ESL.”

Business Banking

As Senior Vice President and Director of Business Banking, Keith Cleary says ESL built its business banking operation for the Rochester marketplace to include its smallest business participants.

“We have the lowest loan minimums because the majority of businesses operate with revenues of less than a million dollars, but there are plenty of businesses with over a hundred million, too,” says Cleary. “Our ability to meet people in the marketplace where they want to do business gives us an advantage,” he says.

The ESL business banking department has 30 employees supported by hundreds of branch employees. Today, ESL business banking is approaching a balance of a billion dollars in just 10 years, with over $500 million in business loans and $400 million on deposit.

“It’s a testament to the team we’ve assembled and the openness of the community to doing business with ESL,” Cleary says. The vast majority of the Small Business Administration’s Paycheck Protection Program loans begin in the branches.

Regarding the challenges COVID-19 poses to business owners, Cleary says small business owners are looking for information to help them through trying COVID-19 times and ESL business banking is there to provide it.

“Our role as a bank is to understand business customer needs and be as proactive as we can,” Cleary says. His team is committed to providing PPP loans, CARES Act, and Heroes Act assistance and any other COVID-19 financial relief that is available to its 11,500 business customers. Staying in touch with those customers and making sure they are connected to the right resources is important.

“You can figure it out once you know the landscape,” Cleary says. “Business owners like clarity and certainty. I think knowing what happens with stimulus packages is where we’re focused now so they know what to do during the pandemic. We will pull out of this. We can help make the right plans.”

Cleary says ESL is committed to taking a long-range view of a business customer’s success. “We can’t gauge their success on the last six months. We can take the long-range view and focus on the whole life cycle of a business.”

Wealth Management

Much like its business banking approach, ESL wealth management provides services to all investor levels, regardless of portfolio size, something most financial planning firms don’t do, says Iacobelli. “We don’t just cater to high net worth. We focus on all segments in the market.”

Iacobelli oversees a staff of 60 and $2.6 billion in invested assets.

Seeding business for the future works well in a crowded Rochester financial advisor market. “We spend a lot of time with emerging investors, including many who are young and just starting out,” Iacobelli says. “We want people to remember us as they go through life cycles. The way you do that is by taking care of them right at the onset. We know that in 15 to 25 years they will be very valuable to us.”

The strategy seems to be working since ESL has the highest loyalty score of any local financial management institution.

“People trust ESL. They have a good banking relationship here and they can develop wealth management guidance here,” Iacobelli says.

As anyone who utilizes professional financial advisors knows, their services can be expensive and investors may find ESL rates to their liking. “Our philosophy is we want to be extra fair in what we charge and at the same time make sure that the value of what we’re providing is at least equal to what we’re charging, if not more.”

Iacobelli says the overall financial management experience will improve because of the pandemic. “We’ve had to adapt very quickly. Whether it’s communications or managing cash flow, the promotion and delivery of products will be better.”

ESL and banking services in general have more sophisticated digital driven technology at their disposal today.

“ESL as a whole will continue to help the community and individuals with this crisis and as we come out of it, the consumer should win in the end,” Iacobelli says.

Todd Etshman is a Rochester-area freelance writer.