Corporate Banking Redefined
What if corporations with more than 1,000 employees set aside a certain portion of revenue to fund personal banking services for their employees?
This particular portion could be run as a not-for-profit subsidiary of the corporation that would offer certain types of loans with an exceptionally low-rate of interest, in addition to basic banking services. The loans can be offered for a low rate not only as a result of the not-for-profit status of the banking division, but also through a thorough understanding of the status of the person’s employment, i.e., their job security.
As such, the banking services act as incentive to remain employed by the company, and as a competitive recruiting tool with potential hires. It also provides motivation for the employees to increase the productivity, as their financial assets are in part insured by the performance of the company.
Of course, corporate banks offer banking services to their employees already, but this idea is aimed at creating a personal banking division within a company whose primary business is not banking. Imagine being able to cut your loan rates in half, and have all of your basic banking needs met without leaving the office?