Jesse Torres

For my nearly four years here, the recognition from the community has been amazing.  We’ve received countless awards from foundations, nonprofits, elected officials, and others that have recognized our commitment to the community.  We’ve walked the talk and put our money where our mouth is.  It has been amazing and extremely humbling for myself, my staff, and our Board of Directors.  And for that I thank all of you that have played a role in making Pan American Bank the model community bank!

My emails to you are usually about getting you to help me help others.  Today my email today is about asking you to help Pan American Bank.  The best part is that very little effort is needed on your part, yet the benefit can be substantial. 

A little background…our bank offers small businesses and nonprofits the ability to accept credit cards.  You are very familiar with the concept.  We call it “merchant processing” in the banking business.  As you also probably know, merchants are charged a percentage of the transaction (usually between 1% – 3%, depending on the type of transaction).  It is a cost of doing business.  So whenever you buy something at a store and use your debit or credit card, the business owner is charged a small fee for the convenience ofbeing able to accept your card.  The bank receives a very small percentage ofthis fee - most of the fee goes to Visa, Mastercard, and the owners of the computer networks that process the transactions in a blink of an eye.

Here’s where the “Making a Difference” part comes into play.  For years Pan American Bank has supported numerous scholarship programs for east side students.  Back in the day we actually provided “full rides” to a small numberof students seeking careers in finance!   In recent years the costs ofpreviously affordable state universities and community colleges has increased dramatically, creating an even greater need for local support.  At the same time, the costs associated with running a small community bank have increased (lots more regulation+lots more competition=lots more costs!).  Despite the increased costs of running a bank, the Bank’s Board of Directors asked me to find creative ways to continue to be a true resource to the community and continue to fund, or even increase funding for scholarships (it helps that one of our directors is a former college president!).  That’s what this email is about.

So my ask of you is this….please refer to me merchant processing business.  It does not matter if the referral is your business, your employer’s business,you nonprofit, etc.  Together we can create a new funding source to not only grow maintain or grow scholarships, but also support other programs such as financial literacy initiatives, etc.  By growing our merchant processing business the Bank creates a revenue source that can be used to offset growing expenses in other areas in order to continue to fund scholarships and other programs.  In order to appeal to business owners, the Bank’s Board ofDirectors has committed to donating 10% off the top (before accounting for costs of the program) of the merchant processing revenue to scholarships.  That can make a tremendous difference in the lives of our students.

My first day in Economics 1 I learned a very simple but powerful fact: consumers vote with their dollars.  I never lost sight of the concept.  For the past three and a half years consumers, nonprofits and other stakeholders have voted for the Bank with beautiful humbling accolades.  And we have loved it!  Today, as small business owners, nonprofit executives and influencers, I am asking you to vote for Pan American Bank with your transactions.  

I ask that you appeal to your bosses, your boards, your friends, neighbors, and anyone else you run into that processes credit cards.  I’ll let you in on another banking insight – its all the same service and runs on the same networks, regardless of who sold the merchant processing business.  Anyone that says otherwise is either uninformed or being less than honest.

Given that the service is essentially identical, in order for this to make sense the business must have a compelling (read: financial) reason to move the merchant processing business over.  We understand that so we will analyze three months of credit card processing statements to ensure that we can save the business or nonprofit money.  If we can’t we’ll say so.  But in most cases we will be able to help the business while the business helps as well.  

For most businesses having a merchant processing relationship is a necessary part of the business that produces no social good.  Today I am offering to convert that business necessity into a vehicle that will produce a social benefit.

Please share this email with your network of business owners, nonprofit leaders, and influencers.  Then reach out to Alex Penaloza at apenaloza@panamericanbank.us.  We can serve small businesses throughout the entire United States so geography is not an issue.

I know this was a lengthy email but I wanted to lay it all out in a manner that helps you understand how Pan American Bank is different from other banks.  As the smallest bank in Los Angeles County we are limited in our budget for marketing and outreach.  Yet we continue to receive recognition that is more appropriate for a larger bank.  The reason is that we truly are the real deal.  During the past five years the reputations of banks and bankers have suffered tremendously yet our reputation has flourished.  I am extremely proud of that fact and I hope that when you decide to vote with your dollarsyou vote for Pan American Bank.

Jesse

I hope in the end the community comes together to support not only the bank, but also its creative ways of generating monies for needed scholarships.