Ford's FDIC application sheds light on ILC plans

Ford Motor Company said obtaining an industrial loan charter would help it make electric vehicles (EVs) accessible to all Americans.

The automaker said in its application with the Federal Deposit Insurance Corp. that the proposed Ford Credit Bank would offer auto loans for EVs through indirect retail installment and lease contracts originated by auto dealers. The bank would also be able to offer direct financing to consumers. 

The bank, which would be a unit of Ford Motor Credit Co. and be based in Salt Lake City, would initially offer financing for conventional vehicles. Ford Credit Bank would also offer deposit accounts, loans to dealerships and loans to help consumers and businesses finance automotive-related parts and accessories. 

Deposit products would include accounts to support the purchase of EVs and other green initiatives, along with CDs. 

“Our unique Community Reinvestment Act (CRA) value proposition … will allow us to collaborate with nonprofit partners and leverage Ford’s expertise to enable greater impact in historically marginalized communities with limited or no access to affordable or reliable transportation,” the filing said. 

“These solutions … may include, but are not limited to, nonprofit fleet capacity building, fleet electrification, public-private-philanthropic mobility partnerships and mobility service solutions focused on enabling greater community access and social impact,” the filing added. 

Ford said Frank Stepan would serve as the bank’s president and CEO. Stepan previously served as vice chairman of UBS Bank USA and was a senior risk and lending executive at Morgan Stanley Bank. 

The board would include Erica Bovenzi, former deputy general counsel for the FDIC; Lisa Violet, chief auditor of Varo Bank; Claire Tucker, former president and CEO of CapStar Bank; and former Rep. Mia Love.