Credit card processing, account invoices, adjustments, fees, accounts payable.

To ensure a successful and trustworthy business plan, the Los Angeles Public Bank will need to focus on the complex tasks involved in running a bank. This will include providing basic services such as checking, credit card processing, and liquidity services for the city treasury. The bank will work closely with city departments and agencies to seamlessly integrate their accounts payable, receivable, merchant accounts, checking, wire, ACH, and payroll services, and will assist the Office of Finance in the collection and reporting of taxes.

As it begins to manage deposits, the bank can start making loans and purchasing interest-bearing assets. Its loan portfolio and investment decisions will be guided by its founding principles and the direction of its Board of Governors and may include infrastructure loans to the city, small business loans in partnership with community banks, and special loans for priority city initiatives such as affordable housing and clean energy upgrades.

Initially, the bank may function as a “banker’s bank,” providing liquidity and security for community banks seeking a strong local partner to compete with large multinational financial institutions. It could also offer clearing services and interbank liquidity. As it establishes itself as a reliable and profitable institution, the public bank could expand its offerings by partnering with community banks to provide extra security and lower the cost of banking for everyone.