Recent News
At the moment the Great Recession hit in 2008, America boasted 215 minority-owned banks. Today, only 146 so-called "minority depository institutions" remain. That decline, a trend that might be termed "The Great Winnowing," began well before the bottom fell out of the nation's housing market, and it reflects, in part, a broader trend toward consolidation within the world of finance. But Washington has also played an egregious role. Recent congressional funding boosts in these institutions are a good start. But to end the vicious cycle, Washington must be much more aggressive given the... Read more
A group of community banks is poised to fulfill a high-tech goal it set last year: to let customers buy and sell bitcoin on mobile banking apps. An estimated 300 banks, some of which unveiled their plans in June, will go live in the first or second quarter with this service with the help of the fintech NYDIG. The banks, the American Bankers Association and the Independent Community Bankers of America have made investments in the company as part of the effort. Several regulatory and security concerns have been worked out in the months since the initial announcement, and partnerships and... Read more
For their fourth annual ranking of top impact companies, Real Leaders recognizes the rise in purpose-driven businesses by expanding their Real Leaders Impact Awards list to our biggest yet with 200 winners! Included are a diverse group of companies from around the world that prove that businesses can thrive and help build a better world. Included among the winners are CDBA members Beneficial State Bank and Sunrise Banks.
US policymakers have been urged by a senior co-op figure to invest more in Community Development Financial Institutions (CDFIs) at a hearing last week. The comments, from John Holdsclaw IV, executive vice president of strategic initiatives at the National Cooperative Bank, were reported in a blog post from co-op sector body NCBA-CLUSA. The hearing was focused on how CDFIs enhance economic opportunities in underserved communities, and looked for ways the federal government can better support their work. The Senate Banking Subcommittee on Transportation, Housing and Community Development... Read more
This week, Wells Fargo joined the list of large banks introducing short-term credit products — and the much smaller OneUnited Bank in Boston unveiled a version of its own, intended as an alternative to payday loans. OneUnited's loan, called CashPlease, is designed to help customers of the $635 million-asset Black-owned bank manage their cash flow without the hurdles and higher costs some other lenders might impose. Instead of conducting credit checks, it looks at applicants' checking-account activity and other aspects of their relationship with the bank. Funds arrive within four hours of... Read more
Do you know what your top 3 community development priorities are for 2022? Or are you overwhelmed with competing priorities and not sure where to start? Register now for this free webinar with CRA expert Linda Ezuka to learn how to create an effective and actionable CRA strategy for your institution. Some of the topics we'll cover include planning considerations given your current CRA exam cycle, aligning CRA initiatives with your bank's core business strategy, developing your CRA strategy and goals, partnering with business units to set performance targets that are mutually beneficial,... Read more
On Tuesday, January 18, 2022 the Community Development Financial Institutions Fund (CDFI Fund) is conducting an informational webinar on its new Title VI Compliance Worksheet. All fiscal year 2022 CDFI Fund award applicants are being asked to complete a Title VI Compliance Worksheet once annually with their applications. Title VI of the Civil Rights Act prohibits discrimination on the grounds of race, color, or national origin in programs or activities receiving federal financial assistance. Award applicants must be compliant with federal civil rights requirements in order to be eligible... Read more
People of color are paying more than twice the amount in banking fees than White Americans, a Bankrate survey found. When asked about fees such as ATM, overdraft and routine service charges, Black adults report shelling out an average of $12 a month for checking accounts at banks or credit unions and Hispanics are paying $14 a month, on average. White checking account holders said they are paying an average $5 per month, according to the survey, which was conducted by YouGov. For minority communities, the disparity in bank fees are indicative of the inequality they have faced for years,... Read more
While the debate over whether the U.S. should create its own central bank digital currency continues, the ultimate conclusion is already clear — like it or not, a U.S. digital dollar is coming. If you're a banker, particularly a community banker, this should scare the hell out of you. Because depending on how the digital dollar is created, it could create serious competition for federally insured deposits, drying up the primary source of funding for banks. So far, bankers have been largely absent from this debate, understandably distracted by the economic turmoil caused by the pandemic and... Read more
A trio of investment funds established to inject capital into minority-owned banks and community development financial institutions share the same ambitious goal: eliminating the nation's racial wealth gap. To date, however, the collective impact of MDI Keeper's Fund, the Black Bank Fund and the Federal Deposit Insurance Corp.'s Mission-Driven Bank Fund has been limited. One big reason is that other sources of capital — namely, large banks and the federal government — are also making investments in minority depository institutions and CDFIs. The recent influx of cash — largely the result... Read more
There's money to be made for banks that offer low-cost deposit accounts to previously unbanked or underbanked households. That's one of the key takeaways from a recent Federal Reserve Bank of St. Louis report that looks at new account openings, debit transactions and online banking activity, associated with Bank On checking accounts. Bank On accounts, offered by dozens of banks, must charge no overdraft fees and no-fee debit cards, among other things, as designated by the nonprofit Cities for Financial Empowerment Fund. Last year, customers at 17 financial institutions opened 2.2 million... Read more
Durango resident Jenni Gross was out of work for more than eight months after the building where she leased space for her business, The Soup Palette, was sold to a new owner, and she was forced to close. Today she operates out of a food truck she was able to purchase through a unique lending partnership between the First Southwest Bank and its sister non-profit. Hundreds of entrepreneurs in Southern Colorado have been able to start or expand their businesses thanks to a unique partnership between the First Southwest Bank and its sister non-profit, the First Southwest Community Fund. During... Read more
Values-based community bank Climate First Bank has partnered with Project Regeneration to develop a one-of-a-kind checking account that will support, promote and create funding for the environmental nonprofit's mission of planetary regeneration. When a client opens a Project Regeneration checking account, a $100 donation will also be made directly to Project Regeneration to assist with the foundation’s sustainable initiatives. In addition to the one-time contribution, monthly earnings garnered from the interest on all balances will be donated to the foundation. The account will also have... Read more
Across the country, community groups are soliciting e-bike companies for help competing for state money in the hopes of getting more people riding. Cities like Portland, Denver, and Buffalo are launching pilot projects that explore ways to subsidize e-bike purchases for low-income families or collect enough bikes together to launch mini-shared micromobility services. But the goal isn't just to get more people on e-bikes; it's also about reducing tailpipe emissions and saving the planet. Through a partnership with Spring Bank and grants from the state government, the Equitable Commute... Read more
A new small-dollar loan for borrowers with limited credit histories has emerged from a partnership between a community development financial institution and a fintech. NAAC Finance, the new digital lending arm of the National Asian American Coalition, developed the product with Asenso Finance, a startup that processes and services loans for financial institutions. The loan has two unusual features: Customers must complete financial literacy training before their loan is approved, and alternative data such as income is used in the underwriting. The relationship between NAAC — a CDFI in Daly... Read more
Giant Food announced on Wednesday that they are investing $50 million to support The Harbor Bank of Maryland, the state's only black-owned and -managed commercial bank. The investment will increase the amount of loans the bank is able to give out. Through this investment, Giant and Harbor Bank aim to help underserved communities by bolstering local businesses, as well as technological and personal advancement.
In October, the Community Development Financial Institutions Fund (CDFI Fund) reported that its Awards Management Information System (AMIS) would be transitioning to an updated user interface. Originally scheduled to occur in mid-December, the conversion to the Salesforce Lightning environment is now scheduled to take place on January 14, 2022. Questions regarding AMIS can be submitted via a Service Request in AMIS, email at amis@cdfi.treas.gov, or phone at (202) 653-0422.
Over the past year, increased funding and enhanced recognition of the role Community Development Financial Institutions (CDFIs) play in facilitating economic recovery, inclusion and opportunity in distressed and underserved communities has generated a dramatic increase in the number of organizations seeking Certification as a Community Development Financial Institution (CDFI). In order to right-size expectations of the time needed to provide a decision, going forward, the CDFI Fund can no longer commit to providing determinations on CDFI Certification Applications and Target Market... Read more
Over the past year, increased funding and enhanced recognition of the role Community Development Financial Institutions (CDFIs) play in facilitating economic recovery, inclusion and opportunity in distressed and underserved communities has generated a dramatic increase in the number of organizations seeking Certification as a Community Development Financial Institution (CDFI). In order to right-size expectations of the time needed to provide a decision, going forward, the CDFI Fund can no longer commit to providing determinations on CDFI Certification Applications and Target Market... Read more
Southern Bancorp Community Partners on Monday announced that it had hired Anthony Young, a former director of capital programs at the nonprofit Epicenter Foundation, as its new president. Young replaces Karama Neal, who earlier this year was appointed to the U.S. Department of Agriculture's Rural Business-Cooperative Service. At the Memphis-based Epicenter, Young connected entrepreneurs to a variety of capital types and helped ensure equitable access to capital across the community, SBCP said in a news release. He previously served as the economic development director at River City Capital... Read more