Recent News
The Omidyar Network, a venture capital fund started by Pierre Omidyar, the founder of eBay, recently spun off the portion of its portfolio devoted to financial-inclusion businesses. This new venture firm, called Flourish, will focus solely on backing fintech entrepreneurs whose innovations are helping people take advantage of economic opportunity and achieve financial health. Tilman Ehrbeck, managing partner of the new venture capital firm, shared the logic behind the spinoff and how he finds fintech startups that have a social mission, yet are also moneymakers. Read the full interview... Read more
Rural America has a robust cultural history that has enriched the nation and its people. However, rural areas are also beset with social and economic challenges. Population migration and persistent poverty are contributing to a widening urban-rural divide in many states. But by utilizing the creative sector, specifically arts and culture, governors have a viable approach for changing the status quo. This new Rural Action Guide shares in depth research, processes, and lessons for just how to lead strategies for success.
Governor Lael Brainard of the Federal Reserve Board recently detailed possible steps forward on reforming the Community Reinvestment Act. These possible provisions include an updated approach to CRA assessment boundaries, revising how banks are tested for community development activities, and tailoring certain CRA requirements based on bank size. The aim is to recognize activities beyond a bank's branch network, the traditional CRA assessment boundary, while still prioritizing activities within that network. "By creating separate assessment areas for retail and community development... Read more
The StoryBank Project is a CDBA initiative to capture success stories of various impactful loans from our member banks through the eyes of their customers. These important stories show how underserved communities benefit directly from mission-based banking and financial services. This month's video highlights M&F Bank in Durham, North Carolina -- the second-oldest minority-owned bank in the United States. Its featured client, UDI Community Development Corporation, is a nonprofit that reinvests in low-wealth communities.
The CDBA office would like to introduce you to the newest member of our team. As CDBA's Membership Director, Anna will lead the development and execution of education and peer networking opportunities for member banks. Anna joins CDBA from Partners for the Common Good, a national CDFI loan fund based in Washington, D.C. With a background in CDFI Fund programs, social impact analysis, and investor relations, Anna is excited to work with CDFI banks to build capacity and continue to serve low- and moderate-income communities. Anna is originally from Flowery Branch, Georgia and holds a... Read more
B Corps are businesses that have been certified by the nonprofit B Lab as being committed to the ideal of using "business as a force for good." As community development banks already have that ideal built into their foundations, these banks make a great fit for the B Corp movement. "It's in our DNA to serve our community, particularly low- and moderate-income communities," says City First Bank CEO Brian Argrett. "Our approach to being a community bank was already fully aligned with what B Lab was doing." CDBA's Spring Bank and Sunrise Banks... Read more
Today, the U.S. House of Representatives Subcommittee on Financial Services and General Government conducted a hearing on the impact of Community Development Financial Institutions. The video of the entire hearing is now available for online viewing and review.
Bob Jones, President and CEO of United Bank and Chairman of CDBA's Board of Directors, testified before the Subcommittee on the value of CDFI-certified banks and the community impact and effectiveness of... Read more
When trying to create new, innovative digital customer experiences, many banks struggle to pinpoint where customers are most dissatisfied. To help banks better identify these pain points, European firms such as Glassbox and ContentSquare step in to help. These companies offer high-end tools such as session replay, digital experience analytics, customer engagement tracking, and audit trailing to help banks see where customers are and are not engaged. In the simplest terms, the software allows banks to see what clicked with consumers and what did not.
City First Bank is pleased to announce several new board and executive team appointments, including The Honorable Marie C. Johns, Ms. Shannon Herbert, Mr. Tom Nida, and more. "The last several years have seen robust growth at City First Bank. Adding this level of leadership to our already very talented team allows us to better serve our clients and community," says City First Bank President and CEO Brian E. Argrett. "Our talented leadership team members help us to equitably advance our communities. We are delighted to have them on board."
Southern Bancorp has announced its opposition to a proposed rule change by the Consumer Financial Protection Bureau. Some consumer advocates say the change would water down the rules that prevent payday loan operators and other predatory lenders from pushing high-interest loans on unwitting borrowers. "As a CDFI, Southern Bancorp focuses our efforts in [the] rural, low-income communities in which we see the devastating effects of predatory loans," said Southern Bancorp CEO Darrin Williams. "We support the original rule and encourage the CFPB to reconsider rescinding it so... Read more
Many cite regional inequality as the cause of many problems facing the United States. However, the problem may more accurately stem from inequality within, not between, each region. According to new findings pulling from Census data and extensive research, regional inequality contributes very little to total inequality. In other words, the differences between people within a city like Los Angeles are a lot sharper than the differences between residents of California and residents of Mississippi.
Opportunity Zones offer an attractive investment incentive for low-income communities, with the intent being that these investments will have a positive social impact. However, the law does not require a means of measuring the impact. To meet this need, the U.S. Impact Investing Alliance has developed a framework for ensuring positive results. "Opportunity Zones represent a once-in-a-generation opportunity to spur private investment into America's distressed communities," said Fran Seegull, executive director of the U.S. Impact Investing Alliance. "However...it is important that those... Read more
Earlier this month, UB Community Development, a partner of United Bank, provided Capital Magnet Funds to the Community Action Partnership of North Alabama (CAPNA) and The Bennett Group to be used for the construction of The Village, a 56-unit, affordable multi-family project. "Rising construction costs and falling equity prices were going to leave us with a significant gap in funding," said Dave Truitt, director of real estate at CAPNA. "Due to UBCD and United Bank providing the Capital Magnet funds for our project, we were able to close our gap in financing and...provide... Read more
In celebration of this year's Black History Month, OneUnited Bank, the largest Black owned bank in the United States, recently launched its Royalty Campaign by introducing its new King Visa Debit Card. "We agree with James Baldwin," states Teri Williams, President & COO. "Our crown has already been bought and paid for. All we have to do is wear it." The bank acknowledges respected public figures such as Aretha Franklin, Dr. Martin Luther King, and Lebron James as inspirations behind the card.
This month, representatives from BankPlus joined the Federal Home Loan Bank of Dallas and local dignitaries to award over $40,000 in Partnership Grant Program (PGP) funds to three local nonprofits. "BankPlus takes pride in its commitment to the community, and contributing to different groups and causes," said Mark Ouellette, first vice president and director of affordable housing at BankPlus. "What better way to do this than to exercise our partnership with FHLB Dallas to make positive impacts to the lives of many."
As CDBA grows, we would like to extend a warm welcome to Cassandra Brzezinski, our new Public Policy Director. Cassandra comes to CDBA after working as a Legislative Aide for the Office of Senator Joe Donnelly, where she handled banking, tax, trade, and labor issues. In May of 2018, she completed her Master's in Economics from the University of Maryland. Prior to that, she spent five years in the banking industry, in commercial treasury management sales, and in mortgage operations. Cassandra, alongside Hayley Roth, will work with CDBA member banks on advocacy and... Read more
This week's CDBA Storybank video highlights Pan American Bank & Trust in Chicago, Illinois. Its featured client, Evans Electric, is an electrical contractor specializing in providing high-tech, quality solutions to its commercial, industrial, and residential client base throughout the city. "This has been a dream realized for me," says Evans Electric co-owner Mike Evans.
As technology changes many aspects of our lives completely, many are also making strides in introducing groundbreaking innovations in the financial sector. These new developments include "regulatory sandboxes" allowing firms to test innovative products with regulators, new "regtech" advancements promising to simplify regulatory procedure and reporting, changes in the cryptocurrency space to bolster their legitimacy and bring them into the regulatory fold, as well as the entrance of big tech companies such as Amazon into the finance space.
The current worry around artificial intelligence technology is that it will allow banks to replace employees, leading to massive job loss. However, Accenture's Paula O'Reilly argues that this mindset is incorrect. Studies show that investment in AI will come with an average of 14% job growth. So AI will not replace, but augment much needed human workers. O'Reilly notes how technology can fundamentally change how banks work and benefit employees by automating more rote tasks so they can focus on more personally fulfilling and challenging ones.
During the most recent government shutdown, many banks felt cornered into playing defense. While the banks are not at fault for the government closure, Americans are certainly relying on them to help them get through it. And at a time when faith in the banking system is low among Americans, this is a difficult challenge to come out on top of. To be sure many banks have taken effective action to help their customers, but will it be enough to reverse the negative stigma?