Sunrise Banks of Minneapolis-St. Paul is exploring new ways of providing credit and financial services to the unbanked and underbanked through technology, says CEO David Reiling. The bank now offers microloans offered through employers as an employee benefit. The program is backed by software that quickly accepts an application for a microloan and provides an immediate decision, depositing funds in an employee’s bank account the next day or making them available on a prepaid card. “If you are really going to be in this business, you need to leverage technology in order to... Read more

The CDFI Fund and Opportunity Finance Network will be hosting a training workshop July 30-31 at Kaiser Town Hall in Portland, Oregon as part of its Financing Community Health Centers Capacity Building Initiative series. The workshops help CDFIs develop the skills to finance and provide services to community health centers in medically underserved communities. CDFIs without community health center lending experience that have relevant community facilities or real estate activities, or CDFIs with existing CHC lending programs looking to expand, are encouraged to participate. The deadline for... Read more

According to a new survey of 100 bank executives, U.S. banks are increasingly setting their sights on underbanked customers. About 23% of bankers said underbanked customers present the greatest growth opportunity for their bank, up from 12% a year ago. Banks are interested in those customers because they spend more money on fees for cashing checks or ATMs than other customer segments. The survey also found that despite the growth of mobile banking, roughly 41% of bankers polled intend to increase the number of physical branch locations over the next 12 to 19 months, which could broaden... Read more

The White House Rural Council has announced the creation of a new fund through which private entities can invest in rural infrastructure projects across the country. Target investments will include hospitals, schools, sewage systems, energy projects, broadband expansion, food systems and other rural infrastructure. CoBank, a national cooperative bank serving rural America and a member of the Farm Credit System, is the fund's anchor investor with an initial commitment of $10 billion. Capitol Peak Asset Management will manage the fund and work to recruit more investors. The U.S. Department... Read more

A group of West Coast banks have banded together to save community development bank Pan American Bank in Los Angeles (not to be confused with Illinois-based CDBA member Pan American Bank). Pan American was facing a potential failure after the collapse of a capital raise in May. The $41 million-asset bank has now been recapitalized after raising $6.3 million from 16 banks. None of the banks will hold more than a 4.9% stake in Pan American, and the Hispanic-focused bank is expected to maintain its MDI status. Pan American also named Robb Evans as interim chairman and chief executive, filling... Read more

An FDIC report profiling Minority Depository Institutions and CDFI banks highlights the small size of the two sectors and their high degree of overlap. MDI and CDFI banks account for a small amount of the broader banking industry. As of year-end 2013, 174 insured institutions, 2.6 percent of all banks, were MDIs. The number of insured institutions certified as CDFIs totals 78, or 1.1 percent of all insured institutions. Of the 78 CDFI banks, 41 were also MDIs. Most MDIs and CDFI banks are community banks -- 88 percent of MDIs and 97 percent of FDIC-insured CDFIs. 

One PacificCoast Bank has rebranded, changing its name to Beneficial State Bank. The new title reflects the bank's commitment to "beneficial banking," which they define as environmentally-friendly banking that supports the local economy. The bank's new acorn logo both symbolizes the growth potential of beneficial banking and evokes the bank's hometown, Oakland, Calif. "Beneficial State Bank offers our customers a new kind of bank and the tools they need to build something beautiful. Beneficial Banking was made to serve those who are creating a better world... Read more

Auto loans to subprime borrowers have risen more than 130 percent in the past five years, driven by the same dynamics at work in subprime mortgages during the financial crisis. High rates and steady profits on the loans are attracting investors including some of the nation’s biggest banks and private equity firms. They are then bundled into complex bonds and sold as securities by banks. The loans are typically at least twice the size of the value of the used cars purchased and can come with interest rates above 23 percent. Many of the loans include battered vehicles with mechanical defects... Read more

Southern Bancorp has announced that Helena, Arkansas-based boutique Bella is runner-up in their Helena Start-Up Challenge business plan competition. The Helena Start-Up Challenge awards entrepreneurs seed capital to turn their business concepts into start-ups. “Bella was started out of a desire to provide area women with stylish, appealing and affordable clothing," said Jordan Yancey, Bella co-owner. "We also wanted to give back to the Delta community, and starting a business downtown that fills the retail clothing gap is one of the best ways we could think of to do that... Read more