Big banks including Citigroup, Suntrust and Bank of America are trying to learn from Amazon's use of predictive analytics to target customers more accurately. Like Amazon, banks collect vast amounts of information about their clients' spending and savings. That kind of information could be used to anticipate whether a customer needs a credit card, car loan or mortgage. This individualized approach runs counter to the traditional big bank model that relies on a high volume of transactions rather than marketing tailored to individual customers. Predictive analytic services could be more akin... Read more

A survey of checking account holders by Pew Charitable Trusts has found widespread confusion and dissatisfaction about financial institution's overdraft policies. Current regulations require financial institutions to obtain affirmative consent (an “opt in”) from consumers before enrolling them in an overdraft penalty plan that makes automatic short-term advances to cover transactions. The survey, however, found that more than half of respondents who had incurred overdraft penalties did not believe they had opted in to the plan. The penalties fell disproportionately on younger, lower-income... Read more

City First Bank of D.C. has released their 2013 annual report, marking a year of growth that featured a record $66 million in new loans and the completion of four New Markets Tax Credit projects that deployed $61 million in reinvestment. Among the borrowers City First has helped is Washington Latin Public Charter School. Since 2006, Washington Latin had been giving elementary and high school children top-notch educations -- but operated out of three rented sites. Thanks to financing from City First Bank and assistance from the New Markets Tax Credit Program, Washington... Read more

The Senate Appropriations Subcommittee on Financial Services and General Government has approved its fiscal year 2015 appropriations bill. The bill would set aside $230 million for the CDFI Fund, a substantial increase from the President’s proposed funding level of $224.9 million and in-line with the House Financial Service Subcommittee’s proposed funding level. Also included was a $1 billion authorization for the CDFI Bond Program and $18 million for the Bank Enterprise Award Program. The two... Read more

Prepaid mobile phone carrier Boost Mobile is trying to enter the prepaid card market. Boost executives say the prepaid phone stores will have a unique appeal to unbanked customers. Shops that sell prepaid mobile phones often are in close proximity to check cashers and money-transfer stores. The shops tend to have employees who can speak their customers' language and understand their needs. Boost's basic financial product includes international money transfers, bill pay and the ability to add minutes to the customer's mobile phone plan. Customers can upgrade to a more extensive product... Read more

Clyde Cornett, CPA, was honored at the 2014 Virginia Business CFO  awards banquet on Thursday, June 19. Cornett, who has been with VCC since 2008 as its CFO, is this year’s award recipient in the Small Nonprofit Category.

Cornett’s nomination highlighted a $250,000 increase in revenue for 2013 and noted that VCC’s assets have grown 356 percent since 2008.  In addition, VCC has financed over 4,600 units of affordable housing, created or saved over 1,950 Virginia jobs and financed 6 community health care centers. 

“The awards honor chief financial officers... Read more

Virginia Community Capital held a mixer for local B-Corporations in Richmond, Virginia earlier this month. The gathering of socially-conscious businesses was held to mark crossing the threshold of 1,000 B Corps across 34 countries. "Everything we do has a social impact," said Virginia Community Capital President and CEO and CDBA Chair Jane Henderson. "All the companies here tonight, we could potentially help them grow and be successful and give back more to their communities. We've got capital to lend, we believe in what they're doing, and we're really here to promote them... Read more

The Federal Reserve downgraded its outlook for the U.S. economy this year but forged ahead with the phaseout of its signature stimulus program. The nation’s central bank lowered its forecast for growth this year to between 2.1 percent and 2.3 percent, down from its previous prediction of nearly 3 percent. Officials reiterated that they would likely keep interest rates at zero for a "considerable time" after they wrap up their bond purchases later this year. Yellen previously characterized the language as meaning about six months, putting the first rate hike roughly in the middle of next... Read more

In an interview with Bloomberg Brief, Urban Partnership Bank CEO William Farrow lays out his vision for the bank's future and discusses regulation of community banks: "For community banks, there is a higher cost of tracking and achieving compliance and keeping up with the rules. The last time I looked, the bank had over 70 visits [from regulators since August 2010]... When we assumed the ShoreBank footprint, I started to focus on creating small branches, with the maximum being about 1,500 square feet... We are trying to change to more of a commercial bank structure because... Read more