Community Development Banking News
CDFI Banking: Industry, Policy, and Beyond.
Casey Christopher is a "CEO," but not the one you're familiar with. As "chief empowerment officer" at Manhattan-based Quontic Bank, she has a unique role in catalyzing innovation from the bottom up. As a community development financial institution, Quontic also has an express mission of reaching underserved market segments—for example, constructing credit products that work well for gig economy workers and immigrants whose finances may not fit standard underwriting models. This kind of financial empowerment translates into employee empowerment too—it calls on a whole team to feel ownership and empowered to introduce new ideas. That’s where Christopher comes in. Christopher leads empowerment through Quontic Bank’s core values: “say cheese” (smile and be positive); “try it on” (be adaptive and open to new ideas), “know the goal” and “progress, not perfection.”
Prior to the Covid-19 crisis and its disproportionate impact on communities of color, the median white household in America held nearly eight times the wealth of the median Black household in 2019, reports Brookings Institution. While President Biden and his administration have unveiled plans to help close this gap, which has only been exacerbated by the pandemic, many people have also called on corporate America and its leaders to take a stand in speaking out against racial inequality and economic injustice. Kevin Cohee of OneUnited Bank is among those interviewed.
Carver Bancorp, Inc., the holding company for Carver Federal Savings Bank, a certified Minority Depository Institution, and Bank of America Corporation announced today that they have closed a Senior Secured Social Impact Revolving Credit Facility with BlackRock's Alternative Solutions Group. BlackRock Alternative Solutions manages private market portfolios and invests across alternative asset classes, sectors and geographies on behalf of its clients. The transaction represents the first time that Carver has participated in a subscription line facility and is among the first-of-its-kind transactions where an MDI has joined as a co-lender. It is also the first subscription line transaction with an MDI lender for both BlackRock and Bank of America. The facility pairs Carver and Bank of America's lending and advisory capabilities with BlackRock's investment expertise, including in the areas of social impact and sustainable investing.
Columbus, Ohio-based Huntington Bancshares Inc. has committed $40 billion toward a plan designed to improve financial opportunities for clients and communities across its footprint, with a focus on affordable housing, small business loans and increased capital to historically disadvantaged and low- to moderate-income areas. After meeting with 400 community organizations, the bank identified racial and social equity, consumer and home lending, small business and community development lending and investing as key areas of need in its expanded 2021 community plan, according to a news release. The bank said it will also place special emphasis on environmental equity initiatives and will talk with leaders to develop programs addressing environmental health challenges faced by under-resourced communities.
Top regulators and leading Democrats at a June 15 conference emphasized their commitment to increasing financial services access for the underbanked and supporting minority depository institutions, or MDIs. Heads of the Federal Deposit Insurance Corp. and the Office of the Comptroller of the Currency attended the conference hosted by Georgetown Law and the Black Economic Alliance, commemorating Juneteenth. Both leading regulators expressed a desire to stay committed to closing wealth gaps and addressing racial inequity through the banking system. Top Democrats in Congress also spoke at the conference about their own efforts to address inequality, including a renewed call for public banking. On a related note, the FDIC on June 15 approved a final policy statement to help promote minority-owned banks
The Climate Safe Lending Network in partnership with the Finance Innovation Lab are pleased to announce that applications for the Climate Safe Lending Fellowship are now open. The Climate Safe Lending Fellowship is a six-month leadership program for banking professionals who are advancing the climate agenda within their institutions. Right now, banks are faced with the enormous opportunity and urgent challenge of financing a just transition to a net-zero carbon future. This requires leadership from within to transform strategy, operations and culture in service of a climate safe world. The Climate Safe Lending Fellowship provides structured support for climate advocates inside banks to build their knowledge, confidence and skills to lead this transformation. The Fellowship program is for banking professionals committed to embedding climate action at the heart of their institutions - regardless of role, function or seniority - and whether working to accelerate climate action through their day job or side-of-desk. Selected Fellows will journey together in a pre-competitive, collaborative cohort between October 2021 - March 2022. They will leave the program more confident and grounded, and will have gained new insights and practical tools to accelerate organizational transformation. Fellows will also benefit from peer-coaching and tailored support, and will build a trusted network of stakeholders across and beyond banking.
A long-time Jackson resident, Penny Lee has lived in her current home for more than 20 years. But over time, the home where she consistently hosted her family began to need repairs she couldn't afford. The roof leaked, porch rails were broken and there were holes in the walls from years of grandchildren playing within the home. Miss Lee had handymen patch things until a $7,000 Special Needs Assistance Program (SNAP) subsidy from BankPlus and the Federal Home Loan Bank of Dallas (FHLB Dallas) funded more substantial repairs including a new roof, trim, porch railings and repairs to interior walls. “FHLB Dallas offers many programs that help us make a meaningful impact on our neighbors and communities,” said Mark Ouellette, first vice president and director of affordable housing at BankPlus. “The SNAP subsidy enabled Miss Lee to make several needed improvements to her home.”
Someday soon, if not today, you may be able to find a banking platform that's designed specifically for you and those like you. A growing number of banks and fintechs are using digital banking platforms to meet the unique challenges and needs of individual communities. There are banks and fintechs that offer banking platforms for Black Americans, the LGBTQ+ community, disabled Americans, doctors, freelancers—the list goes on. Some of these institutions are newcomers on the scene. Others have been around for decades but are now able to leverage digital technology to help their communities and drive real financial change. “That’s what’s important about digital banking,” says Kevin Cohee, chairman and chief executive officer of OneUnited Bank. “Yes, it offers all of these very important benefits to consumers to make their lives easier and to make them better stewards of their money—it certainly does that—but the big deal is this changing our overall society,” he says.
Sunrise Banks is proud to introduce the NextGen Banker podcast, which will launch its first episode on Monday, June 14. Hosted by Sunrise CEO David Reiling, NextGen Banker focuses on the future of finance in a world that's increasingly tech- and values-driven. Reiling will talk with the changemakers leading the way to a more equitable, environmentally conscious and transparent banking future. The show will be hosted by Provoke FM, which is also home to the Breaking Banks podcast, and will air twice a month. Find NextGen Banker on Spotify, Apple Podcasts and everywhere else you get your podcasts.
Darrin Williams, CEO of Southern Bancorp Inc. in Little Rock, Ark., has been appointed to the board of directors of the Little Rock Branch of the Federal Reserve Bank of St. Louis. Williams will fill the unexpired portion of a three-year term ending Dec. 31, 2023. Members of the St. Louis Fed's board of directors and those of its branch boards in Little Rock, Ark., Louisville, Ky., and Memphis, Tenn., are familiar with the economic and credit conditions of their respective regions. Their observations—along with the economic data and information gathered and analyzed by St. Louis Fed staff—help ensure that conditions of Main Street America are represented in Federal Open Market Committee deliberations in Washington, D.C.