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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 entering this market remain committed to transparency and community engagement."
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 56 units of safe, beautiful, and affordable housing for seniors in Moody."
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 government relations.
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?
During the long government shutdown, Southern Bancorp announced that it would provide assistance to affected customers by waiving overdraft fees and providing immediate access to a no fee, no credit check, zero interest loan of up to $1,500. Emergency loans were stated to be payable within six months or upon the resumption of government operations. "Southern Bancorp stands ready to assist our customers in this stressful time," said Darrin Williams, Southern Bancorp CEO.