Recent News
You may have heard that Amazon has been in talks with JPMorgan Chase about the possibility of an Amazon-branded checking account. No doubt, Amazon is looking to streamline their customer relationship with a built-in payment system, so customers won't have to leave the site or slow down to enter payment details. And Amazon can add one more industry to its already massive reach.
Tucked into the 2017 law intended to cut Americans' taxes was a program aimed at helping communities struggling with high unemployment and run-down housing. Known as "opportunity zones", supporters on both sides of the aisle say they are creating jobs and making a difference in places that might otherwise be left behind. Critics say residents in those communities actually may be harmed because wealthy investors getting tax breaks could enjoy more of a benefit than local residents. However, both supporters and critics agree that more information is needed on the actual impact of... Read more
A Q&A with Steven Schnall, the CEO of Quontic. Quontic is a community development financial institution that specializes in residential mortgages and has its main branch in the Astoria section of New York; it has branches in three other cities, too. Schnall's vision for the bank is ambitious but clear: Move its corporate office to a higher-profile location in Manhattan — and make it a digital bank.
The Telluride Foundation is excited to announce the launch of the Telluride Regional Loan Fund, a $2 million operating working capital loan fund designed to support rural business startup, growth and job creation and retention in southwest Colorado. The Loan Fund is a partnership with ZOMALAB and First Southwest Community Fund. The Telluride Loan Fund is a working capital fund designed to help companies with their day-to-day expenses. The purpose of the fund is to help uniquely rural and un-bankable businesses bridge the capital gap until they can become commercially bankable.... Read more
Bay Bank is now certified as a Community Development Financial Institution (CDFI). The U.S. Department of the Treasury's Community Development Financial Institutions Fund (CDFI Fund) follows a comprehensive process to certify financing entities. This prestigious designation confirms that Bay Bank is a mission driven bank that promotes community development and its primary target market is underserved communities including Native Americans and small businesses.
In Itta Benna, MS, banks have disappeared completely. The recent designation of Itta Benna as a banking desert follows a nationwide trend of bank branch closures. 3800 branches have shuttered since 2017, overwhelmingly in nonwhite areas.
Longtime Augusta banker Philip R. Wahl has been named president of Aiken-based Security Federal Bank, replacing Richard T. Harmon, who is retiring effective Aug. 1. Wahl, who is currently the bank’s Augusta market president, will remain based in Augusta and will report to Security Federal CEO J. Chris Verenes. Wahl joined Security Federal in 2017 after 31 years working in various capacities with local and national banks in the Augusta market. Wahl said he believes the appointment is a sign of the bank’s growing interest in the Augusta side of the metro area market.
Federal Deposit Insurance Chairman Jelena McWilliams is nearly halfway through a 50-state listening tour. As a result of meetings with local bankers, state supervisors, and consumer groups, Chariman McWilliams has directed staff to increase efforts to decrease regulations, promote community development banking, preserve MDIs, modernize the CRA, and encourage banks to serve low- and moderate-income househoulds.
When they have a complaint about a negligent or belligerent landlord, many New Yorkers have begun sidestepping their landlords for the bankers that finance the buildings. Many banks have given loans to landlords explicitly designed to activate loopholes that remove units from rent-regulated status. Now residents, led by attorneys and advocates at local non-profits, are convincing banks to make their lending practices more fair and transparent.
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. Our latest video highlights Carver State Bank in Savannah, Georgia. The story follows two of the bank's lending projects: Renee's Kids World, a daycare center offering wraparound care to children of working parents, and the Old Savannah City Mission, a nonprofit shelter for homeless and formerly... Read more
Bob Klamp, CEO of GN Bank, has been elected to serve on the Office of the Comptroller of the Currency's (OCC) Minority Depository Institutions Advisory Committee (MDIAC). The committee provides an invaluable perspective on the business environment affecting minority depository institutions, their customers, and the communities they serve. The committee also provides advice regarding the condition of minority depository institutions, potential regulatory changes or steps that may promote their health and viability. The committee includes officers and directors of minority... Read more
Community banks tend to have an aversion to hiring professionals from outside the banking industry, executive recruiters say. The reluctance is understandable, as numerous banking regulations require personnel who understand policies, procedures, risk assessments and vendor management. Furthermore, hiring IT veterans uncommitted to the banking industry can get expensive, as doing so will have employers competing with higher-paying offers from other tech employers. However, if small banks wish to stay competitive, particularly when it comes to their technology, these are issues that will... Read more
The Mississippi Delta faces a myriad of financial struggles that will need innovative solutions to resolve. Southern Bancorp is one of the forces doing important work to meet that need. When Bubba O'Keefe, the official tourism director of the small town of Clarksdale, wanted to acquire a local theater, Southern Bancorp stepped in to finance it. And then when the theater's roof fell through and required servicing, Southern's CEO Darren Williams stood by O'Keefe's side. With ventures like this, the financing of a new local hotel, and financial literacy classes, Southern... Read more
Houston-based Fig Loans is now the first FinTech company to receive both B Corporation and Community Development Financial Institution (CDFI) certifications. Fig uses predictive analytics to offer credit building alternatives to predatory loans. Fig's mission is to give working class Americans a second chance at building credit. And with both CDFI and B Corp awards under its belt, Fig has met two of the highest standards for social performance, transparency and accountability. "The definition of a CDFI aligns word for word with the founding vision for Fig," says Co-Founder Jeff Zhou. "We... Read more
For 45 years, the African American congregation of First Union Baptist Church has worshipped and served together in a historic building on Grand Concourse in the Bronx. However, over the last ten years the church has faced significant financial troubles. Now, Spring Bank is proud to facilitate a redesign of the location, including 45 new units of affordable housing and new retail space to help the church continue its legacy. "This was not a cookie-cutter loan request," says Akbar Rizvi, the bank's Chief Lending Officer. "But at Spring Bank we pride ourselves on making hard... Read more
The Native American Financial Officers Association (NAFOA) has awarded Red Lake the 2019 Small Deal of the Year Award for establishing a grocery store and retail complex in an area that greatly needed one. The new store eliminates a 60-mile round trip for healthy foods and everyday items for the local community. Native American Bank, the lead financing institution for the Red Lake complex, is proud to have played a small part in this success. "Native American Bank was honored to serve as a problem-solver and trusted resource for creative financial solutions," said bank... Read more
Americans seem to be managing their debt well. However, some warning signs, such as an increasing Money Anxiety Index, have appeared in recent months. The Index, developed by Analyticom's Dr. Dan Geller, measures consumer saving and spending habits with the philosophy that consumer behavior may predict economic downturn. And now, the Index appears to be foreseeing another drop. "We are in an economic slowdown," says Geller, who argues banks will need to monitor consumer behavioral trends, like the type of accounts customers use and the spending choices they make, in order to stay afloat.... Read more
JPMorgan Chase is partnering with The Harbor Bank of Maryland as part of The Financial Agent Mentor Protégé program sponsored by the U.S. Department of the Treasury. The mentor program enlists large banks that currently serve as Financial Agents to the Treasury to mentor small, highly capable banks. This program helps prepare the new generation of financial institutions to succeed in responding to the dynamic and diverse challenges that arise when working with the Treasury. "We're excited about the opportunity to help black-owned community banks expand their capabilities... Read more
Banking has radically changed in recent years with technology giving rise to mostly virtual, impersonal interactions. However, community banks, and their characteristic personal touch, are still vitally important to many across the nation. And they should be, because even though they are traditionally smaller banks, they make up a staggering 92 percent of all banks in the nation. So what is it about these institutions that make them so popular? Here, Abrigo's Kylee Wooten seeks to answer that question in five ways.
Fifteen years ago, the Senate passed a resolution recognizing the month of April as a time to "highlight the importance of financial literacy and teach Americans how to establish and maintain healthy financial habits." However, research may now suggest that such programs may not be that impactful. Moreover, for many people the issue is not lack of financial knowledge, but rather the conditions of extreme inequality and income volatility that keep them down. The reality is, people who have money woes tend to already be keenly aware of their problems. For this reason, Jennifer Tescher, CEO... Read more