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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 which includes a reloadable prepaid card that enables direct deposit, free person-to-person mobile payments and mobile check deposit at $4 per check.
Come January, when companies in Minnesota can officially register as benefit corporations, Sunrise Banks hopes to be one of the first in line. B-Corps are able declare social impact goals along with profit goals and are shielded from shareholder lawsuits charging that social impact has come at the detriment of profit goals. A growing number of states now offer the classification. “What this means from a local standpoint is over 60 percent of our loans are made each year in low and moderate income communities,” Sunrise CEO and CDBA Board of Directors member David Reiling says. Reiling thinks the designation could boost Sunrise Banks' brand -- and profitability.
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 whose ingenuity and dedication have contributed to their companies’ growth and profitability,” according to the announcement by Virginia Business.
Louisville, Kentucky-based Metro Bank has named three new members to its board of directors. The new board members are Marland Cole of Simmons College of Kentucky, Gerald Reynolds of LG&E and KU Energy LLC and John Rippy of Republic Bank & Trust Co. They will be taking positions left vacant by Rick Guillaume, a retired Louisville banker, and Ronald Miller, senior vice president and CFO of Kosair Charities. Pedro Bryant, president and CEO of Metro Bank, said the board of directors expanded by one member, to 10, to prepare for the expected retirement of one of its members next year. Bryant declined to identify the retiring board member.
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 and grow this organization and have more B-Corps in Virginia."
Virginia Business News has named Virginia Community Capital CFO Clyde Cornett among the winners of its CFO Awards. The awards honor chief financial officers whose ingenuity and dedication have contributed their companies’ growth and profitability. The magazine received 48 nominations this year and winners were chosen out of 26 finalists. Cornett’s nomination highlighted Virginia Community Capital's $250,000 increase in revenue for 2013 and a 356 percent growth in assets since 2008. In that time, 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 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 year. But in her session yesterday, she emphasized that the central bank is not locked into a date.
After the massive Target data breach, issuers are bracing for the next hacking crisis -- and the headache of swiftly replacing most of their cards. Belzoni, Mississippi-based BankPlus has adopted instant issuance software called Foxtrot to handle customer and account data conversion. The software automates data entry that otherwise would be manually performed by employees and can issue cards in a fifth of the time. "[I]f we had to replace our cards, we'd be able to replace them quickly," says Janice Smith, vice president and information security officer for BankPlus.
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 we want to create jobs... the retail aspect is a mission because a lot of employees of our customers don’t have banking relationships, and we want to bring them into the banking system."
Carver Bancorp, Inc., the holding company for Carver Federal Savings Bank, has announced the appointment of Isaac Torres as Vice President, Assistant General Counsel and Corporate Secretary. Mr. Torres previously was Assistant Vice President and Assistant Corporate Secretary of MetLife, Inc. "Isaac is a skilled legal professional who comes to Carver with a strong background in both corporate compliance and the financial services industry," said Carver Chair and CEO Deborah Wright. "His experience at a Fortune-50 financial services corporation, along with his work in public finance and community development, make him a strong addition to our senior management team."