Earlier this month, we held another sold out National Bankers Association Annual Conference in Washington, D.C.! This year's theme, "Equity in Action—Charting a Course for Inclusive Banking," reflected our commitment to fostering collaboration among minority-owned and
-operated banks, policymakers, corporations, and fintech leaders. Together, we aim to build a more inclusive financial ecosystem. The expert insights shared by our speakers and panelists equipped attendees with actionable steps to drive sustainable change. Before we dive into the significant highlights from our discussions, we are excited to announce a new addition to our leadership team.
Board Announcement
Todd McDonald, President of Liberty Bank & Trust Company, has been appointed as our new Chairman of the Board, succeeding Robert E. James II. Todd has served on the NBA board for several years, bringing a wealth of experience and a deep understanding of our mission. We are eager to execute Todd’s priorities of growing the asset size of MDIs through strategic partnerships and investments, increasing corporate and federal government deposits, and focusing on the future of banking through technology, infrastructure, and talent. We extend our heartfelt gratitude to Robert E. James II, President and CEO of Carver Financial Corporation, for his exemplary leadership during his two terms. His unwavering commitment to the NBA has left a lasting impact, and we appreciate his service.
Conference Topics
This year's conference featured discussions on critical topics relevant to financial industry leaders, including DEI Backlash, Potential Impact of the 2024 Elections, State of MDIs Research, and the Climate Justice Bonds Initiative. These are just a few highlights from the rich array of subjects covered. For the complete agenda, click here.
DEI Backlash
As DEI initiatives face increasing societal and political pushback, discussions highlighted the urgent need for advocacy and strategic approaches to sustain progress. The backlash reflects broader debates on equity and fairness, influencing policy decisions and sparking conversations about DEI's role in corporate and public sectors.
Key strategies emerging from these discussions include:
Reinforcing the economic and societal value of inclusive practices.
Building coalitions to support DEI goals.
Framing equitable access to financial services as a fundamental right.
By maintaining a clear focus on the long-term benefits of equity in finance, industry leaders plan to counter negative perceptions and continue expanding opportunities for historically underserved communities. Watch the panel: https://youtu.be/86sxxpvL3zg
Upcoming Elections
With the 2024 elections approaching, the potential impact of economic policies and regulatory priorities on minority banks and the communities they serve is significant. Key areas of concern include regulatory oversight, access to capital, and policies aimed at reducing economic disparities.
Shifts in regulatory priorities could either bolster support for minority banks through expanded lending programs and favorable tax policies or impose additional compliance burdens on smaller institutions.
Engaging in the political landscape is crucial for minority banks and their communities. By participating in policy discussions and supporting aligned candidates, minority banking leaders and community advocates can influence legislative agendas, fostering inclusive economic growth. The outcomes of the elections will shape the regulatory framework affecting equitable financial access, making it essential for minority banks to champion policies that promote fairness and empower underserved communities.
Watch the panel: https://youtu.be/mLsmWw_PYhM
The State of MDIs Report
We unveiled our proprietary research report, The State of MDIs, at the conference, showcasing the vital role of MDIs in closing the racial wealth gap:
Total MDI assets have increased by 90% since 2014, with a 42.8% growth since 2019 (during the pandemic) and a 1.7% increase since 2023. MDI deposits have risen by 46.5% since 2019.
MDIs operate over 1,500 branches across 43 states and territories, up from 32 states last year. More than 58 million people live in zip codes served by MDIs, representing roughly 17% of the U.S. population.
Communities with MDIs exhibit better credit health, as measured by credit scores, total credit availability, and credit utilization rates, compared to similar communities without an MDI.
A lending sample from 14 MDIs reported $1.5 billion in loan originations, with over 60% of loans directed to majority-minority communities, and 54% going to areas with poverty rates exceeding the national average.
Watch the panel: https://youtu.be/J7I070ETeGA
MDI Justice Bonds Initiative
We announced our groundbreaking MDI Justice Bonds. This initiative is an innovative financial instrument designed to fund projects addressing climate change and social inequalities, particularly in underserved and minority communities. These bonds raise capital to support environmental sustainability initiatives, including renewable energy, resilient infrastructure, and pollution reduction, ensuring that benefits reach those disproportionately affected by environmental hazards.
This initiative aligns financial products with social equity, allowing investors to support climate action while addressing the needs of minority communities. By facilitating access to green investments, the MDI Justice Bonds helps bridge the gap for historically marginalized populations. Stay tuned for more information!
Watch the panel: https://youtu.be/_Wsa7VeY7NA
Summary
We are thrilled with the outcomes of this year's conference. The active participation of our attendees, invaluable insights from our speakers, and outstanding support from our sponsors contributed to the event's success!
While the conference has concluded, our mission of putting equity into action continues. We encourage everyone to leverage their insights to bolster support for MDIs in their crucial efforts to reduce the racial wealth gap. Regardless of the election outcomes, MDIs will require our continued support.
To aid this effort, we have curated a comprehensive resource page containing speaker presentations, MDI research, and other helpful documents to empower all stakeholders to put equity into action. We look forward to seeing you at next year’s conference!
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