The National Bankers Association Foundation Shares Research On Digital Opportunities for Mission-Driven Banks
The National Bankers Association Foundation (Foundation), the 501(c)(3) nonprofit arm of the National Bankers Association (NBA), announces the release of its Digitalization Report, Navigating the Digital Frontier in Banking: Challenges and Opportunities for Mission-Driven Financial Institutions authored by Anthony Barr, Research and Impact Director; Nicole Elam, Esq., Executive Director; and Stephanie Thomas, Deputy Executive Director of the National Bankers Association Foundation.
Minority Depository Institutions (MDIs), Community Development Financial Institutions (CDFIs), and other community banks are mission-driven financial institutions that play an outsized role in transforming the lives of underserved households and businesses by providing vital banking products and services. Today, mission-driven banks face increased competition, changing demographics, and accelerated trends in innovation. The increase in fintech companies, the rise in cryptocurrency, and growing trends in embedded finance and data-driven personalization suggest that the future of banking is increasingly digital – and mission-driven banks will need to embrace digitalization to ensure their long-term solvency.
The report outlines opportunities and challenges for MDIs and CDFIs to integrate technology with their mission and relational knowledge to better serve and impact underserved communities. The report also features a case study on how Texas National Bank uses digitalization to help consumers and small business owners’ access credit. Finally, the report includes specific recommendations for regulators, policymakers, and other key stakeholders. Read the full report here.