2021 CSBS Community Bank Case Study Competition Journal

THIRD PLACE: Southeastern Louisiana University The protests have helped to increase the bank’s deposits by as much as 33% in just eight months. Liberty will capitalize on the partnerships and deposits that have been fueled by the BLM movement.

In Summer 2020, the Advancing Black Pathways Summer Apprenticeship program allowed 75 college students to partner with Liberty executives to identify areas of growth and expansion (“Liberty Bank Receives”).

Howard Cloy explained that Liberty’s mission of serving disadvantaged and underserved African-American communities attracts support from large corporations and government entities. In addition, Liberty’s success as the largest minority black-owned bank also makes them a leader of the #BankBlack movement where Liberty is seen as an opportunity for majorities to support the economic growth of African-Americans (Cloy). Cloy explained that many of the recent protests due to social injustice have not only increased the bank’s focus on their own mission but has also attracted many other financial institutions to join in the fight. Since many banks, even the largest, do not usually have operations in urban core areas, they found a unique way to help minorities. For instance, JPMorgan Chase developed a relationship with Liberty under the U.S. Treasury’s Bank Mentor Protégé Program (“Liberty Bank Receives”). In Summer 2020, the Advancing Black Pathways Summer Apprenticeship program allowed 75 college students to partner with Liberty executives to identify areas of growth and expansion (“Liberty Bank Receives”). JPMorgan provides Liberty with access to their Asset Management’s money market funds through a new Empower share class allowing institutional investors to invest in MDIs and CDFIs (“Liberty

Bank Receives”). They also committed to donate 12.5% of revenue for management of Empower share class assets to organizations like Liberty that support community development (“Liberty Bank Receives”). The return to these large conglomerates is not just a “feel-good” moment, but it is mutually beneficial. The equity investments in Liberty credit toward the investor’s Community Reinvestment Act (CRA) performance. Recently, JPMorgan Chase invested $10 million in Liberty through a non-voting equity stake (“Liberty Bank Receives”). CEO, Alden J. McDonald Jr., said this increase in capital will go towards stronger efforts to support small business, expanding lending for mortgages, and helping to “refinance predatory lending products.”. Similar investments have been made by all the largest banks.

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