3 min read April 2023 — In an interview with Invest:, Damon Jenkins, regional market president of First Independence Bank, talked about the importance of providing resources and access to people in underserved communities, specifically in the Minneapolis-St Paul region and across the state. The bank makes it a priority to develop relationships with individuals who lack a banking connection in order to provide them with the tools they need to create generational wealth through homeownership and entrepreneurship.
What have been some key highlights or milestones since opening in Minneapolis?
We have been able to establish a presence in the Twin Cities community and enjoyed the journey of how we got here and how it all came together. We are able to cultivate partnerships, and what I would refer to as a financial ecosystem where banks are working towards a common goal of bringing equity and access to underserved communities as well as supporting a Black-owned bank coming to Minnesota. Five Twin Cities-based banks — Bank of America, Bremer Bank, Huntington Bank, U.S. Bank and Wells Fargo — supported First Independence Bank’s establishment with capital, research, marketing and other services to assure its start-up and long-term success.
The new home office on East Lake Street opened in October 2022 and it’s major as it is very close to where the murder of George Floyd occurred. This area has been filled with social unrest, but First Independence opening here has a significant role in bringing hope back to that part of town – an area where I grew up.
What services are you seeing an increase in demand for and how are you closing equity gaps?
The Twin Cities community is excited for the bank to be here, and they are seeking to be part of this special moment. That has been the most significant aspect and that is what we were hoping for in order to grow the bank. We are focusing on offering the community various resources, tools and programming to position them to start taking advantage of banking services, and building assets and equity.
To address wealth gaps, we are partnering with various nonprofits and hosting first-time homeowner programs that assist individuals on their path to homeownership. We are establishing programming through Operation Hope which is a resource that helps individuals establish or repair their credit. The goal is to cultivate behaviors that lead to sustainability. As individuals move through the program, they are rewarded with seeing an increase in their credit score to at least 700, which is significant for them to achieve their future goals of acquiring loans and mortgages. First Independence Bank has the ability to originate those mortgages.
Additionally, we are offering resources to business partners by hosting quarterly sessions called ‘Business Essentials for Small Business Owners’ to connect them with resources to allow their businesses to grow and scale to be successful.
What are your thoughts on the current economic landscape?
The current economic landscape is forcing consumers to be conscious of how their finances are managed. There are still opportunities for one to increase their income however an important skill to have is budgeting and identifying non-essential purchasing. Due to the demand for human capital, employees have a bit of leverage. Within that is the opportunity to come in and be paid more even in a new career. In regards to inflation and the increase of interest rates, there is nothing that can be done as an everyday consumer, but you have to look at finances, spending behaviors and earning potential to find out what can be controlled. The quickest way to give yourself a promotion is to spend less, and that is one of the levers I am personally looking at in order to absorb if we are going to continue down this road of inflation.
How much are technology and digital banking changing the industry?
Technology has consumed our lives. Within banking, we noticed this about 10 years ago. Technology as a whole is driving consumer behavior. I think there is a balance between providing mobile and digital options and branch locations as the public still wants the opportunity to come in and interact with a person as well as the option to use technology to fulfill their banking needs.
You can also look at the trends in regard to the traffic level where people are still coming in and out of locations. Those have been declining for years regardless of what size bank you are in. As we continue to age, technology will make things more convenient and banks will have to adjust.
Because First Independence is new to the Twin Cities market, we need a physical location, however, as we consider the future, we have to be conscious of how technology is influencing customer habits. As a smaller firm, it is an exciting time because we can reimagine how we can continue to carve out this new story for the bank. With continued expansion, we’ll determine if it makes sense to focus on investing in digital and mobile banking options for our customers, rather than a brick-and-mortar building. Banks are going to have to be agile and be able to pivot due to changes in our customers’ banking behaviors.
What is your outlook for the bank and main priorities going forward?
Our vision is to help more underbanked communities establish a banking relationship. We can immediately give those households the money back because it removes the barriers that fees create when attempting to negotiate their hard-earned money. Financial education and wellness is important. For some, they have experienced trauma while banking, so it’s key to establish trust and prove that banking works and tackle those concerns holistically. Also, homeownership is a priority since it is a direct path to generational wealth. Another priority is helping small business owners scale their businesses to enable hiring and providing opportunities for others. We want to ensure people have the resources to make the necessary changes that are sustainable and that in three to five years, systemic change is made and we don’t have to continue talking about struggling communities. We won’t try to address it alone, but we want to be part of the solution and part of the conversations.
At the end of the day, we are creating a historic story, and I am honored and excited to be part of it. There are a lot of things that we can accomplish in this region with the ecosystems we are part of. Our partnerships with Bank of America, Bremer, Fifth Third, Huntington, Chase, Wells Fargo and US Bank, allow our customers free access to over 55,000 ATMs for withdrawals. I am excited and committed to ensuring the bank is successful and that the community is positively impacted.
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