New Indy bank on a mission to make a difference
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Al London (left) and Rafael Sanchez discuss the pending launch of Generations Community Bank. Photo: Justin L. Mack/Axios
Generations Community Bank is on track to become the state's first startup bank since 2008, and Indiana's first-ever Minority Depository Institution (MDI), early next year.
Why it matters: At the heart of the effort is a desire to address financial inequality by giving traditionally underserved and disproportionately underbanked Hoosiers of color a safe place to do business.
What they're saying: "We want to address the wealth gap for generations to come … and that's a huge positive for the entire community," said Al London, a senior vice president at Old National Bank who will become Generations' first CEO.
Driving the news: With a launch slated for the first quarter of 2026, Generations will join a list of about 150 institutions nationwide that carry the MDI designation.
- MDIs are federally insured depository institutions that either have at least 51% minority ownership or a board of directors that is at least 51% minority serving a predominantly minority community.
- As an MDI, Generations will gain access to specialized federal funding sources, training and technical services.
- The designation cannot be officially granted until the bank opens.
Zoom in: Evansville-based Old National provided the bank's primary source of initial funding, but Generations will operate as a separate for-profit institution and not an Old National subsidiary.
- It will run branches at a 7,500-square-foot space at 2102 N. Illinois St., and a 1,200-square-foot space inside the Baxter YMCA at 7900 Shelby St.
Yes, but: Generations will not be a bank that only serves people of color.
- "This is not a DEI play. It's an economic play. This is about economic mobility," said Sanchez, who is also Old National's chief impact officer and Indianapolis market president.
- "We're going to serve all Hoosiers of all backgrounds and all colors," he said. "There are many people who feel they've been left behind, and the service model applies to everyone equally."
How it works: Generations branches will focus on providing financial tools, education and stability for residents.
- London said home ownership, credit management and entrepreneurship are among the financial hurdles they want to help Hoosiers clear.
- Working alongside customers to help them understand the banking process while making transparency paramount will set Generations apart, Sanchez added.
- "We're not lowering the bar," he said. "Our job is to help lift them until they can meet the bar."
What we're watching: Generations is still seeking additional investors to join a list of more than 30 before its initial funding round closes on Dec. 15.
- The bank needs $24 million in capital funds to open, and has raised more than $23 million so far.
Go deeper: Where Indianapolis kids have the most — and least — opportunity