Indiana's first minority depository institution opens in Indy
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Generations Community Bank CEO Al London speaks at the podium while flanked by the staff of the historic startup. Photo: Justin L. Mack/Axios
Indiana's first Minority Depository Institution has opened in Indianapolis, aiming to expand access to banking in underserved communities.
Why it matters: The mission-driven Generations Community Bank aims to reduce financial inequality by giving underbanked Hoosiers a safe place to manage their money.
Driving the news: Generations Community Bank is Indiana's first startup bank since 2008 and the state's first Minority Depository Institution, per an American Bankers Association analysis of Small Business Administration data.
- Evansville-based Old National provided the bank's primary source of initial funding, but Generations operates as a separate for-profit institution rather than an Old National subsidiary.
How it works: MDIs are federally insured financial institutions with majority minority ownership or leadership that primarily serve minority communities.
- According to Generations CEO Al London, of the thousands of financial institutions in the nation, about 150 carry the MDI designation.
- As an MDI, Generations will gain access to specialized federal funding sources, training and technical services.
- The bank is located within the Indy Health District, a five-neighborhood jurisdiction where access to capital has long been a barrier to economic mobility for residents of color.
What they're saying: London, a 30-year banking veteran who left a senior vice president post at Old National to lead the startup, fought back emotion during Thursday's ceremony as he reflected on the two-year sprint to opening day.
- In addition to the 7,500-square-foot space at 2102 N. Illinois St., the bank will soon operate a 1,200-square-foot space inside the Baxter YMCA at 7900 Shelby St.
- Branches will focus on providing financial tools, education and stability for residents, with home ownership, credit management and entrepreneurship among the key challenges they want to tackle.
- "Typically, when you open a new bank branch, you're lucky to get 50 people to show up," London said to a crowd of more than 400. "So thank you to Indy for showing up to support."
Yes, but: Bob Jones, former Old National chairman and CEO now serving as Generations' first board chair, knows that the bank has to make good on its promises to serve a community that has been let down in the past.
- "Trust is not something you talk about. Trust is something that you earn," he said. "It's up to us to make sure we've done that. So please … hold us accountable for that."