Program aims to develop organizational capacity at mission-driven banks across country
CLEVELAND, OH, December 17, 2024 /24-7PressRelease/ — The Mission Driven Bank Fund (MDBF) today announced that all seven portfolio banks are actively participating in its technical services program, which provides targeted support to the Fund’s portfolio banks to build organizational capacity. The participation rate is well above the program’s 75% goal.
All MDBF portfolio banks have access to the technical services program upon a capital investment. The program, designed to be collaborative, has two key goals. The first is to promote sustainability by strengthening the bank’s financial performance and building staff capacity. The second is to help banks better serve their communities by deepening or growing their existing clients, expanding service areas, and/or investing in technology to improve the customer experience.
The technical services program includes five main components:
• Introductions or referrals to consulting services
• Access to tools, products, and services to help banks navigate the growing technology landscape
• Webinars and trainings
• Peer-to-peer mentoring
• Financial support to implement the program through a subsidy or complementary service
The technical services program is a key differentiator for MDBF as an investor and a critical tool to help achieve its mission of driving significant growth and financial resiliency in the mission-driven bank sector.
“When the FDIC developed the conceptual framework for the MDBF in 2021, we gathered input from numerous MDI and CDFI banks about needed services the Fund could provide,” said Betty Rudolph, director of the Office of Minority and Community Development Banking at the FDIC. “The response was that capital investment alone wasn’t enough. Banks asked us to include in the blueprint that the fund manager could provide advisory services such as strategic, financial, operations, and technology consulting support to complement the capital investments provided by the fund.”
MDBF portfolio banks receive an annual subsidy to work on a technical services project. The banks use the subsidy to fund various needs, including improved marketing and communications materials, updated technology services, and talent recruitment solutions. The technical services team continuously seeks to improve the program through a formal evaluation process with portfolio companies.
“The early feedback is encouraging. Banks say the planning process for the annual subsidy is ‘extremely easy’ to facilitate, and “they wouldn’t have engaged in their chosen project without the encouragement and support of the MDBF,” said Devin Olmack, who leads the technical services program for the MDBF.
The MDBF seeks to expand its roster of consultants or organizations available to portfolio banks through the technical services program, particularly new technology solutions specific to the mission-driven banking sector. Interested providers should send an email to info@missiondrivenbankfund.org to learn more.
About The Mission Driven Bank Fund
The Mission Driven Bank Fund seeks to foster a stronger and more inclusive banking system by investing capital and providing technical services to CDFIs and MDIs that target African American, Native American, Asian, Hispanic, and Pacific Islander communities. The Fund’s mission is to drive significant growth and financial resiliency in the mission-driven bank sector that translates into demonstrated progress in closing the racial wealth gap. Elizabeth Park Capital Management, a specialist firm investing in U.S. banks, and Calvert Impact, a leading impact investing firm, are members of the Fund’s general partner. Strategic Value Bank Partners is a subadvisor, and Performance Trust is a capital advisor and structuring agent for the Fund. For more information, go to www.missiondrivenbankfund.org.
This press release does not constitute an offering of interests in the Fund, which will be made only to qualified investors pursuant to the Fund’s offering documents. Nothing contained in this press release should be relied upon as a promise or representation as to the future performance of the Fund. No representation or warranty is made as to the accuracy of statements, estimates, targets, and/or projections herein, nor as to the ultimate success of the Fund or the external conditions and circumstances under which the Fund will operate. Prospective investors must not rely upon any matters in this release. The activities undertaken by the Fund may differ from those described above due to unexpected external circumstances or otherwise. Moreover, past performance is not a guarantee of future performance.
Certain statements made in this release are “forward looking statements.” These forward-looking statements are not predictions of future performance, conditions or results, and are inherently uncertain and subject to numerous risks, many of which are outside the Fund’s and its advisors’ control. There is no obligation to update or revise any such forward-looking statements.
Any testimonials included herein are being provided by Fund investors, and any endorsements included herein are being provided by persons other than Fund investors. No compensation was provided for any testimonial or endorsement. There is a conflict of interest in that certain of these testimonials and endorsements are being provided by persons affiliated with the Fund.
The above endorsement (the “Endorsement”) was given by a person other than a current client or investor. It is the Mission Driven Financial Institutions Fund, L.P.’s (“MDBF”) knowledge and belief, no additional compensation is being provided or received in connection with such Endorsement, nor is MDBF aware of any conflicts of interest associated with such Endorsement.
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