On February 23, the Minnesota Business Coalition for Racial Equity (MBCRE) launched its $1 million deposit initiative, which is designed to not only encourage its business partners to invest in First Independence Bank—Minnesota’s first Minority Deposit Institution (MDI)—but also to get member companies to encourage their employees to open accounts and make deposits with the bank.
Experts say that supporting MDIs can be important in developing a more equitable and prosperous Minnesota and Black community in the Twin Cities.
“One of the primary ways to grow a bank, to make a bank successful, is for the bank to have deposit relationships,” said First Independence Bank Senior Vice President and Twin Cities Regional Market President Damon Jenkins. “The end result is to get people connected with First Independence.”
“After making my deposit, it reaffirmed to me the importance of Minority Deposit Institutions in our community,” said Tiffani Daniels, managing director for the MBCRE, in a statement announcing the $1 million challenge. “Deposits can make a physical impact on our communities immediately, increasing the lending capacity of the bank. That lending potential can help close the homeownership gap and empower local businesses.”
“We want to be part of the initiative to impact communities of color, in particular Black communities,” Jenkins added. “Because we know we have the most significant disparities when compared to White households. We want to be a place where communities of color can go and cash their check, instead of other places.”
Jenkins acknowledges some of the obstacles facing First Independence. “You have the trust issue that Black communities have, overall,” he admits. “But you have to meet people where they are and establish a relationship and help them identify the resources that are available to them.
“You have to embrace the changes in banking, and technology is changing our lives. It’s not just your traditional bank that’s your competitor, it’s cash apps and Chime that we’re competing with,” he said.
“Beyond that, we’re trying to grow banking relationships, connecting people with products and services,” Jenkins said of the bank’s objectives. “We’re also a financial institution that’s trying to establish a relationship as a connector.”
“If there’s a [MBCRE] company that wants to establish a relationship with the community—whether it’s wealth-building, small businesses, increasing homeownership—this can really have an impact in terms of addressing how communities of color, particularly Black communities, are marginalized. There’s an opportunity for us to connect. Also, we can help companies achieve their equity goals as well.”
Jenkins describes First Independence Bank, a Detroit-based Black bank that opened its first branch in Minneapolis in 2022, as developing an organic relationship with the community. “It’s as simple as establishing a relationship whereby if you open a checking account, you have access to resources that unbanked consumers don’t.”
Asked what the ultimate goal is in generating deposits, Jenkins stated, “Our goal is to reach at least one million in deposits. That’s our score. That’s when we dance in the end zone,” he quipped. “Of course, our aspiration is to outperform that goal. We’re looking to do better, but the target is one million dollars,” he said.
“I’m hopeful that we get people to connect with the bank beyond the deposit. Once they’re connected, they can learn what we’re trying to accomplish and they can help us accomplish it,” he continued.
“We are at a pivotal historical point. There’s significant change occurring in the region, and we have an opportunity to build on the momentum. The bank’s success strengthens the financial wellness of communities, the region, and Minnesota, particularly marginalized, underbanked, or unbanked households and individuals,” said Jenkins.
The MBCRE is encouraging businesses and individuals to get involved in the deposit challenge. Businesses can make deposits at one of the two Twin Cities FIB locations—2217 E. Lake Street and at 3430 University Avenue SE in Minneapolis. Individuals can open personal accounts in-person or online at the bank’s website. All new accounts with a deposit made by June 19 (Juneteenth) at First Independence Bank Twin Cities will count toward this challenge.
“We decided to end the challenge on Juneteenth, because it’s symbolic of our history—not just in Texas, but nationally,” said MBCRE’s Daniels. “The holiday recognizes our emancipation, our freedom. I think the challenge is also about our freedom—our community’s ability to build wealth and our economic and financial freedom.”
For more information about the $1 million deposit challenge, visit MBCRE’s website.
