Independent Banker - May 2020 - 51

want to do it? " Rowland says. " Are you willing to exhibit
the same care for online customers who you may never see
in branches that you would to your local community? "
If so, he says, there are plenty of great partners
interested in sharing revenue and opportunities to innovate
by reaching the unbanked and underbanked and delivering
helpful solutions.
While serving customers overlooked by the financial
system is both a smart business move and essential to the
community bank mission, Williams says, no single product
is going to solve the problem. It takes time, education and
an array of services over a customer's lifetime to integrate
them into the system.
Yet the work is worth it. While these customers may not
be profitable today, putting them on a path to financial
health can result in more loans and a stronger community
down the road. " Every community banker I know really
cares deeply about the places they serve and wants those
places to continue to thrive, " Williams says. " We have to
find ways to promote broad-based prosperity. We need
everyone to survive. "
Kelly Pike is a writer in Virginia.
3 ways ICBA supports
financial inclusion
nce again, ICBA has made financial
inclusion a top priority for 2020, says
Michael Emancipator, ICBA's vice
president and regulatory counsel.
From promoting education and technology
that can expand access to financial services
to advocating for a regulatory framework that
reduces barriers to the use and development
of new community bank products and services,
ICBA empowers community banks to serve the
underserved. These efforts include:
1
Highlighting the CDFI Fund. Many community
banks are already serving populations that
would qualify for the community development
financial institutions (CDFI) designation but haven't
applied. ICBA is working with legislators and
regulators to streamline or automate community
bank CDFI applications in low-income areas. The
funds provided could help offset the credit risk of
serving the unbanked and underbanked.
2
Monitoring how regulators respond
to new technology that could aid the
unbanked. Many banks use alternative data to
augment their traditional underwriting models
using data like a consumer's cash flow, utility
and rent payment history, and even educational
history. ICBA is tracking developments in this
area, such as the federal banking agencies' recent
interagency statement on alternative data, which
recognizes the potential to improve the speed and
accuracy of credit decisions and help evaluate
the creditworthiness of consumers with limited
credit histories.
3
Connecting community banks with
technology stakeholders. The ICBA
ThinkTECH Accelerator, powered by The Venture
Center in Little Rock, Ark., has supported fintechs
geared toward financial health and savings, such as
Wallit in Westbrook, Maine.
independentbanker.org Q 51
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