George Floyd's deadly police encounter started when he used a counterfeit $20 bill to pay for items at a convenience store on May 25, 2020.
For leaders in the financial world, this transaction gone wrong became the catalyst to take an active role against racism and address economic disparities in this region.
Peter Frosch is the CEO of Greater MSP, the region's economic development group. They, along with five major established banks, combined their powers to establish a Black-owned bank and Frosch says they’re just getting started.
Of the over 5,000 banks in the country, only 18 are Black owned. Now operating in its third month, First Independence Bank is focused on serving those underbanked communities.
“The underbanked, in my opinion, would be individuals that may have some type of banking relationship, but they really are not stewards of banking,” says Damon Jenkins, senior vice president at First Independence, who makes it clear the bank is not for Blacks only.
First Independence plans to open a second location in July.
While its existence is monumental and its origin story unique, some worry that such changes are just a moment in time.
Tawanna Black is the CEO of the Center for Economic Inclusion, a nonprofit determined to build a racially inclusive economy.
“It has to be an ongoing commitment,” says Black. “We will not get to an economy that truly works for everyone, a community that demonstrates belonging and inclusiveness, and leads to equity. This takes sustained daily action. That takes people waking up every day and saying, what is it that I can do today?”
The fifth largest bank in the country decided to ask itself that question. And although there have been mistakes, US Bank chief diversity officer Greg Cunningham says transparency has been key in keeping their post-George Floyd promises.
“No organization, no individual, no community is going to get it right 100% of the time. And where you don't get it right or where you fall short of either your expectations or a customer's expectation, we own it,” says Cunningham.
U.S bank pledged $100 million to support minority-owned and Black-led businesses. They surpassed that goal and they did it by $ 7 million.
Financial leaders are optimistic about the economic future of our region. These industry captains say since Floyd's murder, there's still a sense of urgency and closing the racial wealth gap.
“If we think about this as an innovation opportunity, these are the things in some ways we are least proud of,” adds Greater MSP CEO Peter Frosch. “But we can use some of our strengths and some of the traditions that we’re rightfully proud of really to be our greatest assets in this moment.”
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