Chicago has 193 different banks—are you banking with one that uses your money in alignment with your values?
Last month, a group of students, small business owners, community organization leaders, and finance professionals gathered to explore this very question as part of our interactive Chicago Ideas Week lab at the University of Chicago Polsky Center for Entrepreneurship and Innovation.
As covered by Next City, the purpose of the event was for Mighty to share its new beta platform — described by Mighty as being like “Trip Advisor for community-investing banks” — with an audience of lab participants who signed up to make $100,000 of virtual deposits each into banks across the Chicago metro area using the Mighty platform, and to discuss why they made their decisions.
“I put my money in GN Bank, Urban Partnership Bank, and Liberty Bank and Trust because they are each banks with a history of financing black American communities in Chicago,” a lab participant said. Meanwhile, a live poll continuously refreshed at the front of the room, visualizing where lab participants were choosing to make their deposits.
“I put some of my money in a particular bank because I saw that people in the room were putting their money there, and I could on Mighty that the bank is Chicago-focused and puts more of its money in the bank toward community financing than the average bank in Chicago,” a second lab participant said.
“I liked learning about banks that are 100% focused on Chicago,” another lab participant said. “And learning how different people have put together a banking portfolio influenced my thinking, too.”
The lab began with a panel featuring four Chicagoans and the portfolio of banks they used at their organization, or personally. Projected on a large screen behind the panelists were the names of the banks each banked with.
Jeffrey Beckham, Founder of Black Box Creative, spoke from the point of view of a small business owner. Beckham said he used different banks for different reasons: one strictly for transactional purposes, and another for the values-aligned, neighborhood-oriented relationships it offers his business and the other small businesses he works with.
Eliot Abrams, a PhD candidate in economics at the University of Chicago Booth School of Business, spoke about his role while an undergraduate student at the University of Chicago to work with his classmates to prompt the University to place $1 million of university deposits into banks focused on making community investments. (A case study of the student-led campaign was written up by Democracy Collaborative, here (see page 33)). Abrams said that getting the university to agree to making the deposits required just a few short meetings.
Abrams explained that as part of his senior class’ community outreach initiative, he and his fellow students asked the university to move some of its money on deposit in FDIC-insured banks to others that were equally insured but more focused on financing small businesses and housing in neighborhoods around the university. According to Abrams, both students and university officials agreed that making a deposit in a community-investing bank was an easy and low-risk way for the university to make an impact.
Daniel Ramirez-Raftree, a NY-based consultant with Acceleration Group, spoke about his decision to use both a global bank and a Chicago-focused bank.
Ramirez shared that he moved to New York City to advance his career after two years of working with Urban Partnership Bank in Chicago, which he learned about while a student at the University of Chicago. Ramirez-Raftree said that he maintains an online savings account with the Chicago bank to keep a connection to Chicago community.
“While it’s true that I could perhaps make a higher interest rate if I put my money in an online-only bank, I did the math and decided that the small bump in interest isn’t worth my sacrificing my aligning my money with my values,” Ramirez-Raftree said, adding that his interest rate from Urban Partnership Bank is better than that offered by some global banks. “I know community-investing banks make many small loans and this is more costly than only making large loans, so I understand why a community-centric bank may not always offer market leading rates.”
Jabari Porter, Chief Investment Officer with the City of Chicago’s Treasurer’s Office, highlighted the City’s placement of $20 million of deposits with GN Bank as part of the City’s initiative to build a bank portfolio that balances the City’s financial management needs with its commitment to support community investments in neighborhoods across the city. Porter encouraged the audience to engage their local representatives if municipal deposits were something a community was interested in attracting to its locally-focused neighborhood bank(s).
Lab participants began placing their virtual deposits using the Mighty platform at the conclusion of the panel having listened to the experiences of the panelists, and by exploring bank impact data on Mighty and conferring with the ideas of fellow lab attendees.
Here’s a summary of the three ways in which the lab participants chose to place their virtual deposits.
1 - Chicago Lab participants chose to make their deposits with banks that put the majority of their deposits to work in Chicago.
At the start of the event, lab participants learned that among the 193 different banks with a branch or HQ office in the Chicago metro area, just 7% of these banks’ total deposits are at work in Chicago.*
After engaging with the Mighty platform, lab participants made clear that the banks in Chicago that put the majority of their deposits to work in Chicago are of special interest.
In the course of the simulation, lab participants overwhelmingly chose to deposit their virtual cash with Chicago-focused banks putting the majority (if not all) of their deposits to work in Chicago. Specifically, 18 of them.
This resulted in the lab participants’ virtual deposits supporting banks that put 96% of their deposits to work in Chicago, versus the 7% of deposits at work in Chicago according to the status quo Chicago bank industry average.
Where deposits are at work* among all Chicago banks**
Where deposits are at work* among all Chicago banks chosen by lab participants***
2 - Chicago Lab participants deposited their money with 18 different banks, most all of which are focused on financing the real economy, and many which are focused on financing populations where equity historically lacks.
“An immediate benefit of Mighty is seeing that there are many more bank choices in Chicago — and differentiated bank choices — than I had ever realized,” a lab participant said.
Through the course of the simulation, lab participants deposited their virtual cash into 18 different banks.
Of the $3.5 million of total virtual deposits placed:
99% or $3.47 million was deposited with banks focused on financing the real economy, which Mighty also refers to as the neighborhood economy or communities, in the form of community loans and investments.**
61% or $2.14 million was deposited with banks certified for their focus on financing poverty alleviation.**
35% or $1.23 million was deposited with banks certified for financing Black American Equity in communities.**
17% or $595,000 was deposited with banks certified for financing Asian American Equity in communities.**
Types of banks with which lab participants collectively placed $3.5 million of virtual bank deposits
3 - Chicago Lab participants created $1 million of new community investment, mostly in the form of business and housing loans.
Of all of the money in all of the banks with a presence in the Chicago metro area, 50% of the total money in these banks is used to finance the real economy across the US in the form of loans and other community financing for businesses, farms, housing, construction, public works, and consumers.
Using the Mighty platform, lab participants made deposits with a consideration for banks that put a larger share of their total bank money (60%-85%+) into community financing than the bank industry average (50%).
The 18 banks selected by lab participants collectively put 81% of their total assets into community financing.
In result of the simulation, the virtual deposits created a 31% (or $1 million) increase in community financing, mostly in the form of business and housing loans, versus the community financing that would result from the deposits having been made in a network of banks that behave like the Chicago bank industry average status quo.
STATUS QUO VS LAB SIMULATION
Percentage of money in Chicago metro area banks (Status Quo) that is invested into the real economy, or communities, versus the percentage of money in lab participants’ chosen banks (Simulation Cohort) that is invested into the real economy.
The event, of course, was a simulation. But if a group of 35 lab participants controlling a sum of $3.5 million could create $1 million of new community investments through the low-risk, relatively easy yet intentional placement of deposits with Chicago and real economy focused banks, imagine what a larger group of committed organizations and individuals could do for the city.
"The simulation was really eye-opening,” said a small business consultant in attendance at the lab. “I work with a network of small businesses and its powerful to know there is a whole network of banks specialized in financing community investments like loans for small businesses in different neighborhoods with diverse needs. I’ll use Mighty as a resource to better advise my small business clients interested in bank relationships that match their needs and ethos.”
Are you an individual or organization interested in building a bank portfolio that shares your values? Sign up to receive a personal invitation to use Mighty as a resource to do just this.
Are you a bank that would like to learn about how your bank can learn from the insights collected in our lab? And how Mighty can help you communicate your bank’s impact to your stakeholders? Contact us and we’ll be in touch.
“The plight of the unbanked in the US’s poorest regions is a modern-day scandal in the world’s richest nation. Southern Bancorp is one bank seeking to address the problem. The bank has been working with marketing technology firm Mighty, offering data analysis on the impact of the 5,000-plus banks in the US. The aim is to increase awareness about how deposits support community investments and to point consumers to banks that align with their values.”
What do Hollywood, the US congress, business, and banking have in common?
The Dealers of Entertainment, the Architects of National Policy, the Job Creators, and the Money Managers. These industry and culture shaping positions demand diversified, representative control. Except there isn’t.
Right-sizing representation isn’t about deciding how to better slice a pie. It’s the commitment to eliminate blind spots in the decision-making bodies that shape the inclusivity of our culture and our economy for all Americans.
To think about it as slicing pie is a blind spot in of itself.
The Underrepresentation of Women
One of every two people in the US is a woman.
One woman owns a business for every three men who own businesses.
One woman speaks in top Hollywood films for every four men who speak.
One woman holds a seat in Congress for every five males who hold seats.
One woman is CEO of a Fortune 500 company for every 17 men who are Fortune 500 CEOs.
One woman owns a bank for every 372 males who own a bank.
The Underrepresentation of People of Color
Two of every five people in the US are people of color.
Two people of color own a business for every six white people who a own business.
Two people of color speak in top Hollywood films for every six white people who speak.
Two people of color hold seats in Congress for every ten white people who hold seats.
Two people of color own or govern a bank for every 67 white people who own or govern a bank.
Currencies of Power
Those in power can choose to step forward to address historical and systemic patterns of inequities that are neither arbitrary nor benign, but the result of bias within systems.
Meanwhile, those who may not recognize themselves as powerful can -- and must -- step forward and intentionally act to undo learned patterns that unintentionally preserve inequities within systems.
The ability to produce, express oneself creatively, vote, and manage money are instruments of power that every individual wields.
The degree to which one does so is the choice of the individual.
The majority of businesses in the US are small businesses. While business ownership overall -- aka small business systems -- demonstrate more equitable representation of female and minority ownership than those of government or global business, banking systems have the farthest to go in championing equity for women and people of color.
This may mean that by supporting finance organizations that are focused on building up small businesses, there is more likely to be a direct impact on building up a wave of women’s and minorities’ equity stakes across industries, and consequently a wave of diverse and representative leadership stepping onto national and global stages.
From supporting local business.
To writing an Op-Ed or expressing one's values creatively.
To voting in local elections or organizing to get out the vote.
To choosing to do work you believe in, or volunteering for causes you believe in.
To spending your money, investing your money, and banking your money with intention.
It is your choice to wield your instruments of power, intentionally, every day.
Using your power indeliberately may result in your relinquishing your power. And hoping that your relinquished power isn't used to undermine your interests during the time that it takes you to retrieve it.
Population data, 2016: https://www.census.gov/quickfacts/fact/table/US/PST045216
Business ownership data, 2016: https://www.census.gov/quickfacts/fact/table/US/PST045216
Hollywood data, 2015 : https://www.pbs.org/newshour/nation/30000-hollywood-film-characters-heres-many-werent-white
Congressional data, 2018: https://fas.org/sgp/crs/misc/R44762.pdf
Fortune CEOs data, 2017: http://fortune.com/2017/06/07/fortune-women-ceos/
Bank data, 2016: Mighty
Your money isn't sitting in your bank.
Don’t panic. You already know this, but here’s your friendly reminder.
When you deposit your money in your bank, your bank uses your money to fund loans and investments.
So your money in your bank is in motion, put to work in the world to finance the economy.
How much money are we talking about?
The public has a lot of money in banks. $11.27 trillion to be exact, equal to about 60% of US GDP.
The total net worth of Bill Gates, Warren Buffett and the 20 wealthiest investors in the US combined is a fraction of the total money America keeps on deposit in the bank.
This money is community capital. 93% of the American public has some money in a bank account.
Americans put trillions of dollars into bank accounts with limited regard for the trajectory of their funds.
Why? Because money in the bank is not equal to money under the mattress. It doesn't just sit there.
Only 10% of your deposit stays in bank. Up to 90% is lent out in the economy.
This money on deposit in the bank -- in checking accounts, savings accounts, CDs, money market accounts and other deposit accounts -- is making an impact.
We all know the simple idea: you and your community put cash into the bank. The bank lends this money out to community looking for a loan. The bank earns interest on the loan, and gives you a slice of the interest gained while keeping the rest for itself as profit.
All the while, the bank keeps enough money on hand so that you can get your cash out whenever you need it.
The story is a bit more complicated in practice. Banks are focused on financing different markets. But deposits in, loans out is a sufficient framework to think about when discussing one of the core functions of a bank.
Consider Bank A versus Bank B.
Community A puts money into Bank A. Twenty eight percent of the money in Bank A is lent to small business owners in Chicago.
Community B puts money into Bank B. Seven percent of the money in Bank B is lent to businesses across the country.
If you want to your money to go towards growing small business in Chicago, you might consider banking with Bank A.
If you're building a small business in Chicago, you might consider banking with Bank A.
America puts 40% of all of its bank money into 0.1% of its banks. The other 99.9% of banks may be of interest to you. You have more bank choices than you may realize.
Chances are, you've never heard of 99.9% of the banks in the country.
America has nearly 6,000 banks. If you include the nation’s credit unions, this is around 12,000 banking choices. You have choices in banks than you may have never considered.
Your bank invests your money according to your bank's values. Find banks that share yours.
Larry Fink is the CEO of BlackRock, the largest asset management firm in the world with over $5 trillion under its control.
In his letter, he stated that for companies to prosper over time, they must “not only deliver financial performance, but also show how it makes a positive contribution to society.”
You don’t have to be in charge of trillions of dollars to consider what this can mean for you.
Here are two ideas you can take from Fink's playbook:
Play #1: Leverage the fact that you have choices in how and where you bank your money.
Just like Larry Fink is demanding social accountability and transparency from the companies BlackRock invests in, the American public can demand social accountability and transparency from the businesses they give their money to.
Fink wrote that “society increasingly is turning to the private sector and asking that companies respond to broader societal challenges.”
Individuals and organizations can take a lead in financing a sustainable future that’s good for themselves while being good for the ecosystems within which they seek to thrive by making intentional decisions about how they spend, invest and bank their money.
Play #2: Ask tough questions.
Setting ideals about business delivering financial and social performance may sound abstract. The next step is getting specific about issues impacting communities and using data to advance your understanding about these issues. Fink posed several question for companies that you can also ask of yourself:
What role do I play in the community?
How is my money supporting or undermining my role in the community?
Am I information-driven in how I bank my money, or am I putting off getting informed because I don’t know how to take action?
You can choose to take the initiative to investigate the impact of how your money is serving or undermining your role in your community.
The growing conversation about businesses delivering financial and social value need not be dominated by billionaire CEOs.
Unless you choose to continue to sit on the sidelines while your money is in play.
Earlier this month, the University of Chicago’s Richard Thaler received the Nobel Prize in Economics. He’s famous for his contributions to behavioral economics and his insights into decision making.
“If you want to get somebody to do something, make it easy.”
To exemplify his statement above, Thaler suggested that if you want to get people to eat healthier foods, then put healthier foods in the cafeteria. Make healthier food easier to find.
In every meeting about how to use data to influence decision making, Thaler doesn’t say collect more data. He says, “Make it easy." 
What lessons can we learn from Thaler about making banking easy?
The right choices need to be easy to make.
Mighty makes it easy to find banks that share your values. We often say we’re like Trip Advisor for banks, showing you new layers of public data about your bank, specifically the communities being financed by your bank (and your money).
There are nearly 6,000 banks in the US to choose from. 12,000 banking choices if you include credit unions. Too many options can induce decision-making paralysis.
We’re setting up a convenient, digital storefront to access bank information.
We’re making it easy for you to know what your money is doing in your bank. And your choices when it comes to building your bank portfolio.
 2011 McKinsey Interview https://www.mckinsey.com/industries/public-sector/our-insights/nudging-the-world-toward-smarter-public-policy-an-interview-with-richard-thaler?cid=other-eml-cls-mkq-mck-oth-1710&hlkid=46c5592d2d204dfab731e777b564c39f&hctky=2457333&hdpid=98c37573-591f-4f33-b283-8bf1374da294
MIghty co-founder Megan Hryndza was quoted in Huffington Post along with other SOCAP scholarship company founders on what it takes to build a social impact business: “Focus on equipping people to take inspiration from your cause and make it their own.”
Half of the country has an investment relationship, but over 90% has a banking one. Case Foundation is organizing to bring Mighty to SXSW 2018 alongside Calvert Foundation and Swell Investing to talk about tech platforms that are engaging Milennials to manage their money for impact. Themes discussed at SXSW tend to be discussed all year, and tech bringing transparency into the flows of community capital for the advancement of communities should be one of them. Please vote for transparency of choice of impact for everyone to make it to the SXSW stage.
Rehana Nathoo, Vice President, The Case Foundation
Jennifer Pryce, President and CEO, Calvert Social Investment Foundation
Dave Fanger, Founder and CEO, Swell Investing
Megan Hryndza, Founder & CEO, mighty deposits
Rehana Nathoo, Vice President , The Case Foundation
Mighty is excited to have been named 1 of 125 social enterprises (1 of 48 in the US) accepted into the 2017 startup cohort awarded scholarships to SOCAP 17 in recognition of commitment to building businesses that will create a positive impact for communities. Mighty team will participate in a pre-SOCAP workshop for impact startup awardees on October 10, prior to attending SOCAP October 11-13 in San Francisco.
To see a list of all impact startups awarded, click here.
You’ve likely heard of the impact investing economy, in which $1 trillion dollars is expected to target socially and environmentally-accountable investments by 2020.
We hosted an event with Impact Engine featuring contributors to Fast Company and Forbes exploring the idea of choosing a bank that shares your values. SOCAP hosted an event the next day, and CNN covered the topic shortly after.
A look at Google searches over the past years suggests that the idea of people choosing banks with consideration for the bank’s financing focus is a growing movement.
Whether the public sees it as a form of impact investing or responsible consumerism isn’t as important as individuals and businesses being hungry to bank toward community outcomes that they can share in.
Since Mighty started talking about impact banking last year, we’ve engaged thousands of users and garnered millions of media impressions that reinforce the idea that people and banks coming together around shared values is an emerging market force, and a force for good.
I'm studying economics at the University of Chicago. I chose to intern at Mighty because I'm at the one of the best economic institutions in the world, but the growing sector of banking for impact is under-explored in the classroom. I think this will change, and I want be part of the team leading this change.
Working at Mighty, I spend a lot of my time talking to people. I find that in these conversations, the reasons I care to work here and build a product I want to see in the world are reasons that others care about, too. Here’s a running list of themes I talk about with everyday people in my everyday.
Why Does Mighty Exist?
Mighty exists to help people feel mighty with their money, starting with their money in the bank. Who doesn’t want to feel that?
Americans put a massive amount of money into banks: over $11 trillion in deposits. The average person has somewhere between a couple of thousand to tens of thousands of dollars in the bank. Not everyone has gobs of money, but everyone has something.
This money has an impact on communities and does so in your name, if it’s your money, whether its $1 or $1 million.
If you have money in the bank, your money is making an impact, touching lives, whether or not you realize it or not.
Our mission is to make it easy for your to access information about your bank, your money, and how to wield the influence with your money that you want.
People deposit money into banks in order to keep their money safe. When it comes to banks, people label convenience as knowing their money is kept safe, is earning some interest over time, and is accessible.
What most people don’t think about what happens to their money after they deposit it. Wouldn't it be convenient to know that?
Yes, and here's why:
Ever see Ferris Bueller's Day Off, in which the valet attendant takes Cameron's car out for a ride after the car is dropped off, but before he and Ferris return to pick it up?
Taking your money out for a spin is what banks do with your money while you're away.
Ever see It's a Wonderful Life, in which George Bailey and Henry Potter are both bankers, but run very different kinds of banks, with different motives?
If you have, or if you haven't, know: Not All Banks Are Created Equal
All banks do some lending and investing, but they do so differently.
Some banks take your money for a spin to invest predominantly in global markets or large business markets, while other banks focus putting your money into motion to serve local markets and small business markets. The focus of the lending and investing activity depends on bank certifications, leadership and business model, and is evidenced by public data.
Mighty harnesses public data to make clear how banks focus on lending to/investing in different markets and people (for example, the relative focus on local versus global markets, and local neighborhood lending versus Wall Street trading). Because when you drop off your car (or bike, or dry cleaning), you want to know what people do with your stuff, right? At Mighty, we hear most people would choose transparency of this information of what happens to their money while they store it in the bank, if it could be made available. So that's exactly what Mighty has set out to do.
What Choice Do We All Have In Banking?
Half of the country banks with one of a handful of the biggest banks.
Most of these people started their first bank account with the help of a parent at one of these banks, or at a bank that was acquired by one of these banks.
You may never have stopped to consider that you have more banking options than you realize. At one point, you started making your own decision (independent from your parents) about your preference for clothes, household items, and cars, but banking? Surprisingly, many adults report they've never known how to assess a bank independent from what their parents taught them. With over 5,800 banks in the U.S. that are equally safe and increasingly accessible (as money goes digital), Mighty helps individuals make the best decisions for their money to serve their values.
Care about your neighborhood? Small business? Local farms? Women-led enterprise? Investments in black communities? There are banks that serve these diversified interests. How about that for interest returns?
Mighty is the marketplace to help you search banks at the intersection of money and meaning, to best serve your interests.
Why Use Mighty?
Mighty allows you to see past the opaque wall of banking to transparently know your impact. We do this by digging through data that banks are required to report and making it legible. We make clear how your savings and checking is being invested. We help you choose to make your banking impact a powerful force for you and your world that matters to you.
Your deposit has always been an investment into creating value. Mighty makes your impact -- what it is and what it can be -- clear.
On June 13th, Impact Engine hosted a panel discussion and networking event Is the Bank Account the Onramp to Bringing Impact Investing Mainstream? by partnering with Coalition Impact in Chicago and Mighty Deposits, a technology platform that connects impact-oriented customers with impact-focused banks. The focus of the discussion panel was what banking for impact looks like now and its future opportunities.
Banking for impact is the power that people have to choose socially-responsible banks, such as those that power small businesses and local farms. By investing their money, banks can leave a positive social impact.
“There are lots of divestment conversations: fossil fuels, prisons, DAPL,” said Oscar Perry Abello, a New York City-based Fast Company + Next City journalist. "We’d like investment in bad things to stop, but we haven’t talked much about where to invest for good things. Where is our money going? Clean energy, businesses that hire re-entry workers?”
A platform like Mighty is one solution to this dilemma. A marketplace for people to shop banks at the intersection of money and meaning, Mighty helps people find banks that support the same causes they do.
"If you want your money to impact black neighborhoods, investing in black-owned banks in black neighborhoods is a big way you can impact that,” Abello suggests.
Mighty identifies these community-oriented banks and informs about their footprint. That way, people have better access to the power they’ve always had to invest in banks that share their values.
Panelists spoke of a depth to banking that hasn’t been explored much to date—the impact of individual deposits. A little known fact, banking for impact can involve just the simple act of depositing money in socially-conscious banks.
“When we’re talking about the power of banks and what they can do, deposits are the low-hanging fruit,” pointed out panelist Ronald Milsap, manager of Mission-Based Deposits at Urban Partnership Bank, one of two certified black-governed banks in the city of Chicago.
The discussion touched upon the current state of banking across the country.
“Bank consolidation over the past 30 years has resulted in global banks eating up local banks like it were a game of Pac Man,” CEO Megan Hryndza of Mighty pointed out. “In 1985, America had more than 14,000 banks. Today, there are just 5,800 – and of those, only 23 are black-owned and only 15 owned by women. What impact innovations can we learn from these banks, and how can we scale the best pratices?”
The panelists affirmed the potential of banks to create positive social impact in the future.
"The conversation is moving to: here are the ways banks can do good and be good businesses at the same time," Mark Newberg, Director of Impact Strategies for Wombie Carlyle, said.
“Are bank accounts the on ramp for mainstreaming impact investing? CDFI banks can partner with Mighty Deposits to appeal to impact investors by providing investment transparency and telling their impact story.”
At the University of Chicago, people talk as regularly about economics as the general population talks about pop culture.
So we asked economics students to talk economics in the language of pop culture, starting with the question:
“If you bank behaved like a celebrity, who would it be, and why?”
Click on the video to watch and/or listen to what they had to say.
Join Us Tuesday, 6/13 at Coalition Impact in Chicago, panel begins 5:15p, networking runs 6:30-7p. RSVP via Eventbrite, here.
Oscar Perry Abello is a New York City-based Fast Company + Next City featured journalist covering urban and community development across the United States, with a focus on the impact and role of finance in driving social and economic justice. Oscar is an alumnus of Villanova University, where he received a B.A. in Economics, with a minor in Peace and Justice Studies.
Ronald Milsap is Manager of Mission-Based Deposits at Urban Partnership Bank, one of two certified black-goverened banks in the City of Chicago. He previously worked with U.S. Bank. Ronald received his B.A. in Business from Morehouse College and serves on boards for My Block My Hood My City, Urban Initiatives and Christ the King Jesuit College Preparatory School.
Mark Newberg is Director of Impact Strategies for Womble Carlyle, where he supports the growth of business in the Impact Economy. His previous roles include Deputy Director of Global Innovation Summit, Senior Policy Advisor at the US SBA, and Advisor to the New Orleans City Council post Hurricane Katrina. Mark holds a JD from Tulane and writes on the impact economy for Forbes, HuffPost and The National Law Review.
Megan Hryndza is Founder + CEO of Mighty, a startup to shop banks at the intersection of money and meaning for customers prioritizing bank services focused on community and environmental investments. She previously worked with Starcom, Kraft, City First Bank of DC, the Global Alliance for Banking on Values, Women's World Banking. Megan completed her B.S. in Science at University of Illinois Urbana Champaign and certificate in Big Data Management from MIT.
“Collectively, money can get things done. There will be more than ever a receptive audience for understanding they know where they spend their money matters but where they keep their money matters too,” [Hryndza] said. “Mighty is further looking to see where we can deliver on opportunities without people having to wait for the next vote, by bringing a platform for action and influence everyday.”
Community Development Financial Institutions are focused on driving investment into America's low and moderate income neighborhoods.
In other words, in building up America's middle class.
Some community development financial institutions are banks.
Some are not.
The CDFI banks are real banks. Banks banks. The CDFI modifier is a designation given by Treasury that certifies that 60% or more of the loans made by a bank are directly in a low or moderate income neighborhood.
Below is where the country's CDFI banks are headquartered.
Remember when branch address was the leading identifier of a local bank?
(Disclaimer: some of us at Mighty do. Some of us do not. All of us identify local community both near and far. We have that in common.)
2017 newsflash: The bank down the street is no longer the local bank, necessarily.
The bank down the street may have one office or thousands, resulting in different ways your money is used to build different markets.
Mighty is building a platform framing the modern identifiers to spot local banks most focused on making local investments.
Banks are not vaults, they are engines.
They power economies. They are associated with power. They get people powered up. Note the common theme.
Here at Mighty, we know banks are designed to leverage the money of those who deposit money, in order to support the growth of those who need money. In other words, everyone.
In other words, banks are powered by community capital, and are designed to generate community wealth.
Our commitment to human-centered design drives us to build our technology by constantly talking to our growing Mighty community, learning about how our digital platform fits into real people's lives, and how it can deliver new connections across people and money.