David Korslund was 10 when he got his first line of credit to raise hogs and save for college; he’s been advocating for people-centric banking ever since

The former banker turned blogger and #valuesbasedbanking champion chats 21 questions with Mighty.

10-31-2020

Name: David Korslund

Age: Older than sin. (Actually, 66.)

Neighborhood: First a small town in Iowa, then Chicago, and currently Amsterdam in the Netherlands.

Occupation: I’m somewhat retired after years as a banker, initially with ShoreBank in Chicago (which was transformed into Urban Partnership Bank and then acquired by Providence Bank & Trust) and then Dutch-owned ABN AMRO in the U.S. and the Netherlands. I now enjoy living in Amsterdam with my Dutch husband, keeping busy with my blogging about ways people in the banking industry can do their jobs with greater accountability to social and environmental challenges (BoomerBanker.com) and consulting. I worked for 10 years with the Global Alliance for Banking on Values and recently joined the board of the Fulbright Commission in the Netherlands.

Where do you bank?

I bank with Sunrise Banks in St. Paul, Minnesota, for my U.S. banking needs.

Why did you choose it?

Sunrise Banks is mission-driven – it’s a certified B Corp, a member of the Global Alliance for Banking on Values, a certified CDFI (meaning it focuses the majority of its financing for the benefit of areas of greatest economic need, including communities of color), and it’s a strong community-focused lender. So I know my money is helping initiatives I care about. Importantly, the bank offers all the banking services I need and want, too, including access from across the pond.  

What’s the top thing you need in a bank?

I need all of my banks to be easy to use internationally.

Describe what you do in your job, in one sentence.

I provide advice to bankers on how they can focus their efforts on banking that supports individuals and enterprises good for people, planet, and prosperity.

 

What’s a piece of money advice you live by?

Don’t spend more than you earn. It’s great advice from Rob, my husband – a doctor who taught an experienced banker (me) a fundamental and needed financial lesson.

 

Are you a finance person?

Definitely.

 

What’s a finance person, anyway?

Someone who works with money, preferably as a tool to deliver value to society.

 

What was the name of the first bank you ever had an account with?

Security Savings Bank in Eagle Grove, Iowa, which was recently sold to another bank. The family that owned Security Savings Bank now continue in banking with Farmers & Merchants Bank in Manchester, Iowa - providing banking services that meet the needs of their community.

 

Do you remember anything from going to the bank as a kid?

I went to the bank when I was 10 years old to explain to the Chief Lending Officer, John Govern, why the bank should lend money to me and my brothers to finance the pigs we were raising as a 4-H project in order to fund my eventual college education.   

You remember the banker’s name. Wow.

I do. It was a small town and talking to a banker about how to finance my future goals seemed matter-of-fact, even though I was just a kid. My brothers and I ended up taking out a working capital line to pay for the feed to grow the pigs to maturity. In hindsight, it was unique that the bank was willing to lend us money when we were so young. A form of microfinance for micro (in every sense of the word) entrepreneurs. As a result, I left college and earned an MBA without incurring any student loans.

 

Tell us about a neighborhood that’s special to you, and why it’s special.

That has to be the city of Amsterdam where I’ve lived for nearly 25 years. It is a city built for the whole person with vibrant neighborhoods and culture. It is multi-cultural, too, with enormous diversity of people. And it’s possible to do everything safely by bicycle – my primary means of transport – which is good for my health and good for the environment

 

What’s the last thing you used cash for?

I recently used cash to pay for my dry cleaning as the payment machine of the small business was not working.

 

Cash, card, or mobile?

I mostly use my debit card. It’s easy to do throughout Europe since an efficient and very low-cost single payments infrastructure was created.

 

What finance-related article, book or movie has made an impression on you?

John Kay’s Other People’s Money is one of the best and most accessible books I have ever read about banking and finance. He removes the mystery from banking and highlights what banking should be.

 

If you were the professor of an economics class, what would your course be called

Values-Based Banking. (It’s actually the name of the short course I’ll be giving virtually in December.)

 

What does wealth mean to you?

Having sufficient income to live comfortably without concerns about the future.

 

Can you give a recent example of how you used your money to make a difference?

I buy nearly all of my food from local stores and local markets in order to directly support the merchants and producers who are delivering high quality food. I generally buy organic, too. Thinking about food production and consumption this way has become commonplace, we all know. I hope this same sort of thinking increasingly translates to finance production and consumption.

 

What will you do with all the bank interest you’ll earn in the next year?

I think I’ll be able to buy a very inexpensive meal at the local snack shop.  

 

Finish these sentences:

Money _

makes the world go round, the world go round.

Banks _

need to go back to the future by focusing on the communities where they operate – making them empowered, prosperous, and environmentally safe.

Mighty _

is as Mighty does. Pick a bank that shares your values.

 

What’s a dream you have for the world?

I dream that climate change and inequality – social and economic -- are seen as the problems they are, as problems that must be solved, and problems for which the solutions will add to the overall prosperity of the world.

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