Independent Banker - July 2023 - 71

New market, new opportunities
In 2022, Detroit-based First Independence Bank became the first Black-owned bank to open a branch in
Minnesota, with the goal of creating greater economic prospects for underserved people. By Roshan McArthur
n the summer of 1967, riots rocked
Detroit. In a climate of increasing
racial tension, a police raid at an
after-hours bar led to protests, during
which 43 people died and almost
1,400 buildings were burned. In the
aftermath, Black leaders pushed for
reforms that would address the lack of
opportunity within their community.
In May 1970, because of
their efforts, Black-owned First
Independence Bank was born. Today,
the $500 million-asset bank is the
seventh largest Black-led financial
institution in the United States.
Last year, First Independence
Bank expanded into a new market,
opening two branches in Minneapolis.
They represent the first Black-owned
banking presence in Minnesota and
are located in areas easily accessible
by public transportation-a strategic
decision that ensures economically
disadvantaged people can get to
the branches.
The Minneapolis branches came
I
about with the support of five banks
that have a presence in the Twin
Cities. Kenneth Kelly, chairman and
CEO of First Independence Bank, says
the coalition of bankers understood
the importance of having a variety of
options available for all customers in
the market, especially the unbanked
members of the community.
These banks are lending their
support in a number of ways,
including capital, research and
marketing. As part of the initiative,
First Independence Bank customers
have access to financial education
and a loan program to help establish
or repair their credit scores, plus
fee-free ATM and debit card use at
multiple banks.
Name:
First Independence Bank
Assets:
$500 million
Location:
Detroit, Mich.
Building generational wealth
A key goal of First Independence
Bank is to increase home ownership
for Black members of the community.
According to 2021 U.S. Census Data,
home ownership for white residents
in the Twin Cities is 75.8% versus
28.5% for Black residents. " It's one
of the largest gaps in the country,
and most people don't know that, "
Kelly says. " And so that was really a
foundational business premise for us
considering moving there.
" We all know that home ownership
is one of the easiest, and probably
first, building blocks for the wealth
of a family, " he adds. " And so, if we
can make a difference there, then
we can make a significant difference
in the lives of all who live in the
Minneapolis-St. Paul area. "
Kelly says the reception First
" We all know that
home ownership is
one of the easiest
... building blocks
for the wealth of
a family. And so,
if we can make a
difference there,
then we can make
a significant
difference in the
lives of all who live
in the MinneapolisSt.
Paul area. "
-KENNETH KELLY,
FIRST INDEPENDENCE BANK
independentbanker.org // 71

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Independent Banker - July 2023

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