I grew up poor in Missouri’s foster care system, living in a couple of foster care agencies in North City. In that time, if you needed money fast, you had three options: a payday loan, a title-loan or a pawn shop. In many areas, that’s still the case.
This month marks exactly one year since I joined Midwest BankCentre as CEO, having most recently been the CEO of the United Way of Greater St. Louis. My move was based on the desire to have an even bigger impact in St. Louis and stemmed from my understanding of systems and power. Systems are either designed to help, maintain status quo or hurt. Financial systems are incredibly powerful and resistant to change. And those who have been on the losing end are more likely to stay there unless we collectively change our behavior and expect more from local community based banks who are not insulated from the needs of local communities and businesses.
I don’t think it’s too much to expect more from your financial institution. I don’t think it’s too much to expect financial institutions to ensure that all parts of our community have access to capital.
Unlike the big-name, national banks you see advertised on TV, local banks are part of your community. They won’t just take your deposited money, they’ll return it to the community in the form of loans, too. They can do this because they know their communities and their customers. When you walk into a local bank, you are walking into a place where the people behind the counter may be your friends and neighbors. They know what’s going on in your community, and they know the challenges you face.
As a result, local banks have a business model that allows them to be more flexible with their credit and lending policies, and more creative in the kind of products and services they provide. Local banks also create products and services that save customers money, give them more access, and keep them out of the payday loan establishment. Last year my bank rolled out a PayDay Alternative Loan. It has no fees, and you can borrow up to $1,000, depending on your credit score.
At that heart of community banks are values just like yours: Enjoying financial security. Having access to emergency cash without paying ridiculous rates to payday lenders. Not living from check to check. Owning a home. Creating a business. Maybe even having money to travel someday.
The result can be powerful. For example, at Midwest BankCentre $95 of every $100 on deposit stays in the community, and each one of those dollars circulates numerous times throughout the local economy.
I invite you to put your money where your heart is and Bank Your Values by partnering with Midwest BankCentre on your checking, savings and loans.
To learn more you may call (314) 631-5500 or toll-free at (800) 894-1350 or visit www.midwestbankcentre.com.
