In today’s landscape, where it can be challenging to purchase a home, it is critical for bankers to better understand their communities – and the changes taking place in those communities. It’s critical not only for those hoping to affordably purchase a new home, but good business for banks. Understanding local needs and fostering trust are essential for building lasting relationships with your customers. These strategies also drive customer financial stability and growth and are critical as banks enter new markets and build responsive products.
Creating authentic community partnerships takes time, flexibility and understanding, and is often at odds with market-driven demands and speed of returns. Community organizations are constantly putting in that time, building trust and uplifting residents on their journey to building financial stability. A deepened partnership with banks benefits everybody.
That’s one of the many reasons NeighborWorks America has partnered with the American Bankers Association (ABA) Foundation. Together, the two organizations are exploring the pivotal role affordable housing and community development organizations play in fostering resilient communities, and why banks should view those local, on-the-ground organizations as indispensable allies. The ABA Foundation’s Unlocking Homeownership Campaign is a critical resource for banks looking to learn more about these strategies, and we were proud to support this initiative.
"Strong community and bank partnerships are the cornerstone that ensures families can purchase and sustain their homes long term,” says Lindsay Torrico, executive director of the ABA Foundation. “By combining resources, expertise and shared commitment, NeighborWorks America and the ABA Foundation can empower individuals with the financial education and support they need to achieve stability and success. Together, we’re harnessing the power of America’s banks to strengthen communities and economic futures."
We know that as the future grows more complex, with ever-evolving economic and social challenges, the need for nuanced and longer-term services becomes even more critical for individuals and families. Building community trust requires patience and ongoing support for individuals and families navigating real-life challenges on their journey toward stability and success. Part of a community's resilience is based on a strong financial service ecosystem: community organizations and financial institutions working together seamlessly to support every neighbor at critical milestones.
This collaborative approach not only benefits individual customers but also creates a more robust, stable community — an outcome that supports the bank’s long-term success and sustainability. Engaging with community-focused initiatives is not just a philanthropic endeavor; it’s a strategic necessity for banks aiming to thrive in an evolving marketplace.
Our hope is that other financial institutions and stakeholders will come to know that community-based organizations are:
- Trusted advisors. Because they are deeply embedded within the communities they serve, community organizations have earned a reputation as trusted advisors. This trust is built on years of consistent, reliable support and centering residents' voices and the unique needs and concerns of the community in their solutions. For banks looking to deepen their community engagement, partnering with community-based organizations can provide a bridge to understanding and addressing local financial needs.
- Built for time and nuance. Community-based organizations operate on timelines that align with the real pace of community development and individual growth. They recognize that significant change necessitates patience and a customized approach reflecting the circumstances of each individual and family. Banks can benefit from this nuanced understanding of community dynamics, enhancing their ability to offer products and services that are responsive and beneficial.
- A critical anchor for financial resilience and wealth building. Community-based organizations serve as critical anchors, supporting individuals and families through various stages of their economic and personal development. From financial literacy programs to housing assistance and job training to small business development, these organizations provide a continuum of support that banks alone cannot. Through partnerships, banks can play a role in this broader ecosystem of comprehensive community development, contributing to the overall health and stability of communities.
By working together, banks and community-based organizations can create more durable support for the communities they serve – now and well into the future. Partnerships will help develop a pathway to make that vision a reality.
If you are interested in learning more about the pathways and value of partnering with these organizations, please visit ABA’s Unlocking Homeownership campaign, focused on equipping banks of all sizes with resources and training to increase homeownership education and counseling.
