First Independence Bank in Detroit, which provides financial services to underserved and minority communities, has received $12.5 million from OneMain Financial in New York as part of its commitment to support minority depository institutions (MDIs) and military veterans.
OneMain Financial, part of OneMain Holdings Inc in Evansville, Ind., is a leader in offering nonprime customers responsible access to credit. The commitment to First Impendence Bank, founded in 1970 and the sole African American-owned bank in Michigan, was part of $50 million OneMain has committed.
The company’s commitment is managed in equal parts through two J.P. Morgan Asset Management programs. In addition to First Independence, $12.5 million was deposited in the Empower money market share class to benefit Sunstate Bank in Florida. Both banks provide financial services in underserved communities.
The remaining $25 million was deposited in the Academy money market share class — a partnership with Academy Securities, a disabled veteran-owned and operated investment bank in New York — to support training and services to veterans, including job placement and transition services for veterans moving from active duty to civilian life.
“OneMain is focused on aligning our cash management strategy with our mission to improve the financial well-being of hardworking Americans, particularly those in underserved communities. Our recent commitments in support of minority depository institutions and military veterans are designed to help communities become more financially secure and build stronger economic futures,” says Doug Shulman, chairman and CEO of OneMain.
OneMain has a significant presence in Michigan, operating 25 branches and employing 150 people.
“It is great to see the leadership of OneMain Financial taking proactive steps to demonstrate inclusion. The collaboration between J.P. Morgan’s Empower share class with OneMain creates new opportunities for institutions like First Independence Bank. The interdependence in finance is critical to create inclusion that is sustainable,” says Kenneth Kelly, chairman and CEO of First Independence.
OneMain states it continues to expand opportunities for underserved borrowers through its impact investment strategy. In 2021, the company issued a $750 million Social Bond to serve credit-disadvantaged communities around the country, with a focus on women and minority customers.
The institution deepened its commitment in 2022 with a $600 million Social ABS Bond, the first of its kind by a U.S. issuer. Loans from the Social ABS serve borrowers residing in rural communities, at least 75 percent of whom are lower- income borrowers with annual net incomes of less than or equal to $50,000.
In addition, OneMain has previously committed $35 million to funds supporting the Thurgood Marshall College Fund for students attending historically black colleges and universities and environmental investments.
OneMain Financial offers personalized solutions available online and at 1,400 locations across 44 states. For more information, visit onemainfinancial.com.
For more information about First Independence Bank, visit firstindependence.com.
