CommUNity CapitALL - Fluid Ice Foundation

Project CommUNity CapitALL

We are promoting and supporting local/community based financial institutions who serve underserved and underrepresented communities.

We call upon you to join us by making a deposit and/or leveraging your local/community based financial institutions for your financial needs, to allow them to grow/serve more people within their local communities.

Who are the underserved?

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Credit Challenges

This includes consumers who have subprime credit scores below 600 or are unscorable because of a lack of sufficient credit file information. Approximately 36% of U.S. adults, or 91 million people, are credit-challenged.

Low to Moderate or Volatile Income

These circumstances impact approximately 26% and 20% of U.S. adults, or 66 million and 51 million consumers, respectively. Almost one-third of American households (29%) live in “lower class” households, as wealth gaps continue to increase.

Unbanked or Underbanked

These consumers struggle with access to mainstream financial products to meet their needs. This group is estimated at about one in four U.S. adults, or 63 million people. Unbanked and underbanked rates are higher among individuals with lower education.

How are the underserved impacted?

6% of Americans are unbanked (have no bank account whatsoever) and must rely on alternative financial products and services (payday loans, check cashing services, money orders, pawn shop loans, etc), many of whom often have interest rates as high as 600%, leading to a vicious debt cycle and ultimately posing a threat to their financial well-being. 16% of Americans are underbanked, and although they have some sort of bank account, they also rely on alternative financial services.

≈ 71% of U.S. consumers, or approximately 178 million adults, are Financially Coping or Vulnerable, while only 29%, or 70 million, are Financially Healthy.

– Financially Underserved Market Size Study (2019) and FinHealth Spend Report 2021

Key Benefits of Local Banking

There are 5,400+ credit unions in the US, an increase of 2.4% since 2021. Credit Unions held $1.88 trillion in 2020, up from $1.59 trillion in 2019. Community banks provide nearly 50% of small business loans and 82% of national agricultural loans in the US. Additionally, local banks employ over 765,000 Americans, helping strengthen the grassroots of the community.

Lower Fees: Profits earned are returned to members through reduced loan rates, fewer fees, & other perks (ATM fees, etc). 43% of small banks’ checking accounts had no monthly fees, compared to 25% at large banks.
Full Menu of Services: Most community banks offer the same services and products as competitors, tailored to the needs of their local customer base.
Platform for Small Businesses: Community banks are a valuable source of networking opportunities, connect with local suppliers, service providers, & potential clients, helping fuel the growth of the local economy.
Collaborative Lending: Local banks often join together to offer loans to small businesses, helping them serve more members of their communities.
Better Decision Making: Community banks look at an individual’s character and personal qualifications rather than just a credit score. They make faster decisions in-house with fewer hoops for you to jump through.
Quality Service: Local banks pride themselves on serving their community and forming deeper relationships with their customers, giving them the personal attention they need.

Community banks are deeply rooted in their communities (many serving their areas since the late 1800s), as banking policies are made by the people who live in your community and know it best. When you bank locally, your community bank is channeling your money back into your neighborhood. Local banks also give back with charitable donations to local organizations.

The Role of Microfinance

Globally, there are 10,000 Microfinance institutions (MFI's) which are critical for funding SME's, an important source of jobs and economic growth. The global MFI industry is worth $120 billion (projected to grow to $394.8 billion by 2027), and has impacted the lives of nearly 140 million borrowers.

The Global Stage

Microfinance is used worldwide, with loans smaller than $100 offered in some developing economies.
In the United States, microfinancing refers to loans of $50,000 or less. There are 60 million rural Americans, many of whom rely on microloans.
The average microloan globally is $885. Microfinance loans had a 98% repayment rate pre-pandemic.
80% of microfinance borrowers are women, and 65% are from a rural background.
Self-employed poor make up half of the labor force in the developing world.
South Asia accounts for 60% of global microfinance borrowers – more than 85 million people, and Latin America is the largest microfinance borrower in terms of value, at nearly $48 billion.
MFI’s are important for developing economies such as India’s, where more than 80% of people work in the informal sector.
70% of the population in Sub-Saharan Africa lives in rural areas, where financial services are scarce.

Growth of Microfinance

In India, microfinance has been instrumental in creating opportunities for low-income households by providing credit access to 64 million unique live borrowers who were previously beyond the reach of traditional financial services.
In India, microfinance loan disbursal is growing at a rate of 20% in terms of volume.
Lending to microfinance borrowers in India, mostly women in rural areas, has increased by 900 percent over the last six years—from $2 billion in 2012 to $20 billion 2018.
The total outstanding amount of African MFIs has increased by 56% since 2012, and the number of borrowers increased by 46%.
The microfinance industry in Africa is one of the fastest growing, with a gross loan portfolio of $8.5 billion and a consumer base of 8 million people.
In the US in 2020, $85 million in SBA microloans were approved to 5,890 people, of which minority-owned businesses received 51.5% of SBA microloans and women owned businesses received 46.6%.

Microfinance is important in our global economy, by helping provide funding to underserved communities, and empowering them with the ability to aspire for a better economic livelihood.

"Microfinance does not get the credit it deserves, yet it is the lifeline for the people at the bottom of the pyramid." - James Mugambi (MD of Premier Kenya, a micro-lender)

The time to act is now.

Change the future today.

If your company is looking to deposit some of your bankable dollars with a local/community based financial institution, contact us, and we will be glad to team up with you to facilitate the same.

We want to partner with you!

If you share our mission of financial inclusion, and would like to partner with us, please contact us, and we will be glad to join hands with you to further our goals.

If you are a local/community based financial institution, we would be happy to support your efforts to further impact the communities you serve.

Sold on the benefits and positive social impact of using a local financial institution?

Find a local/community based financial institution near you to get started.

Tell us about your experiences!

Whether you recently switched to a local/community based financial institution or have been a long time member, or have been a beneficiary of a microloan, share with us your success stories, and we will be glad to publish it!

Many people’s lives have changed, thanks to local financial institutions. Learn more about some of these success stories.

Africa: When microfinance gets involved with SMEs

Philippines: Improving housing microfinance access for low-income households