In a compelling interview with Steve Dubb for Nonprofit Quarterly, journalist Oscar Perry Abello delves into the evolving landscape of community banking, drawing insights from his recent book, The Banks We Deserve. Abello highlights the critical role that locally owned and operated financial institutions play in fostering economic justice, particularly within marginalized communities. He contrasts the personalized, relationship-driven approach of community banks with the impersonal, data-centric methods of major national banks, emphasizing how manual underwriting and deep community ties enable more equitable lending practices. Despite the potential of community banks, Abello candidly addresses the challenges they face, including historical disinvestment and current racial disparities in ownership and leadership. He also explores the transformative potential of Community Development Financial Institutions (CDFIs), mutual banks, and public banks in rebuilding a more inclusive financial ecosystem. This conversation offers a nuanced perspective on how reclaiming community banking can be a pivotal strategy in addressing systemic economic inequities and advancing social justice.
