Assets at minority depository organizations grew from $246 billion in 2010 to $329 billion in 2022, with a considerable quantity of that development happening in between 2019 and 2021, according to a brand-new report on MDIs by the National Bankers Association Foundation. The report likewise discovered that almost 2 in 3 MDI branches (62%) lie in postal code with hardship rates greater than the nationwide average, compared to 38% of non-MDI branches.
There were 147 MDIs in the U.S. since the 4th quarter of 2022, with more than 1,500 branches, according to the report. The typical MDI branch lies in a postal code that is 49% nonwhite. A quarter of branches lie in postal code where the MDI is the only physical bank present, with MDIs the only branch readily available to 3.5 million individuals.
MDI properties grew by 24% throughout the COVID-19 pandemic, which held true for the banking market as an entire, according to the report. The development in properties was driven in part by the Treasury Department’s Emergency Capital Investment Program, which invested $3.1 billion in the sector, along with by economic sector financial investments driven by racial equity in the after-effects of the murder of George Floyd.
“Our analysis demonstrates that MDIs continue to serve a crucial role in increasing financial inclusion for underserved individuals and communities,” the report stated. “As mission-driven banks, MDIs are key institutions in the broader work of closing the racial wealth gap, particularly through creating opportunities for homeownership and entrepreneurship.”