The results are in!
As an association devoted to mission-driven banks, we regularly take our members' pulse on topics that are top of mind for them. Last year, the National Bankers Association (NBA) published a member survey of priorities which explored key trends in the minority depository institutions (MDI) sector and provided insight into challenges and opportunities. In our new 2025 survey, we ask our members about economic conditions, growth strategies, technology, talent, and more. In addition to sharing our findings, we also share quotes from our members to provide additional context and insight.
TOP TEN KEY TAKEAWAYS
1. Economic Confidence
74% of MDI leaders are very confident about the economy.
Much of the optimism in the sector derives from strong balance sheets and demand for loans in local markets.
2. Growth Strategies
78% of MDI leaders are looking to grow their bank into the next asset size band and offer new digital products.
3. Top Three Loan Products
The types of new loan products that are highest on MDIs priority list include:
79% digital account opening
58% real time payments
53% consumer digital loans
4. Investment Priorities
Branch Expansion:
In support of creating sustainable growth, some banks highlighted expanding their reach within their local or neighboring footprint. For example, Rey Garcia (Texas National Bank, Mercedes, Texas) noted that their bank is set to "...open one [new] branch, and we'll probably start construction on another one. Here in our local market, the branch networks still seem to be very popular, and that helps us a lot with our community.”
New Market Opportunities:
Some banks plan to expand into new geographies and markets. For example, Carlos Naudon (Ponce Bank, Bronx, New York) shared that "Ponce aspires to be a national bank and to access Hispanic borrowers in markets outside of just New York City." He also stressed that as a publicly traded bank, growth strategy is shaped in part by what will happen to the stock price, a theme that other publicly traded banks mentioned as well.
Smart and Steady Growth:
Robert James II, Carver Financial Corporation, Savannah, Georgia), stated, “You don't want to grow quickly. You want to grow smartly. So we're growing organically to match the capital that we have at the holding company level.”
5. Pain Points
Many of our member banks continue to struggle with obstacles such as deposits, technology costs, and talent shortages.
63% deposits
58% technology
37% talent
Deposit Obstacles
Regarding deposits, Sydney King (Commonwealth National Bank, Mobile, Alabama) shared that: “We've seen a lot of the bigger banks down here providing these aggressive interest rates on their deposits, which makes it really difficult to compete. We elected not to chase those dollars and let a lot of those dollars walk away. But we feel that that competition is going to go away as rates are starting to come down.”
6. Recruitment Challenges
94% of MDI leaders said recruitment was difficult or very difficult.
7. The two largest areas of talent need are:
Technology (72%)
Operations (67%)
8. Technological Barriers
While technological innovation is vital to remaining competitive, it presents challenges as well. The biggest barriers include
76% implementation costs
59% difficulty integrating with existing systems
53% lack of technical expertise
9. Artificial Intelligence Opportunities
Banks believe that two areas where AI can provide advantages involve enhancing customer interaction.
44% customer service
25% marketing
Personal Service Still Matters
While increasing customer-facing technology is vital, our members continue to emphasize the importance of high-touch in-person banking. Benita Lefft (Optus Bank, Columbia, South Carolina) shared, “we recently adopted standards for all of our employees, whether they are internal or external, and [these standards] will have quantitative goals that we track around delivery of customer service.”
10. Community Impact
MDIs are working diligently to improve the lives of the members of the communities they serve by providing high-impact products and services.
93% host financial literacy workshops
71% finance affordable housing programs
57% offer micro loans for small and minority-owned businesses
Summary
Mission-driven banks play a crucial role in fostering economic growth and financial inclusion in underserved communities. Despite facing obstacles such as limited capital access and technological barriers, these banks continue to provide critical financial services, including small business loans, affordable housing support, and financial education. Their work is vital in promoting economic resilience in the communities they serve.
About: The National Bankers Association is the only association solely devoted to supporting MDIs. If you would like to become a member or strategic partner, click here.
To learn more about our Foundation's work, click here.
To view other research, click here.
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