The landscape of financial equity in Indiana underwent a historic shift on April 23 as Generations Community Bank (GCB) officially opened its doors, becoming the state’s first-ever Minority Depository Institution (MDI) and the first new startup bank in Indiana since 2008.
Drawing a crowd of over 400 community leaders, investors and residents to its new headquarters at 2110 North Illinois Street, the ribbon-cutting ceremony marked the culmination of a multi-year effort to bring a culturally focused, community-driven banking option to the city.
Generations Community Bank operates as a for-profit institution with a distinct and urgent mission: to serve communities that the traditional banking sector has historically marginalized. The bank places a specific focus on Indianapolis’ Black and Chin populations, seeking to close a racial wealth gap that currently sees white families in Central Indiana holding an average of 7.8 times the net wealth of Black families, according to ??? (press release, website).
For Al London, a veteran local banker who left J.P. Morgan Chase & Co. to become the CEO of Generations, the launch is deeply personal.
“I was at a point in my career where I had begun to ask myself, ‘What do I want my career legacy to be?’ and ‘How will I be able to identify how I made a difference in the community that I call home?'” London said. “The mission is part of the DNA of GCB versus being a department of the bank. My mother taught me and my siblings the importance of helping your fellow neighbor. The opportunity to lead Generations Community Bank allows me to honor that teaching while making an economic difference in Indiana.”
Earning the MDI designation
Earning the MDI designation from the Federal Deposit Insurance Corp (FDIC). is a monumental milestone. To qualify, a bank must have at least 51% minority ownership or serve a primarily minority community and have a board of directors that is at least 51% minority. As of the end of last year, only 154 MDIs were operating nationwide.
The financial sector’s belief in the vision is already evident. While the initial goal was to raise $24 million in startup funds, Generations exceeded expectations by securing $29 million from 67 investors, including a dozen other banks.
Evansville-based Old National Bank played a major role in helping launch Generations, including working to secure regulatory approval. Several former and current Old National leaders sit on the new board, including former CEO Bob Jones, who came out of retirement to serve as the board chair.
“As the largest bank headquartered in the Hoosier state, we are thrilled to support Generations’ mission to drive economic growth and upward mobility for traditionally underserved individuals, families, and communities,” Old National Bank Chairman and CEO Jim Ryan said.
Rafael Sanchez, Old National’s Indianapolis market president and a lead organizer and board member for Generations, echoed that the goal is about creating lasting viability.
“Generations Community Bank is a true community bank with a mission to create economic mobility and viability for all Hoosiers,” Sanchez said. “Generations’ FDIC-insured financial products and services are specifically designed to address the challenges faced by underrepresented businesses and underserved individuals.”
‘Relationships over transactions’
Operating out of a 7,500-square-foot space on the first floor of the AES Indiana building, the Illinois Street location serves as the primary hub. However, the bank is already preparing to expand its footprint to meet the community where they are.
A second branch is slated to open next month at the Baxter YMCA, 7900 Shelby St., strategically located on the south side to serve Perry Township.
The bank intends to focus heavily on education alongside traditional banking, aiming to turn denied mortgage applications into financial coaching sessions and to provide entrepreneurs with alternatives to personal credit card debt.
“We’re not a Black bank. We’re not a Latino bank. We’re a mission-driven bank for everyone,” London said. “And if we do it right, we’ll build trust that lasts not just years, but generations.”
Contact multimedia reporter Noral Parham at 317-762-7846. Follow him on X @3Noral. For more news, visit indianaminoritybusinessmagazine.com.
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