Archive for month: December, 2025

By Elizabeth Fenton, WBA Communication Coordinator 

Wisconsin banks help families buy homes, small businesses open their doors, and communities prosper. Traditional financing, however, is not within reach for some borrowers — which is where Community Development Financial Institutions (CDFIs) save the day. These lenders often work side by side with banks to fill gaps in access and expand capital to neighborhoods that are under-resourced.

CDFIs have entered the national spotlight in recent months amid reports of significant staffing reduction within the U.S. Treasury’s CDFI Fund — the very program that supports these critical community lenders. This conversation is a palpable threat for bankers and CDFI leaders in Wisconsin. Cuts in technical assistance or delays in federal awards could ripple through local economies where every penny of flexible financing counts. As a result, CDFIs are turning to new partnerships and funding models in order to keep economic opportunity within reach for all Wisconsinites.

CDFIs in Wisconsin
CDFIs take many forms — banks, credit unions, loan funds, venture capital funds — but they share a common objective: expanding economic access. In order to be certified by the U.S. Treasury’s CDFI Fund, an organization must serve a target market, demonstrate that community development is its primary purpose, and pair financing with technical assistance. The Fund supports its members through competitive grants, capacity-building programs, and the CDFI Bond Guarantee Program. Wisconsin is home to 20 certified CDFIs that support affordable housing, small business startups, community buildings, and financial literacy initiatives. These programs serve as indispensable partners in bolstering self-sustaining local economies — especially in under-resourced neighborhoods and rural communities. CDFIs across Wisconsin have funneled billions of dollars into the state through loans, grants, and federal awards. Forward Community Investment in Madison has deployed more than $287 million toward projects like community health centers and affordable housing. The Wisconsin Native Loan Fund based in Lac du Flambeau helps families build stability and generational wealth through housing and small-business loans within tribal communities. Impact Seven, headquartered in Rice Lake, offers flexible financing for housing and community facilities across Wisconsin.

WBA sat down with Kathryn Dunn, president and chief visionary officer of the Wisconsin Women’s Business Initiative Corporation (WWBIC) — a statewide economic development organization and a WBA associate member. The organization was founded in 1987 and has provided more than $140 million in small business loans. This capital has helped thousands of entrepreneurs — many of them women, veterans, and people of color — start their businesses.

“WWBIC is a statewide economic development organization that provides small-business training and access to capital for start-up and early-stage businesses,” Dunn explained. “We partner with a number of banks across the state. The key to our successful partnerships is valuing what each partner brings to the work.” This very spirit of collaboration is pervasive across Wisconsin CDFIs. These investments help individuals build credit, increase available jobs, and set the stage for long-term community stability.

Why Banks Partner With CDFIs
For community banks, CDFIs can be trusted allies in reaching a customer base who might otherwise be overlooked. CDFIs specialize in serving under-resourced borrowers and often take on smaller or high-risk loans that traditional banks cannot carry alone. Partnerships between community banks and CDFIs can take different forms:

• Referrals and co-lending: Banks can refer clients who aren’t yet ready for conventional financing or share risk through loan participations.
• Investments and deposits: Banks may strengthen a CDFI’s lending capacity by providing capital through deposits, equity-equivalent investments, or targeted grants.
• CRA credit: Many CDFI-related activities qualify for Community Reinvestment Act (CRA) consideration, helping banks meet regulatory goals while directly supporting community development.

WWBIC leans into this partnership model with a quippy mantra: “Don’t Say No, Say WWBIC.” The program urges banks to refer clients to WWBIC instead of turning them down completely.

“Banks are our greatest referral source and we truly value that partnership,” Dunn noted. “We also invite our bank partners to serve as speakers at our classes, particularly around financial literacy, business planning, and understanding financials.”

Beyond financing, CDFIs provide coaching and technical assistance that help borrowers build credit and experience. Many CDFI customers eventually graduate to traditional bank financing — a trajectory that mutually benefits the borrower and the bank. “Our goal is to help businesses get to a point where they can access traditional bank financing and services,” Dunn said. CDFIs and banks mutually complement each other: Banks gain future customers while CDFIs fulfill their mission of expanding access to opportunity.

Challenges Ahead
CDFIs face ongoing challenges: limited access to capital, reliance on federal funding, and the logistical complexity of serving rural and low-income markets. Many CDFIs often operate with lean staffing and must juggle compliance.

The possibility of dwindling federal support has only intensified these pressures. Earlier this year, national reports suggested that staff reductions within the U.S. Treasury Department could weaken the CDFI Fund’s ability to administer grants and technical help.

CDFIs in Wisconsin continue to evolve in the wake of uncertainty. Many are exploring new partnerships with banks and philanthropic investors to diversify their funding sources. Banks, in turn, are discovering that strong CDFI relationships allow them to participate in the development of their own communities without shouldering all of the risk.

These important collaborations finance daycare centers, grocery co-ops, first-time entrepreneurs, and affordable housing initiatives — investments that make neighborhoods livable and local economies self-sustaining.

What Lies Ahead
Partnerships between banks and CDFIs benefit both the community and the banking industry. More families and small businesses gain access to capital, in turn making the local economies and banks that serve them stronger.

The CRA already encourages banks to invest in low- and moderate-income communities, but working with a CDFI often magnifies the output. A loan participation with a CDFI can transform a high-risk undertaking into a manageable one by combining the CDFI’s local connections with the bank’s balance sheet.

CDFIs also introduce valuable community outreach opportunities to banks. Many invite bankers to teach courses or serve on advisory boards. WWBIC and other organizations frequently invite bankers as guest speakers for classes on business planning and financial literacy, which gives bank employees a chance to strengthen community trust.

The health of the CDFI ecosystem depends on both federal support and on the strength of its partnerships, especially with local banks. The mutual respect between banks and CDFIs, as Dunn describes, lies in “valuing what each partner brings to this work.” At a moment when national headlines raise questions about the future of federal support, Wisconsin’s banking community offers a reassuring counterexample: collaboration between organizations drives success.

By Daryll J. Lund, WBA executive vice president and chief of staff

In an environment where industry shifts and regulatory changes arrive rapidly, it’s more important than ever for banking leaders to have a trusted circle of peers to turn to. The Wisconsin Bankers Association (WBA) is proud to offer this opportunity through its CEOnly/CFOnly Networks, designed exclusively for CEOs and CFOs of Wisconsin-chartered banks.

Membership provides direct access to colleagues across the state who understand the challenges — and opportunities — unique to leading a bank. Through the confidential email Q&A service, members receive timely, candid input from peers on the very issues they’re navigating. In addition, three in-person meetings each year provide time and space to build stronger relationships, exchange best practices, and hear from guest speakers, all in a collaborative setting. Breakfast and lunch are also included.

Over the past year, members exchanged more than 55 questions, offering practical insights and new approaches that helped banks anticipate and respond to emerging issues. Many leaders find that participation not only informs their decision-making but also strengthens their long-term planning. With annual membership priced at $350 (or $600 for both the CEO and CFO from the same bank), the networks continue to provide a cost-effective and highly valuable resource.

As the 2026 calendar year quickly approaches, now is the time to renew or begin your membership in the CEOnly/CFOnly Networks. By engaging in this community, Wisconsin’s CEOs and CFOs ensure they remain connected, informed, and better positioned for future success. Network members often share that the unique insights they gather through the Q&A service are incredibly valuable and that being able to quickly pose a question to a group of respected peers is well worth the membership fee.

If you would like to learn more or join the network, please contact me at dlund@wisbank.com or visit wisbank.com/ceonly.

Save the Dates!

Three CEOnly/CFOnly Network-excusive events will take place on:

• March 20, 2026 | Wausau
• June 12, 2026 | Wisconsin Dells
• October 16, 2026 | Madison

By Kathy Rolfs, vice president – chief marketing & communications at PremierBank in Fort Atkinson and chair of the 2025–2026 WBA Marketing Committee

As community bank customers increasingly turn to mobile apps, online banking platforms, and digital communications, we face a critical challenge: maintaining personal connections with both customers and the community. Trust, accessibility, and hometown relationships have long defined community banking, and set us apart from larger, less personal institutions. Yet as interactions increasingly shift from in-person to digital, these qualities can sometimes feel diminished. How can we ensure that “digital” doesn’t become “distant”? With thoughtful strategy, digital channels can strengthen the very relationships that make community banks unique, and it is our challenge as community bankers to keep this as our highest priority to distinguish ourselves.

Lead with Local Personality

Our greatest strength as a community bank is our local identity, and that should be clearly evident. Every digital touchpoint, website, social media channel, mobile app, and newsletter, should reflect our institution’s personality and community spirit.
Being involved in local events has always set community bankers apart, but sharing photos where employees are showing up to and volunteering at local events helps to tell our bank’s story and humanize our employees. Using familiar, friendly language that is personally written says more about the values of a community bank than any advertisement does. Ensuring that a community bank’s online presence feels authentically local, customers recognize the same warmth they feel when they walk into a banking location.

Show People, Not Products

While large banks often focus on products and promotions, community banks can set themselves apart by focusing on people. Telling real stories, such as how a small business grew with your support, how a family achieved homeownership, or how our staff rallied to serve during challenging times. Photos and videos featuring real customers and employees make the brand relatable and memorable.

Engage, Don’t Just Post

Social media shouldn’t be one-way communication. Responding to comments, congratulating local businesses, and sharing community updates all demonstrate attentiveness and care (and this also helps our social media following grow). Every reply is a digital handshake and an opportunity to build trust.

What About the Increasing Presence of Community Digital Groups?

Community groups on social media have become central to where important conversations are happening, and it’s important that financial institutions monitor these discussions. With over 253 million U.S. adults (about 73%) active on at least one social media platform (DataReportal, 2025), a well-defined social media strategy is essential for community banks to maintain visibility and meaningful connections. Platforms such as Nextdoor, Reddit, and segmented public or private city groups offer practical opportunities to build trust, engage directly with residents, and showcase the bank’s impact in the community.

Anticipate Open Dialogue Online and Strategize How to Respond in Advance

Having a clear plan for monitoring and responding to conversations in these spaces is critical to maintaining a positive communications approach with customers and community members. Recently, when our bank implemented a change that affected our customers, we held extensive internal discussions in advance to develop a strategy for managing anticipated public discussions online. We adjusted our monitoring schedule, added staff members to help, and outlined when and how to respond. When our designated bankers joined active conversations with a brief, helpful message provided a direct phone number and invitation for the customer to stop by, the discussion often shifted constructively and concluded quickly.

Blend Technology with Human Touch

Finally, technology should always complement, not replace, personal service. Features like online appointment scheduling, video calls, secure email, and video teller machines allow our customers to connect with our familiar faces, even from a distance. The goal isn’t to digitize our relationships but to make them more accessible and convenient. Technology can amplify what has always made community banks special: relationships built on trust, service, and genuine human connection.

In an era where technology continues to redefine how people interact with one another community banks can thrive in both the digital and personal worlds. The key is not to choose between technology and community, but to let each strengthen the other, ensuring that even as we innovate, our customers always feel connected to their hometown bank.