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Serving Amish and Mennonite Communities in Rural Wisconsin

Map created by Mark L. Louden

By Cassandra Krause

The Amish may not be the first group to come to mind when thinking about the fastest growing populations in the United States (and even the world), however these communities — whose populations double about every 20 years — play an important role in rural America, especially in Wisconsin. The Amish trace their heritage on this continent back about 300 years, when a small group of settlers immigrated to colonial Pennsylvania. According to the Max Kade Institute for German American Studies, today, there are approximately 350,000–400,000 Amish in North America (none remain in Europe), with more than 21,000 calling rural Wisconsin home. Wisconsin has the fourth-largest Amish population among 32 U.S. states and four Canadian provinces. Wisconsin also has a population of approximately 5,000 Old Order Mennonites as well as smaller numbers of other Mennonite groups and Old German Baptist Brethren. These groups are collectively described as Plain people, referring to their plain style of dress. Plain communities add to Wisconsin’s diversity and are familiar faces at many community banks.

Who Are the Amish and Mennonites?

Dr. Mark Louden, professor of German linguistics at UW–Madison and director of the Max Kade Institute, is a leading expert on the language and culture of Amish and Mennonites. He explains that Amish and Mennonites are Anabaptist Christians who practice believer’s baptism (babies are not baptized; rather, members formally join the church as teens/young adults) and are nonresistant, meaning that they do not engage in violence, including serving in the military. Old Order Mennonites and Amish wear modest, traditional clothing as an outward expression of humility. Women wear simple dresses and a veil, also called a prayer covering or kapp, over their hair. A larger bonnet is something that may be worn over the veil. Men wear solid-colored shirts and suits with wide-brimmed hats. The degree to which Plain people limit the use of technology depends on the group — as is the case in mainstream American culture in which some people may, for example, limit screen time or opt for a paper calendar rather than a digital one. Most Amish groups do not have electricity in their homes and do not own or operate motorized vehicles.

Farming and Beyond: Economic Activity

Plain people are active in a number of areas of the economy. The percentage of Amish families that depend on agriculture as their main source of income is only around 10–15% nationally, however, Amish and Old Order Mennonites live in rural areas and typically have large gardens. Businesses commonly owned by Plain people include carpentry — especially in Wisconsin where lumber is abundant — construction, and retail stores selling quilts, crafting supplies, bulk food, and baked goods. Outside of Wisconsin, some Amish are employed by non-Plain-owned businesses such as factories.

Finances in Amish and Mennonite Communities

Amish and Mennonite communities practice mutual aid, which sometimes involves assisting each other financially. Amish do not purchase commercial insurance or accept government assistance, so when there is a special need, the community steps in to help. They also do not typically take out loans other than mortgages for property, especially farms. Business loans are very uncommon, as the types of businesses Amish run are generally relatively small and do not require large amounts of capital to start up or grow. Amish farmers also do not use the types of equipment that other farmers may borrow larger sums for. Louden notes that “Amish and Mennonites are known for being extremely good customers. . . bad debt is hardly a concept.” He adds that if, in a rare instance, somebody were unable to pay their mortgage, the community would likely step in to, “not necessarily give them a lot of fish, but teach them to fish,” in order to help them with their money management and get them back on their feet. Louden emphasizes that financial responsibility is important in Amish and Mennonite culture.

Louden said that a misunderstanding persists that the Amish do not pay taxes, when they do, in fact, pay income and property taxes. The only exception has to do with Social Security and Medicare taxes. Members of Amish, Old Order Mennonite, and other churches who decline any form of government assistance may apply for an exemption from Social Security and Medicare withholding by filing IRS Form 4029.

Tips for Best Serving Amish and Mennonite Customers

“Small scale and face to face is preferred” when it comes to banking Amish and Mennonite customers, Louden explains. “Folks who work in banks in small communities in proximity to Amish and traditional Mennonites get to know their Amish and Mennonite customers well and see them a lot because they’re coming in there. . . they’re even using the drive through windows with their horse and buggy.” He said that there aren’t really special accommodations bankers need to make for their Amish and Mennonite customers; just treat them in the same friendly manner they do for any other customer. Amish and Old Order Mennonites are fully bilingual in Pennsylvania Dutch and English, so translation is not needed.

Having a hitching rack available for parking is considered a best practice for banks and other businesses (e.g. Walmart, Costco, etc.) that serve Amish customers. A 2021 Banking Dive article highlights how a community bank in Lancaster County, Pennsylvania (home to one of the largest Amish populations), took an even more creative approach. The Bank of Bird-in-Hand debuted their first “gelt bus,” which translates from Pennsylvania Dutch to “money bus,” for mobile banking in 2018. They now offer a fleet of bank branches on wheels to visit their Amish customers.

Amish and Mennonites tend to use checks most frequently and will balance their checkbooks by hand. They will use debit cards, and many will use credit cards; paper statements in the mail are usually preferred.

Photo identification may be a topic banks need to navigate, as many Amish do not like to have their photo taken due to religious belief. “Banks are required by law to establish a reasonable belief as to the true identity of their customers,” notes Scott Birrenkott, WBA director – legal. “Fortunately, the law does give some flexibility. In that regard, a bank working with Amish customers should consider how their policy is tailored given the unique lifestyle of the Amish.”

Sheila Kast, BSA Officer, AVP at Horicon Bank, explains that their bank’s Amish customers do have Social Security numbers and cards. For their Amish customers in the Kingston area, their deposit and loan operations team will verify the customer’s name in the Kingston Amish Directory. For verification of identification, Horicon Bank requires at least two of the following documents:

  • Social Security Card (required)
  • Property Tax Bill
  • Tax Document/Tax Return
  • Marriage Certificate
  • Birth Certificate
  • Fishing/Hunting License

On the lending side, banks may find that mortgages for Amish customers necessitate unique procedures since they do not have electricity or carry insurance. A lender may find difficulty working with investors if the borrower is unwilling to obtain homeowners insurance, requiring a tailored risk management approach. Birrenkott explains that some banks may have policies tailored to working with Amish borrowers. For example, Horicon Bank has indicated that policies from the Amish Aid (a non-profit alternative to commercial insurance) are accepted for insurance. The issue of flood insurance may offer less flexibility, however, because if the property is in a flood zone, Federal law requires flood insurance with no exception due to religious belief.

A Look Ahead at Wisconsin’s Rural Communities

As Wisconsin experiences shifting demographic and migration trends — particularly outmigration from rural areas as younger people flock to urban and suburban areas — it is important to recognize the role of the growing populations of Plain people in rural communities. Amish, for example, have on average six to seven kids per family, approximately 85–95% of
whom formally join the church as young adults, depending on the group. This is notable, as national trends show younger Americans identifying less and less with formal religion. Data from the Pew Research Center in 2015 showed the highest retention rates for Millennials were among Jews (70%) and those raised unaffiliated with a religion (67%), followed by those raised in the evangelical Protestant (61%), historically black Protestant (60%), Catholic (50%), and mainline Protestant (37%) traditions.

Plain people are woven into the fabric of their rural communities. As such, they play an integral part in the past, present, and future vitality of Wisconsin.

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Mind the Gap: Confronting Wage and Wealth Disparity

By Cassandra Krause

The wage gap, or the difference in earnings between different groups (most commonly women and men) — even in 2023 — continues to undermine the principles of fairness and equality in the workplace and society. The wage gap is compounded by the wealth gap, and the consequences on the economy and upward mobility can be far-reaching.

A Glance at the Numbers

The gender pay gap in the U.S. has not budged much over the last two decades. According to the Pew Research Center, in 2022, American women typically earned 82 cents on the dollar compared to men, which was about the same as in 2002, when women earned 80 cents on the dollar. Jumping back two more decades to 1982, women earned only 65 cents on the dollar compared to men. To put the current stats into perspective, Equal Pay Day in 2023 (which marks how far into the new year women would have to work to earn what men earned in 2022) fell on March 14.

March 14, 2023: Equal Pay Day

The earnings gap does not only apply to gender; factors such as race, ethnicity, disability, or being part of the LGBTQ+ community also impact the gap. For example, in 2022, Black women earned just 70 cents on the dollar compared to white men and Hispanic women earned only 65 cents on the dollar, according to Pew Research Center data. Generally speaking, the more marginalized identities a person has, the likelier the wage gap is to widen.

United States Wage Gap Graph

Source for charts: Pew Research Center

What Accounts for the Gender Wage Gap?

Wendy Baumann headshot

Wendy Baumann, Wisconsin Women’s Business Initiative Corporation (WWBIC)

As Wendy Baumann, president/CVO of the Wisconsin Women’s Business Initiative Corporation (WWBIC), puts it, “Sexism is alive and well.” She emphasizes that what employers are measuring matters, including the number of women in leadership and management roles, “If you have one or two women — or zero — on your board, in your C-suite, do you think that’s right?”

Baumann also serves on the steering committee of Milwaukee Women inc, a non-profit organization that was created in 2002 to change the face and quality of leadership in the Wisconsin business community. In their 2022 Research Report, Milwaukee Women inc celebrates 20 years of advancing inclusive leadership and noted that the percentage of Wisconsin public companies with three or more women directors increased from 6% in 2003 to 44% in 2022. In that same period, there was a six-fold increase in the number of newly elected women directors and 4.5-fold increase in the number of women of color directors at Wisconsin’s top 50 public companies.

While experts often — and rightfully so — focus attention on women in leadership roles, women at all stages of their careers in nearly all professions are paid, on average, less than their male peers. Women are also overrepresented in services occupations with lower pay and underrepresented in managerial and STEM occupations with higher pay and better benefits. While there is no one clear explanation for the gender pay gap, many point to factors such as women tending to have more unpaid caregiving responsibilities outside of work, bias in hiring and promotions, and a lack of opportunities for mentorship.

Wisconsin Wage Gap

Inequality in Accumulated Resources

It is not only wages that are unequally distributed in the U.S., but wealth as well. Wealth includes assets such as real estate, savings, investments, and ownership of businesses. The wealth gap is fueled by the wage gap and influenced by other factors like intergenerational inheritance, access to quality education, and systemic barriers to accessing capital.

Building equity in a home and being able to transfer that wealth across generations is an important factor. U.S. Census Bureau data shows the homeownership rate in the U.S. at 66.0% in Q1 2023, with gaps exposed when the data is sliced by race and ethnicity: Black alone (45.8%); Hispanic (of any race) (49.7%); all other races (58.2%); Asian, Native Hawaiian, and Pacific Islander alone (61.6%); and non-Hispanic white alone (74.4%).

Furthermore, household portfolio composition and investment behavior play a significant role in the wealth gap. A 2019 Survey of Consumer Finances by the Federal Reserve showed that, on average, white households have a higher percentage of their wealth in stock equity than Black households. In a 2022 article published by the Federal Reserve Bank of Minneapolis, author Lisa Camnen McKay writes, “Housing has appreciated since the 1950s, but stock equity has appreciated five times as much. . . Now that income convergence has stalled, the difference in the capital gains rate experienced by Black and white households is the main factor pushing their wealth apart.”

Wealth inequality is significant because of wealth’s impact not only on an individual’s buying power, but its impact on a person’s quality of life, access to education and health care, retirement savings, and ability to set the next generation up for financial success.

The Role of Bankers in Closing the Gap

Bankers in Their Communities

Jason Fields

Jason Fields, Madison Regional Economic Partnership (MadREP)

Both in their roles as financial industry professionals and as community members, bankers can be part of the solution to the wage and wealth gap. Jason Fields, president and CEO of Madison Region Economic Partnership (MadREP) says, “If we’re looking at cutting the wealth gap in half — or eliminating it — then I think we have to attack this from a number of perspectives. . . you have to attack the trust issue, you have to attack the education issue, and then we have to really get into what tools and vehicles are there that can generate wealth.”

Fields, a former banker himself, encourages bankers to show up in person to community events to understand what underserved communities are going through and build relationships. He also notes the contributions bankers make in providing financial education. Providing financial education is both the right thing to do and is good for business. Fields says offering free trainings — and partnering with chambers, places of worship, etc. — can reach an untapped segment, “Because [some community members] don’t understand finances, because they don’t know who to trust, they never talk about it. . . When you have bankers showing that warm relationship, that will help feed the community to go ‘hey, here’s somebody I can trust that won’t make me feel like “less than” because I don’t know this stuff.'”

WWBIC is a statewide community development financial institution (CDFI) that focuses on individuals who face barriers in accessing traditional financing — in particular, women, people of color, veterans, rural, and lower wealth individuals. WWBIC also advocates for a holistic approach to closing gaps, encompassing relationships, education, and access to capital. WWBIC’s loan customers receive business coaching as part of their loan package. When it comes to lending, “banks don’t want to say ‘no,’ but they have their rules and regulations on what they can do in their box,” says WWBIC’s Baumann. “WWBIC’s box is bigger.”

Michael Hetzel

Michael Hetzel, WWBIC

Michael Hetzel, WWBIC statewide director of lending, points out that referring a customer to a CDFI is good for the bank because they preserve the relationship as a trusted advisor. The customer still needs the banking relationships for checking, deposit, merchant services, etc., and they may refinance the loan they received from a CDFI with the bank once they have built credit. “The banks do put their money where their mouth is,” says Hetzel, who was a banker for 25 years before joining WWBIC about a dozen years ago. “They help us help those people that maybe they can’t help.”

Bankers as Employers and Business Community Leaders

Banks can also play a role as employers in closing the gap. The 2022 Women in the Workplace report by McKinsey & Company, in partnership with LeanIn.org, draws attention to the “broken rung” at the first step up to manager. For every 100 men promoted to first-level manager at the end of 2021, 87 women overall and 82 women of color were promoted (note: numbers assume an equal number of men, women, and women of color at the entry level). In addition, a 2019 workplace and financial equality survey conducted by TD Bank revealed that over one-fifth (22%) of millennial workers feel that being out about their sexual orientation to more senior staff will hurt their career advancement.

The McKinsey report emphasizes the importance of flexible work and good managers, and listed key practices for driving progress toward gender equality:

  • employee benefits,
  • career development programs,
  • data tracking, and
  • trainings.

Baumann underscores that more awareness-building is necessary, beyond just observing Equal Pay Day. She points to formal and informal mentoring as important components for providing opportunity to employees who are underrepresented at senior levels. One example of rethinking mentoring would be if a company’s golf outing is primarily attended by men, then they should choose something else that is a more inclusive way for employees to network and gain mentors.

Looking Ahead

By raising awareness and increasing our understanding of wage and wealth gaps, we can help to bridge the divide. Bankers can take further steps to address bias and discrimination in their workplaces, continue to promote financial literacy in their communities, and grow partnerships with businesses and non-profit organizations to increase access to capital for underserved populations. In doing so, they will help to create a stronger and more prosperous future for all.

 

*WWBIC is a WBA Associate Member.

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Executive Letter: Benefits for Every Member of the Organization

Rose Oswald PoelsBy Rose Oswald Poels

In the last year, bankers from around the state have made an incredible effort to make the most of their membership with the Wisconsin Bankers Association (WBA). When 2022–2023 Chair Dan Peterson began his term last June and spearheaded the member-wide initiative to increase engagement, it was impressive to see the multitude of ways in which bankers chose to connect with both their peers and the Association as a whole.

June, the beginning of WBA’s fiscal year, is the perfect time to reassess your involvement in the Association and uncover the programs, groups, and opportunities available for all. I encourage bank leaders to continue to emphasize the employee benefits brought forth by WBA and support all members of the bank in finding the engagement opportunities that are the most meaningful for their professional growth.

The WBA Advocacy Officer program connects individuals with an interest in public policy to opportunities to act and provide input on legislative and regulatory policy items. Working alongside members of the WBA Government Relations team and other Advocacy Officers from throughout Wisconsin, these banker volunteers regularly communicate with bank officers and directors, coordinate advocacy programs such as “Take Your Legislator to Work” days and fundraising initiatives, as well as stay abreast of the latest legislative and governmental issues.

BOLT, or Building Our Leaders of Tomorrow, members represent Wisconsin’s current and emerging bank leaders. The free program is focused on providing bankers with the opportunity to learn, network, and expand their leadership in the banking industry. In addition, bankers are encouraged to attend the leadership summits — held twice per year — to make connections, discuss challenges, and explore new opportunities for personal and professional development.

The CEOnly and CFOnly Network is open to all CEOs and CFOs currently employed at a Wisconsin-chartered bank. The group, which focuses on networking and idea sharing related to Wisconsin’s banking industry, provides bankers with the platform to anonymously ask questions and receive advice as well as connect with peers at up to three in-person networking events.

The newest benefit — WBA’s Diversity, Equity, & Inclusion (DEI) Employee Resource Group (ERG) — was formed in 2022 as a safe space for bankers of historically underrepresented backgrounds to meet and hold open-forum discussions. The ERG, led by a popular speaker at WBA events, Dr. Alonzo Kelly, provides a virtual space to share ideas and experiences, ask questions, and learn from others.

WBA’s Compliance Forum is the Association’s premier Wisconsin-specific program focused on presenting updates and addressing the latest hot topics in compliance. In addition to gaining in-depth information on key issues, members have the opportunity to attend several Compliance Forum events throughout the year to connect with peers, gain CLE and other compliance certifications (subject to approval), and gain access to the Forum’s Google Group.

WBA Connect is a collection of banker-only peer groups designed to keep bankers connected and help one another grow. The free benefit — currently representing bankers with interests in DEI, enterprise risk management, human resources and organizational development, marketing, retail banking, and technology and operations — provides excluive access to the related Google Group as well as the possibility to coordinate in-person networking meetings.

Not to mention the various digital resources — including, but not limited to, the Best Practices Library, Legal Call Program, and Banconomics.com — our Association works to ensure that you and your staff have the resources relevant with the work you do each day and the opportunities to get involved, stay informed, and make an impact both in your community and throughout the banking industry.

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Women of GSB

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Columbia Savings & Loan Association Positively Impacts Black Communities, Banking Industry

Wisconsin’s first Black-owned bank nears 100 years of service

By Hannah Flanders

In 2024, Columbia Savings & Loan Association, Wisconsin’s first — and currently, only — African American-owned bank, will reach 100 years of service. The institution primarily serves low- and moderate- income families of Milwaukee County. Since 1924, the institution, founded by Ardie and Wilbur Halyard, has prioritized providing access to capital to members of its community.

Now led by Ernest Jones and Will Martin, Columbia Savings & Loan Association — the sixth oldest Black-owned bank in the U.S. and oldest Black-owned bank in Wisconsin — continues to see its mission to ensure low- to moderate-income families have access to capital where others may see risk.

Black-owned Banks in America

Like all banks, the history of Black-owned banks in America is storied and complex. The first Black-owned bank — True Reformers Bank — was founded in 1888 in Richmond, Virginia. While the bank didn’t open until April of the following year, narrowly following the opening of Capital Savings Bank in Washington D.C. in October 1888, True Reformers operated in 24 states and spearheaded the idea of closing the racial wealth gap. Although True Reformers Bank closed in 1910, by 1934, the number of financial institutions owned by people of color numbered over 130.

According to the Federal Reserve Bank of Chicago, only nine Black-owned banks — including Columbia Savings & Loan Association — remained in business during the Great Depression. During and following the civil rights movement of the 1950s and 1960s, which encouraged Black individuals to empower themselves, Black-owned banks throughout the U.S. again experienced growth. In 1970, the Department of the Treasury began the Minority Bank Deposit Program, which would help strengthen and preserve minority-owned banks. One year later, in 1971, North Milwaukee State Bank was chartered.

In addition to the pressure Columbia was facing as one of 50 Black-owned banks nationwide, the institution also was severely impacted by the savings and loan crisis of the 1980s. The disaster, caused by excessive lending and taxpayer bailout guarantees, claimed nearly 45 of Wisconsin’s savings and loan associations and 35 Black-owned banks across America. Although Columbia Savings & Loan endured, the Federal Reserve Bank of Chicago (FDIC) notes that losses caused by the crisis fell disproportionately on to the minority-owned sector.

At the turn of the 21st century, Milwaukee welcomed Legacy Bank as its third Black-owned bank. However, the Great Recession of 2007–2009 claimed both Legacy Bank and North Milwaukee State Bank, and only 23 Black-owned banks, including Columbia Savings & Loan, remained throughout the country.

While many Black-owned banks continue to recover from the obstacles of the last several decades, the need for institutions willing to invest in low- to moderate-income communities is becoming even more critical.

Ingrained Discrimination

When Columbia Savings & Loan Association began operations in January 1925, the beginnings of redlining were just emerging in Wisconsin. Published in the Milwaukee Journal just months before, members of Milwaukee’s Board of Realtors discussed the development of a City Negro District or “Black Belt,” restricting housing for Black residents to the west side of Milwaukee. Ultimately, the concept of racially based redlining was implemented, and thousands of Black families were forced to live within a concentrated space of fewer than 40 blocks. This discrimination in housing remained solidly in place until the Civil Rights era, when the Fair Housing Act of 1968 was signed into law.

As time progressed, and the Federal Housing Administration (FHA) was created as part of President Franklin D. Roosevelt’s New Deal and the National Housing Act of 1934, home affordability for people of color became even more difficult. With the FHA identifying low-risk neighborhoods as predominantly white communities, white families had the ability to access inexpensive, insured mortgages that allowed them to move to suburban areas and build the generational wealth to start businesses or enroll in college.

On the other hand, minority populations across the U.S. were segregated into urban neighborhoods where FHA-insured mortgages were not available. With lower home values and less homeowner wealth to be reinvested into repairing aging homes or starting new businesses, cities struggled to expand their schools and other infrastructure.

Unfortunately, the poverty cycle continued, making it difficult for individuals to qualify for mortgage loans. Legislation such as the Fair Housing Act of 1968 was enacted into law to protect people from discrimination when engaging in housing-related activities such as renting or buying a home. The Brookings Institution suggests that “channeling the flow of [credit] to specific neighborhoods and demographics is key, as across-the- board increases in [credit] supply to all racial groups lead to the growth of urban segregation.”

Columbia Savings & Loan is keenly aware of its unique ability to help local individuals and families buy homes, fund businesses, and build places of worship. Located in the heart of Milwaukee’s Amani neighborhood and serving communities living in Wisconsin’s poorest ZIP code, Columbia Savings & Loan Association has been dedicated, from the very beginning, to helping strengthen the surrounding neighborhoods by helping families gain and sustain the capital necessary to own their own homes.

“We see ourselves as a bank that makes a social impact,” states Will Martin, Columbia Savings & Loan Association’s executive vice president. “With the community fabric in many of our neighborhoods being torn away, many of the families that approach us are seeking a place where they will be respected and understood. These individuals are commonly intimidated by the financial sector or have not had success in the past with other lenders — it is our responsibility to, in a culturally respectful manner, find a solution that best serves their needs.”

Shaping Milwaukee

As Forbes highlights in an article titled “Black-owned Banks Are Key to Lifting Economic Fortunes of Black Communities,” Black-owned banks have historically held an in-depth understanding of the disenfranchised communities they serve. These banks have the unique ability to introduce many un- and underbanked communities — including 54.8% of Black households, according to the Federal Deposit Insurance Corporation’s (FDIC) 2021 National Survey — to the financial sector. In addition, many minority-owned banks have made capital more accessible to low- to moderate income populations as they commonly approve a higher percentage of loans to Black applicants.

The Independent Community Bankers Association (ICBA) echoes this sentiment in its article, “Why We Need Black-owned Banks.” The article states that, in order to begin closing America’s racial wealth gap, it is necessary that our society strengthens the institutions dedicated to making a positive impact on underserved and underbanked communities.

“A diverse banking sector is critical to meeting the unique needs of our diverse country,” states WBA President and CEO Rose Oswald Poels. “Banks such as Columbia Savings & Loan Association play a unique role in integrating individuals into the financial sector and providing them with the resources for financial security. By equipping all banks to economically empower disenfranchised individuals, we are ensuring that all banks, and their surrounding communities, succeed.”

As the bank has largely been credited for the development of the Halyard Park neighborhood — named for the founders of Columbia Savings — the institution is dedicated to helping residents of Milwaukee obtain mortgages.

As of March 2023, only around 29% of Black individuals throughout Wisconsin owned their own home, according to the National Association of Realtors. While homeownership remains low among all people of color, Black individuals have a higher likelihood of facing disadvantages such as appraisal bias and loan denial.

“As banking attorney for Wisconsin’s Department of Financial Institutions (DFI), I had the sorrowful task of helping close one of the two Black-owned banks Milwaukee lost in the wake of the Great Recession and vowed to do all I can to preserve Columbia Savings & Loan Association,” explained Ernest Jones, Board Chair and CEO. “Homeownership is the first step toward building generational wealth, and Columbia has helped thou-sands of families achieve that first step. However, with seven out of every ten Black families in Wisconsin renting — often at greater expense than owning — our community needs Columbia Savings & Loan Association more than ever.”

Looking Ahead to the Next Century

Looking ahead, Martin emphasizes the benefit of partnerships throughout the industry.

“In our first 100 years, Columbia focused on building personal relationships; walking with our customers through their challenges,” says Martin. “In this new century of service, we hope to amplify our impact and serve exponentially more families by leveraging technology.”

Port Washington State Bank was the first financial institution to make a contribution toward Columbia’s Centennial Fund. Additional contributions from several others are currently pending.

As such, Columbia Savings & Loan Association announced in February 2023 its Centennial Fund. With Columbia’s growing role in its community, the fund is a means for financial institutions and other corporations to help the bank through non-depository funding to modernize operations, digital infrastructure, and staff training, in addition to helping to increase the impact Columbia has on the local, underserved community. At the time of this writing, the bank has raised over $50,000 in corporate contributions and more than $2 million in new deposits which, according to Martin, will help up to 25 low- to moderate-income families buy homes and take the first steps towards their financial security.

“Like all banks, Black and minority-owned institutions are subject to intense regulatory burden and challenges in attracting talent,” says Oswald Poels. “However, these institutions also lack access to capital and are subject to the changing urban demographics. It is critical for the continued success of these institutions and the communities they serve that we all consider the ways in which we can assist banks like Columbia Savings & Loan in gaining the capital they need to reinvest and help empower disenfranchised individuals.”

Centennial Fund

In February 2023, Columbia Savings & Loan Association announced its Centennial Fund. The fund is a way for financial institutions and other corporations to help the bank through non-depository funding to modernize operations, digital infrastructure, staff training, and to also help increase the impact Columbia has on the local, underserved community.

The $50,000 in corporate contributions and more than $2 million in new deposits raised so far, will help up to 25 low- to moderate-income families buy homes and take their first steps towards financial security. For more information on how you can partner with Columbia Savings & Loan Association, Wisconsin’s only Black-owned bank, contact Will Martin at 414-374-0486, or WMartin@ColumbiaSLA.com.

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Executive Letter: Creating Safe and Meaningful Spaces

Rose Oswald PoelsBy Rose Oswald Poels

As part of WBA’s Diversity, Equity, and Inclusion (DEI) plan, I have been hosting monthly Employee Resource Group (ERG) calls allowing member bankers from historically underrepresented groups to have a forum to share ideas, issues, and advice in a safe, confidential environment. The meetings are never recorded to help ensure that conversations are kept private among those attending. Attendees from past ERG meetings — which began last June — are from all size banks across the state, including some that have their own ERG program.

Each meeting, I receive feedback on the structure, content, and timing of the meetings so that they evolve to be meaningful and relevant for the attendees. I leave each meeting feeling that we’ve provided value to the participants even when the conversations may have been difficult.

WBA’s monthly ERG meetings will continue in 2023 and, with the input from the participants, they will be a little more structured so they are meaningful, and bankers know in advance the topics that will primarily be discussed. I encourage you to share this opportunity with anyone in your bank who is in a historically underrepresented group as I know they will find value in the discussion.

For our January meeting, I am very excited to announce that Judge Derek Mosley, director of the Lubar Center for Public Policy Research and Civic Education at Marquette University Law School, will be joining us as our guest speaker. Judge Mosley recently spoke for WBA during a complimentary all-member webinar on Unconscious Bias and was very well-received. He will open the ERG meeting with a presentation on black history, focusing on the Things Your History Teacher Didn’t Tell You followed by time for open Q&A with forum participants.

The January ERG meeting will be held via Zoom on Friday, January 27 from 1:00 – 2:00 p.m. and there is no charge to participate. Please share the following link with your historically underrepresented staff and encourage them to sign up for the meeting: wisbank.com/community/dei/erg-signup/.

If the timing does not work for this meeting, WBA ERGs are held monthly and information regarding future meeting dates and topics is shared through our Wisconsin Banker Daily e-publication. I am incredibly proud of all the work WBA has been doing with guidance from our Board of Directors in the DEI space, and very excited about the mission of WBA’s ERG to date. With your encouragement to your staff to take advantage of this opportunity, I look forward to its continued growth and success this year!

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Bank On Greater Milwaukee Empowers Families Statewide

Over three years of connecting consumers to financial services and products

By Hannah Flanders

From youth to formerly incarcerated individuals reentering society, Bank On has helped in connecting thousands of underbanked individuals with financial services across the state. Since the launch in 2019, Bank On Greater Milwaukee — a local coalition of the national Bank On movement — has assisted more than a dozen financial institutions in certifying specific accounts that comply with the standards set by the Cities for Financial Empowerment Fund (CFE Fund).

What is Bank On?

Across the country, Bank On has led financial institutions of all sizes to connect with individuals who lack a banking relationship. By identifying barriers to opening and sustaining healthy accounts, Bank On has not only connected more individuals than ever with banking services, but also helped promote safe and appropriate accounts in mainstream financial institutions. In the greater Milwaukee area, the Bank On initiative has specifically targeted its focus on local youth, first-time job seekers, and families with disabilities in gaining access to financial services.

“Our goal as an organization is to assist financial institutions in establishing the initial relationship with unbanked individuals,” states Constance Alberts, program director at Bank On Greater Milwaukee. “By laying the foundation for our community members to build wealth and reach their goals, these customers are able to move to the next level — taking out loans or mortgaging a new house. This first step builds confidence and trust — an important aspect of maintaining loyalty well into the future.”

In partnering with Bank On, banks have the opportunity to be advocates for underserved groups and the ability to connect them with the appropriate services and products for their unique situations.

Bank On’s Impact in Wisconsin

In October, the Federal Deposit Insurance Corporation (FDIC) released its biennial National Survey of Unbanked and Underbanked Households. The 2021 survey demonstrated a decrease throughout the country in unbanked individuals. In Wisconsin, the unbanked population represented only 2% of the over 5.8 million residents in the state.

This encouraging total is further underscored by the 4% decrease in unbanked individuals throughout the greater Milwaukee area since the previous survey in 2019.

As Bank On expands into the greater Milwaukee community — with numerous institutions offering products and accounts and even more institutions seeking certification — Cheryll Olson-Collins, secretary-designee of the Wisconsin Department of Financial Institutions (DFI), emphasizes the importance of financial soundness in Wisconsin’s communities.

“Being ‘banked’ isn’t just an adjective; it is, in fact, a critical component of financial stability. Having and using a basic checking account both facilitates critical everyday transactions, and at the same time provides a core foundation for other financial successes.”

Why Bank On?

With a mission to connect consumers to safe, affordable bank accounts, Bank On provides a unique opportunity for banks looking to support members of their communities.

“By joining the growing number of Bank On Greater Milwaukee partners, banks will engage with the community in new ways, reach new unbanked or underbanked customers and bring them into the financial mainstream while supporting Community Reinvestment Act (CRA) efforts,” highlights Olson- Collins. “Bank On partners play a critical role in making it possible for people to access the financial mainstream and spearheading a more inclusive financial system.”

Currently, Bank On Greater Milwaukee has 52 members, which include various community-based organizations, financial institutions, government partners, and network partners. Additionally, over 165 individuals are part of the coalition’s network.

Heather MacKinnon, WBA vice president – legal and member of the Bank On Greater Milwaukee leadership team, states that the connections made available through the coalition are one of the greatest resources available for bankers seeking to support their community — even if they are outside of Milwaukee County.

“It is impressive how the community participants and financial institutions involved with Bank On Greater Milwaukee work to connect persons with a need for safe, low-cost banking products with banks that offer a certified Bank On account,” she says. “It is a helpful tool for banks working on their diversity, equity, and inclusion (DEI) initiatives to partner with their local community groups working on similar missions of financial empowerment.”

How to Get Involved

While Wisconsin’s sole Bank On coalition is currently based in and only serves residents of Milwaukee County, banks throughout Wisconsin have the ability to get involved.

“With so much work to be done in granting unbanked individuals access [to safe financial services,] it is impossible to tackle alone,” said Alberts. “It is critical that financial institutions throughout the state acknowledge where there is a need for safe, affordable banking and promote what is good in their communities.”

In addition to connecting Milwaukee-area residents to certified, safe, and low-cost products, the Bank On Greater Milwaukee initiative aims to support consumer financial education throughout the state and assist financial institutions in recognizing the need in their communities.

Community involvement, according to Alberts, is a significant way that banks can begin serving the low- to moderate income members of their communities and is a pipeline for additional benefits for both the consumer and the financial institution. Bankers looking to get involved with Bank On Greater Milwaukee, learn more about the coalition, or certify an account with the CFE Fund should visit bankonmilwaukee.org.

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Partnering with Wisconsin’s Diverse Small Businesses

Empowering underrepresented communities, expanding our economy

By Hannah Flanders

Bankers are always focused on their mission of serving their communities, and lending to local businesses is at the heart of that mission. As more small businesses are looking to start or expand, access to capital remains a challenge, and disproportionately so for firms owned by people of color, according to the Small Business Credit Survey conducted by all 12 Federal Reserve Banks. Partnering with community-based organizations such as chambers of commerce allows both banks and the organization to assist historically underrepresented individuals to gain access to the credit they need.

Diverse Chambers and Community-based Organizations in Wisconsin

In Wisconsin, there are 20 chambers of commerce and community-based organizations with a specific mission of supporting underrepresented individuals that WBA is familiar with. While our state boasts many other chamber models representing specific cities and regions, demographically focused chambers are established with the purpose of representing a specific group of business owners.

Of these chambers, many underrepresented groups — including veterans, people of color, and women — have the ability to access local networks of fellow underrepresented business owners, and can acquire resources and opportunities to gain knowledge from other professionals.

Ruben Hopkins, chairman and CEO of the Wisconsin Black Chamber of Commerce, works to help prepare Black business owners in Milwaukee to take out small business loans. “Money’s in the paperwork,” Hopkins states. “Our organization works to establish a more aware business owner and save bankers time. When my business owners walk into the bank, you know they’re prepared with whatever is necessary [to complete the application].”

How Your Bank Can Get Involved

Over the last several years, Wisconsin bankers have become even more intentional in hiring employees who represent their local communities so customers “seem themselves” when they enter the bank. This certainly helps foster connections with the bank from these represented groups.

Another way banks are developing relationships with historically underrepresented businesses is by becoming involved with specific ethnic or community-based chambers and organizations.

As bankers already know, one of the easiest ways to become involved is to become a member or sponsor a chamber event. This effort alone highlights to community members the care and support bankers have for local businesses. According to a study conducted by The Schapiro Group, consumers are 19% more likely to think favorably of a company that is involved with its local chamber.

From galas to art fairs, summits, and workshops — the are many opportunities for banks to assist and support ethnic chambers and other community-based organizations in their mission to help marginalized small business owners reach new heights.

For the Wisconsin Black Chamber of Commerce, the 3,000 Black Business Challenge is a boot-camp program that sets Black business owners up for success. The program features education on a wide range of topics including financial literacy, business accounting, and funding.

Not only does the 3,000 Black Business Challenge boot-camp offer a great opportunity for Black business owners to hone a diverse range of financial skills, but bankers who volunteer as partners will also play a significant and memorable role in the growth of these businesses.

Additional ways of getting involved include serving on an organization’s Board, contributing to loan funds, or making an increased effort to work with business owners who are members of the partner organization.

Benefits for Banks and Communities Alike

For banks looking to increase their Community Reinvestment Act (CRA) performance or become involved in new ways within their community, partnering with community-based organizations offers various opportunities to achieve those goals while assisting underrepresented small business owners.

According to the Association of Chamber of Commerce Executives (ACCE), historical circumstances, population fluctuations, differing ambitions, and the needs of employers have all played a role in the formation of different chambers. Chambers today remain effective for representing business in a certain location or those focused on a certain demographic.

Partnering with a local chamber of commerce that serves underrepresented business owners is an excellent opportunity for bankers to assist entrepreneurs in the expansion of their businesses and support the growth of the local economy, all the while establishing the bank as a trusted partner for diverse members of the community.

In addition, banks may find that working with local chambers will offer them opportunities to reach new talent. Many local chambers offer members the opportunity to post recruitment ads on
their websites, offering an additional avenue for talent recruitment that may reach a new population of individuals.

In developing a connection with an ethnic chamber or other community-based organization, banks are able to widely support the growth of marginalized small businesses in the communities in which they serve. This commitment to Wisconsin’s underrepresented entrepreneurs will provide not only an opportunity for banks to reach into historically underserved communities but offer creative ways in which to support diverse local businesses and the growth local economies.

Ethnic Chambers and Other Organizations in Wisconsin

* Indicates WBA Associate Membership.

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Paving the Way for Women in Banking

Wisconsin bankers reflect on the importance of women in industry leadership roles

By Hannah Flanders

In Wisconsin, we are lucky to not only see a growing number of women emerging into leadership positions in banks across the state, but to be surrounded by women in leadership who advocate on behalf of our industry each day.

Women Leading Wisconsin’s Banks

As of September 2022, women in the position of president and/or chief executive officer represented 16* of the over 170 banks in the state. While this number has grown over the course of the last several years, a lack of female mentors and leaders advocating on behalf of their female peers is often cited as a reason why the banking industry continues to be heavily male dominated.

Unfortunately, the stark gender disparity often begins even before individuals enter the workforce. According to UW–Madison’s School of Business, the school has 66% male alumni and only 34% female. This issue is not just the case in Wisconsin. Gender inequality is seen throughout the country at many of the largest business schools and is often reflected in the number of women pursuing careers in banking or finance.

Donna Hoppenjan, president and CEO of Platteville’s Mound City Bank and chair-elect of the WBA Board of Directors, states that “women bankers need to be confident and surround themselves with successful leaders in banking.” To her, a critical aspect of this success is having the confidence to attend training and to build relationships with bankers from other institutions.

It is without a doubt that the banking industry has come a long way — even since the turn of the century. According to Jenny Provancher, CEO of The Equitable Bank S.S.B. in Wauwatosa, leaders today are more likely to find a more diverse mix of both male and female decision makers, rather than there being only one or a few women in the room.

“The true nature of a woman is to be in a leadership role, not to change others, but to be the change we wish to see and then lead by example. The world of banking is changing at a rapid pace; what better time than now to encourage our women bankers to pursue leadership positions and lead by example.”

“For us women fortunate to be in a leadership role, we need to make sure we are visible and serve as mentors. We also need to encourage and develop women early in their career. Awareness of the opportunities is a must.”

Creating Opportunities to Grow

In addition to encouraging team members to attend conferences and training events, and network with other professionals — bankers agree that creating a space where every individual feels they have the opportunity to learn, grow, and advance in their careers is a critical step in ensuring that qualified individuals are able to reach their full potential, no matter their gender.

Hoppenjan states that the best reward of working in leadership is empowering others to make decisions and allowing them to grow in their positions.

Dawn Staples, president of Superior Savings Bank, noted that she was able to forge her own opportunities by having the confidence to volunteer and assist on other projects throughout the bank during her down time.

“I was connected to, and mentored by, some pretty seasoned supervisors, employees, and management from all areas of the bank by doing this,” she states. Bankers agree that confidence, and the ability to advocate for yourself and your abilities, is a critically important factor in establishing a team player and a leader.

“I believe a diverse group of people who have the skills needed to fill leadership positions is needed — a qualified mixture.”

“Be open to learning by showing enthusiasm and saying yes to new projects outside of your comfort zone that build your résumé and expand your expertise.”

Gender Diversity Allows for a Well-Rounded Board

In the board room, diversity is key not only in best serving all members of the community but in recognizing the strengths of every team member. The American Banker magazine reported that the push for greater opportunity for women in executive positions must start at the top. This means more gender diversified boards will recruit diverse CEOs who will ultimately recognize the efforts of and promote a greater diversity of individuals into leadership positions.

As Provancher puts it, “[individuals should] surround themselves with good people who don’t see gender as an impediment to success.”

Peshtigo National Bank President Kelly Heroux states that “the banking industry is changing at an exponential pace, and new opportunities are constantly developing. Women who have the motivation and drive to take on leadership roles will excel in this industry.”

In this, leaders should not only invest in the professional development of women in the bank but ensure there is representation at every level.

Heroux adds that both men and women have attributes that can be leveraged within the bank. “It’s important [as a leader] to know your own abilities and your colleagues’ strengths, then build your teams around those qualities.”

“Believe in yourself! Have faith in your abilities! Without a humble but reasonable confidence in your own powers, you cannot be successful or happy.”

“Out of high school when I didn’t know what I wanted to go to college for, my dad said: ‘Go down to the Savings and Loan and see about getting a part time job there — the people are nice. While you decide what to go to school for, learn everything you can about everything; you never know when it will come in handy.’”

“Women often pay great attention to detail and have the ability to juggle multiple projects simultaneously. In addition, a woman’s perspective at the table brings another viewpoint that hasn’t always been considered in the past.”

“Sometimes the best thing you can do for a loan customer is to tell them no.”

Leading Our Leaders

The Wisconsin Bankers Association (WBA) has been led by Rose Oswald Poels since 2011. In 2016, the Board of Directors welcomed its first female Chair Cynthia Erdman, who at that time served at Partnership Bank, Tomah, and is currently with Farmers and Merchants Bank of Kendall. Additionally, the Association is expected to welcome Donna Hoppenjan as WBA’s second woman as chair of the Board in the coming year.

Several women have served in leadership roles at Wisconsin’s Department of Financial Institutions (DFI), the state’s regulatory agency, including Secretary-designee Cheryll Olson-Collins, her predecessor Kathy Blumenfeld, and the division of banking’s Acting Administrator Kim Swissdorf.

Not only do these women at DFI and WBA play a substantial role in supporting the state’s banking industry, working tirelessly to advocate on behalf of all Wisconsin bankers at both the state and federal levels, for many, they serve as examples of mentors of powerful women in our industry and encourage more women every year to pursue their passions, break stereotypes, and create opportunities for both themselves and their institutions.

“I believe that an institution is doing their stakeholders — both internally and externally — a disservice if they were not promoting based on merit.”

“It is extremely inspiring and encouraging to see so many more women in executive roles in banking than ever before. Work hard and don’t be afraid to be the loudest voice in the room.”

Recognizing the Strength of Women in Leadership Roles

One frequently cited barrier to women holding leadership positions is stereotyping. In banking, male leadership has been at the forefront for centuries and unfortunately our society has been slow to recognize the misconceptions placed on women taking on these positions.

Staples states that there isn’t a one-size-fits-all solution to the challenges women often face when looking to expand their career, however, it’s important to not give up.

Although our society as a whole has become increasingly more accepting of women in positions of power, women are often being held to a higher standard than men. According to a Pew Research Center study conducted in 2018, 60% of people say that women have to do more to prove themselves than men to become top executives in businesses.

“Misconceptions such as leading too emotionally, distractions at home, and work/life imbalance affect all leaders — not just women,” said Heroux.

As our business practices and societal norms continue to evolve throughout the 21st century, many women have received greater recognition for their efforts throughout the pandemic. In fact, many businesses found that their women leaders took initiative and acted with resilience during the crisis.

An article by Forbes highlighted that aggressive, transactional approaches to business have created lower engagement, higher turnover, and the emulation of toxic behavior. As diversity, equity, and inclusion (DEI) become a greater focus of Wisconsin banks, it is important to consider how leadership style plays into this, and how both men and women alike can re-think traditional models of leadership.

It is clear that though the banking industry, and the financial sector in general, is no longer as divided as it once was, there is still work to be done in leveling the playing field for men and women alike by creating opportunities for women to expand their careers and encouraging more diversity at every level.

While women continue to push against tradition and gain leadership positions by demonstrating their abilities, seeking knowledge and information, and taking on greater responsibilities, Provancher encourages women to “actively get involved in making your bank a better place.”

“Know and understand the value that you can offer and to be able to advocate for yourself and the experience you bring to the table when necessary.”

“Over the course of my banking career, I have seen more and more opportunities open up for women. It is important that we continue to provide networking opportunities, leadership development, and think outside of the box. I also would encourage all women to speak up, try new things, and promote yourself — you are your own best cheerleader!”

“Be your authentic self, always! If they don’t like you for you, it is not going to be a good fit long term. Get involved! With your team, with your community, with peer groups, with trade associations. Never stop learning! Banking is constantly changing, and it is a must to stay well-informed of issues, changes in the industry, and the evolution of products and services.”

*As of June 2023, women in the position of president and/or chief executive officer represented 16 of the over 170 banks in the state.

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Executive Letter: Supporting the Professional Development of Our Historically Underrepresented Bankers

Rose Oswald PoelsBy Rose Oswald Poels

As our Association continues its efforts to support bankers of historically underrepresented backgrounds, finding new ways to invest in the personal and professional development of every one of our employees is top of mind.

WBA’s employee resource group (ERG), which launched in June, continues to provide a safe space for our colleagues of color and individuals of underrepresented backgrounds to engage in employee-led conversations once a month related to their identity or feelings, ideas, and developments in the diversity, equity, and inclusion (DEI) space.

The next meeting will be held Thursday, September 22 at 10:00 a.m. The conversation will include the topic of professionalism and an open discussion with staff from Peoples State Bank, Wausau regarding their involvement with the local Hmong community. Bank leaders, managers, and HR professionals are encouraged to forward this opportunity on to bankers who may benefit from this inclusive forum.

Additionally, in conjunction with WBA’s DEI Plan to provide professional development opportunities and foster a welcoming, inclusive culture, I am excited to announce that WBA will be offering three educational scholarships to select WBA events this fall.

These scholarships, offered in partnership with the Federal Home Loan Bank of Chicago, will be presented to bankers of historically underrepresented backgrounds — including, but not limited to, individuals of African American/Black, Asian/Asian American/Desi, Indigenous, Hispanic/Latinx/Spanish origin; members of the LGBTQ+ community, people with disabilities, and those part of a religious minority. Please share this scholarship opportunity with members of your staff as they look to expand their career within the banking industry.

WBA’s three educational scholarships will cover the registration fee of the selected program along with any overnight accommodation, as needed.

Scholarships are available for:

I encourage bankers to take this chance to invest in their professional development and share these various opportunities with members of their staff. It is ever so important for the prosperity of our banks and the communities in which they serve that individuals of all backgrounds and experience levels are supported in their pursuit of new degrees of leadership and opportunities to expand their career and network.

Apply Now

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questions@wisbank.com

608-441-1200

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Madison, WI 53718

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