OneMain Financial commits $50 million to support minority depository institutions (MDIs)
Military veterans will also benefit from the new commitment.
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OneMain Financial, the leader in providing non-prime customers responsible access to credit, recently announced a new $50 million commitment to minority depository institutions.
Doug Shulman, OneMain chairman and CEO, stated:
OneMain is focused on aligning our cash management strategy with our mission to improve the financial well-being of hardworking Americans, particularly those in underserved communities.
Distribution of resources
The $50 million commitment will be managed in equal parts through two J.P. Morgan programs:
- The first $25 million are deposited into the Empower money market share class to benefit two MDIs selected by OneMain: Florida-based Sunstate Bank and Michigan-based First Independence Bank. These banks provide financial services in underserved communities.
- The other $25 million are deposited in the Academy money market share class, a partnership with Academy Securities, a disabled veteran-owned and operated investment bank, to support training and services for veterans, including job placement and transition to civilian life services.
“Our recent commitments in support of minority depository institutions and military veterans are designed to help communities become more financially secure and build stronger economic futures,” added Shulman.
Get to know: OneMain
The organization, which has a significant presence in states where Sunstate Bank and First Independence Bank are located, operates 70 branches and employs more than 400 team members in Florida, as well as 25 branches in Michigan, where nearly 150 team members work.
OneMain continues to expand opportunities for underserved borrowers through its impact investing strategy, which highlights the following investments:
.@Newsweek has named OneMain one of the Top 100 #MostLovedWorkplaces for 2022, reaffirming our culture where team members have opportunities to thrive professionally & personally. https://t.co/K7EAxPZYSu pic.twitter.com/zWaAbWK4q2— OneMain Financial (@OneMain) October 11, 2022
- In 2021, it issued a $750 million Social Bond to serve credit-disadvantaged communities across the country, with a focus on women and minority clients.
- In 2022, it issued a $600 million ABS Social Bond, the first of its kind by a U.S. issuer. ABS Social loans serve borrowers residing in rural communities, of whom at least 75% are low-income borrowers with net annual income less than or equal to $50,000.
- It also previously committed $35 million in funds that support the Thurgood Marshall College Fund for students attending Historically Black Colleges and Universities (HBCUs), as well as environmental investments.
Reacting to the commitment
“It is great to see the leadership of OneMain Financial taking proactive steps to demonstrate inclusion. The collaboration between J.P. Morgan’s Empower share class with OneMain creates new opportunities for institutions like First Independence Bank. The interdependence in finance is critical to create inclusion that is sustainable,” said Kenneth Kelly, chairman and CEO of First Independence.
For his part, Lloyd DeVaux, president and CEO of Sunstate Bank, pointed out: “As we focus on providing capital and financial services to our community, OneMain’s investment in J.P. Morgan’s Empower share class will expand our reach in helping underserved populations across the state of Florida. We continue to focus on making progress on our mission to provide equitable access to resources and are empowered by the support of institutions like J.P. Morgan and OneMain Financial.”
“Academy Securities has been honored to share our social mission to benefit veteran hiring initiatives with OneMain. Over the years of our partnership, OneMain has consistently set a clear and elevated standard in fostering opportunities for individuals and organizations that represent and evangelize the value of military veterans and their service. As part of OneMain’s commitment to social responsibility, Academy serves to deliver impact by reinvesting in our platform and creating frameworks for transitioning veterans to build career equity, post service to nation,” said Chance Mims, CEO of Academy Securities.