How TD Bank Bolsters The Community Reinvestment Act

Frank Capra’s ‘It’s a Wonderful Life’ brought us a time when banks were a cornerstone of the well-being of their communities. Everybody knew everyone’s name and banks were true neighbors. The award-winning movie’s altruistic protagonist, George Baily, was even willing to give up his dreams so he could help his little town of Bedford Falls.  Well, that was a long time ago and boy, have banks changed! They have detached themselves from their communities and, instead, attached themselves to their shareholders. Which is why George Baily would applaud the partnership between TD Bank and the Community Reinvestment Act.

We at Almond FinTech applaud the strengthening and engagement of financial institutions with the Community Reinvestment Act (CRA). It’s the moral and societal obligation to encourage banks and savings associations to help meet the credit needs of all segments of their communities, including low- and moderate-income neighborhoods and individuals. The CRA expects that banks will serve the needs of their local communities. It’s the right thing to do.

Enter TD Bank. TD Bank has taken a big leadership position in partnering with the National Community Reinvestment Coalition (NCRC) What is called America’s Most Convenient Bank should also be called America’s Most Compassionate one. 

They have committed to a five-year Community Benefits Plan (CBP), developed in coordination with the NCRC to provide an estimated $50 billion to impact to local communities across TD Bank’s expanded U.S. presence following the approval and close of its planned acquisition of First Horizon Corporation. Pretty heady stuff. 

“Banks have an important role in providing economic opportunity and supporting changes that help Low- and Moderate-Income, diverse and underserved communities achieve their financial goals,” said Leo Salom, President and CEO of TD Bank. 

And so, fueled by that ethos, TD Bank, in coordination with the National Community Reinvestment Coalition, will be opening 25 new stores in minority communities, will be lending approximately $21 billion in home loans for low and moderate borrowers, and over $7 billion for small businesses. 

“TD Bank’s brought dedication and open minds to the meetings with NCRC members that brought us to this strong and promising agreement,” National Community Reinvestment Coalition President and CEO Jesse Van Tol said. 

This shared commitment will positively impact local markets and diverse communities, including Black, Indigenous, minority, women, veteran and LGBTQ2+ individuals and their businesses.  This plan will include banking access, mortgage lending, consumer products,  small business support, and community development loans and investment.

This is a comprehensive program and comes from one of the 10 largest banks in the U.S.  It serves over 9.8 million customers with a full range of retail, small business and commercial banking products at more than 1,100 convenient locations. 

It is partnering its strength with that of the CRA to do what all banks should to create social stability: giving back to the community they do business in. It’s only fair. When it comes to the vibrancy of community, it takes a bank willing to step up, and TD Bank did just that.  George Baily would approve.

Howard Davidson is the CMO at AlmondFinTech.

Almond FinTech is a blockchain-based funds transfer network connecting financial institutions globally. Almond’s infrastructure is built for speed, security, and accessibility, enabling users worldwide to send money across borders using their existing financial institutions. Additionally, Almond uses a combination of psychometric and financial data to provide fast, low-risk, ethical loans to communities with unconventional or limited credit histories.