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CapNexus Connects CDFI Credit Unions & Banks Through BEA Deposit Matching

Success Story
Event DateJuly 9th, 2020
Interest Areas
Impact Investing

For the past four years, CapNexus has facilitated connections through the Bank Enterprise Awards (BEA) Deposit Matching Campaign that benefits Community Development Financial Institution (CDFI) banks and credit unions. In 2016, the Community Development Bankers Association (CBDA), the trade association for community development banks, and Inclusiv, the trade association for CDFI credit unions, began working together to play matchmaker between CDFI banks participating in the BEA Program and CDFI credit unions. Using the online CapNexus platform, CDFI banks are able to find CDFI credit unions seeking deposits.

The BEA Program provides incentives for banks to lend to and provide services in communities with high poverty (30%+) and high unemployment (at least 1.5 times the national unemployment rate) as well as to support CDFIs lending in these areas.

In 2019, eleven CDFI credit unions posted opportunities on CapNexus as a part of the Deposit Matching Campaign seeking deposits from CDFI banks. These postings resulted in nine credit unions receiving 25 deposits valued at over $7 million.

Many of the credit unions described the process as “easy,” “quick,” and “smooth,” as they were able to find partners and make valuable connections. Mary Bruce Alford, Vice President of Investor Relations at Hope Federal Credit Union (a CapNexus sponsor) shared that “it was a helpful platform! Great to help us get the word out.”

Alliance Credit Union received 21-24 deposits over the past three years of which several were a direct result from their CapNexus posting. Frank Evans, Vice President of Human Resources, stated that their “loan-to-deposit ratio is well over 100%, so that means every deposit is immediately put back onto the street to strengthen [their] communities.”

CapNexus helps make the process easy by providing a platform to connect deals to capital, capital to deals, and even deposit matching in one location. Our 800+ registered users and approximately 1,400 readers of the CapNexus newsletter includes investors, CDFI loan funds, banks and credit unions as well as other community development practitioners, who receive personal notifications when these opportunities are posted on the site.

To learn more about CapNexus or to post an opportunity, email Carla Mannings at  manningsc@pcgloanfund.org