An Interview with Steve Young, Wainwright Bank & Trust Company

The Deluxe Knowledge Quarterly

February 15, 2007

“You can be profitable, you can be publicly traded, and you can make money for shareholders at the same time you are allocating capital to underserved communities.”

“With a sense of inclusion that extends from the boardroom to the mailroom…” So begins the mission statement of Wainwright Bank & Trust Company, a national leader in socially progressive banking. Since 1992, Wainwright has provided $570 million in loans to services for progressive causes, including women’s rights, homelessness, affordable housing, environmental protection, and gay and lesbian issues. Having such a well-defined niche in the financial services industry provides Wainwright Bank with both new opportunities and challenges when it comes to attracting new customers, as Senior Vice President for Consumer Banking Steve Young discusses.

Q: Where did the idea come from to create a socially progressive bank?
A: Co-founder and co-chairman of the bank Bob Glassman was the visionary behind the bank’s social agenda. He wanted to create a new model for the banking industry. His goal was to demonstrate that you can be profitable, you can be publicly traded, and you can make money for shareholders at the same time you are allocating capital to underserved communities. Bob was a philanthropist before he founded the bank, and he wanted to integrate his personal interest in issues of social justice, human rights, and civil liberties into the workplace.

Q: Is there a difference between the way you market to new customers and the way traditional banks market?
A: It can be difficult to distinguish oneself in this industry. One bank looks like another in the eyes of many consumers. Our social agenda is an identifiable brand, and it has really worked to our advantage.

Our bank isn’t for everyone and there’s a lot of self-selection among potential customers. But our most successful marketing tool has been word of mouth. People will hear about our bank and say to themselves, “You know I’d rather put my money in Wainwright because I know part of it is funding local community development, and I’m supporting a financial institution that uses its voice to champion issues I care about.” Word of mouth is really our most successful marketing tool, and it’s a marketer’s dream because once you’ve educated people about who you are, they go out and tell your story for you.

Q: What can people expect when they become a customer of your bank?
A: We offer the same products and services as all banks: online banking and bill pay, credit cards, debit cards, mortgages, etc. There are two major differences. Our front-line people, predominantly in the branches, are excited and enthusiastic about what they’re doing. Customers come in from all walks of life and interact with people who convey a passion about their jobs. So our people make a huge difference. Second, our branch offices are very unique. Our first ever cyber café branch opened in 2001 and was mentioned in Time magazine. It has Internet kiosks anyone can use to check e-mail, surf, whatever they want to do, and there’s soft seating, a free-standing fireplace, café tables, free coffee and donuts, a TV, newspapers. It’s been very successful.

Q: Are more traditional bankers skeptical?
A: At first. Then I tell them that we’ve provided over $570 million in loan commitments to local socially responsible community development, and we have not lost a penny on that portion of our portfolio. A zero percent default rate. We make money for our shareholders, the community benefits, and our customers are loyal because they know their deposits help fund these loans. It’s a win-win-win.

Steve F. Young is a Senior Vice President at Wainwright Bank & Trust Company, a publicly traded commercial bank headquartered in Boston with $800 million in assets. He is the executive manager of Consumer Banking and is responsible for bank-wide marketing and public relations. Since 1992, he has collaborated with Wainwright Bank Co-founder and Co-chairman Robert A. Glassman, in creating the bank’s unique brand.

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