Wainwright targets market
Most people choose their bank for a few predictable reasons, such as convenience, reputation or the occasional promotional offer. Others just want a bank that won't charge a fortune when they make a few extra ATM withdrawals.
But Boston-based Wainwright Bank & Trust Co. is
banking on building its business with a different hook
- socially responsible banking. In particular, Wainwright
is establishing itself by linking up with gay and lesbian
customers and causes.
The bank's newest branch, located at 155 Dartmouth Street, where the Back Bay meets the South End, opens its doors this week to a neighborhood that has clamored for its gay and lesbian-friendly banking services. Dartmouth Street is the fourth neighborhood branch of the state's 10th largest bank which is already operates offices at Downtown Crossing, Kendall Square, Harvard Square and Fresh Pond Mall in Cambridge.
Founded as a private bank for wealthy investors in 1987, Wainwright was one of few young startups to survive the late 80's rash of bank failures. Its co-founders, Chairman Robert Glassman and President John Plukas, quickly picked up the nickname "the Ben & Jerry of banking" when they abandoned their original mission and devoted themselves to linking progressive causes they believed in the world of high finance. "Socially responsible banking" became their battle cry.
"Wainwright has always had an internal culture that was very supportive of gays and lesbians." said Steven Young, Wainwright's vice president of retail banking. Indeed, the bank spent two years lobbying its insurance company to secure health benefits for employees with same-sex domestic partners.
In 1994, when Wainwright appointed Brenda Cole to its board of directors, she became the only openly lesbian serving on the board of publicly traded company. "When Ms. Cole joined the board, we increased our attempts to address the needs of our gay and lesbian customers." said Young.
Wainwright's gay customers are particularly interested in financial services such as mortgages and joint accounts for same-sex couples Young added. While banks are prohibited by law from discriminating against gay and lesbians, many still feel victimized by bias and insensitivity at many conventional banks. "People get sick of dealing with awkward questions or disbelief about their lifestyle," he explained.
Wainwright's other financial services fueled by progressive
politics include the Community Card MasterCard, a credit
card with a 16.9 percent APR that donates 1 percent
of purchases to organizations promoting gay and lesbian
equity such as the AIDS Action Committee of Massachusetts,
Boston Gay Mens Chorus, Fenway Community Health Center,
Parents & Friends of Lesbians and Gays (PFLAG),
Gay & Lesbian Advocates and Defenders (GLAD) among
others.
The concept of the affinity card, a "reverse Discover card" of sorts, which sends a small percent of its total to a charitable organization rather than back to the cardholder is quite popular. The Boston-area beneficiaries of the Wainwright card expect the proceeds to be significant, said Peter Erbland, manager of communications for Massachusetts AIDS Action.
"The card was only introduced last year so we haven't seen any large sums so far," said Erbland, "But I expect it to increase as more people learn about the card."
Wainwright also offers a one-year Community CD, which channels deposits into community development projects such as Rosies Place, the Pine Street Inn and the Dimmock Community Health Center. In the past two years, the bank has become the single largest provider of AIDS housing in Boston.
While the Community Reinvestment Act requires all banks to serve the needs of their community. Wainwright claims to devote more than 15 percent of its loan portfolio to finance low-income housing; far more than required.
Despite its aggressive social agenda, Wainwright is unwilling to generalize about the motivations of its clientele. "Many of our customers are not gay. We serve a wide variety of people who come to us for all different reasons. Most of them just like our attitude." Young said.
As the financial world becomes increasingly competitive, banks are likely to continue finding ways to transform the deposits of average consumers into tools of economic power.
Openly advancing a social and political agenda may no longer be a banking experiment, but the norm. Young added, "I think the future banking trends will focus on communities, with groups such as Latinos, Asians and women working together for common goals."
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