Consumer banking

One way to help the global economy prosper is to think of the poor and the middle class as untapped assets for entrepreneurship and job creation. That was the premise underlying a panel discussion at a recent conference on financial inclusion.The panel included, from left, Clare Woodcraft-Scott, the chief executive of the Emirates Foundation; Monica Mehta, managing principal of Seventh Capital in Houston, a family office that invests in lower-market consumer businesses, and author of "The Entrepreneurial Instinct: How Everyone Has the Innate Ability to Start a Successful Small Business," and Aja Brown, the mayor of Compton, Calif. Their discussion took place in Atlanta at the 2015 Hope Global Forum, presented by Operation Hope.

Aja Brown, the mayor of Compton, Calif., says introducing young people to what's possible, so that they don't feel limited by their current circumstances, is a way of continuing the mission that Martin Luther King Jr. started. Brown was a featured speaker at the recent Hope Global Forum, which focused on the theme of financial inclusion. She was there to discuss several initiatives underway in Compton, including one with the University of Southern California to offer industry-specific employment training.

Banks need outside help to deliver credit to the underserved, says Tim Wennes, the West Coast president of MUFG Union Bank, who shares advice on what kind of partners to seek and how to vet them.

Rallying bank employees to participate in outreach projects takes hard work in the beginning, but their involvement is essential to building a rapport with the community, OneWest Bank CEO Joseph Otting says.

There are some fairly basic, decisive steps banks could take to educate people outside the financial mainstream, and it would make banking more profitable, says John Bryant, the chairman and CEO of the nonprofit Operation Hope.

Dumping entire categories of clients is a crude and inappropriate reaction to large fines, says Stephen Platt, author of Criminal Capital: How the Finance Industry Facilitates Crime." However, he says, regulators should hold a dialogue with banks and attempt to accommodate businesses that carry high risk but whose services are desperately required, such as remittances to war-torn Somalia.

Stephen Platt, a forensic investigations consultant and author of Criminal Capital: How the Finance Industry Facilitates Crime, explains why bank directors' fear of revealing their ignorance is dangerous for financial institutions.