Banking on Social Impact

An inside look at INSIKT’s securitization investment program and partners

As part of its mission to create a culture of financial inclusion and invest capital into our low-income communities, INSIKT recently closed another private social impact bond issuance of $26.4M. This latest placement brings the total to $273M across 16 issuances since the inception of our securitization program in 2013, and comes on the heels of our $25M issuance on June 28. We are very excited about this continued momentum and are pleased to have had a total of 17 investors participate in this round, including four banks.

One of those banks is Amalgamated Bank, a very progressive lending partner we are thrilled to be working with for the first time. Amalgamated’s investment in this most recent issuance along with their name and commitment lends a lot to our program given their longstanding mission to provide affordable access to the banking system and be a champion for the underserved.

What impressed us most about Amalgamated is that they are authentically dedicated to doing the most good for the most people, quite extraordinary in banking today. You’ll see them contributing to causes that advocate for true financial opportunity and social justice, including support for immigrants, affordable housing, and workers’ rights. Their business practices and values align with who we are and what we stand to help hard working people participate fully in the American Dream.

Now that INSIKT is a certified Community Development Financial Institution (CDFI), it is even more advantageous for banks to work with us. By investing in INSIKT securities, financial institutions and foundations can fulfill their CRA (Community Reinvestment Act) and program-related obligations, making it a win-win for our banking partners and the borrowers and communities we are serving.

As we continue to grow our business, the culture of respect, integrity and innovation that we build inside our organization is critical to ensure our sustainability and future success. The same can be said for how we look for business partners who are change makers and disruptors, who also share our values and mission. In this case, we were fortunate to be introduced to Amalgamated CEO, Keith Mestrich, by INSIKT board member, Gene Sperling. Based on our like-minded social impact approach to doing business, he thought we would be a good match.

In Keith’s words, “at Amalgamated, we don’t give lip service to responsible lending – we have a long history of delivering on it. Which is why we align so well with INSIKT. How they structure their securitization program gives us the confidence that our investment will make a meaningful difference in the communities that need it most, while providing a healthy return for our shareholders – which is even more important now that we are a public company.  Our partnership with INSIKT is the ultimate social impact strategy and a truly measurable model for creating sustainable financial inclusion nationwide. We encourage other financial institutions, foundations and private investors to come on board and participate in this effort because a rising tide really can lift all boats.”

Aura Team