Message from David

Thank you for your part in all that Sunrise Banks celebrates about 2022.

We continued to offer products and services that empower financial wellness in our local community while expanding our reach nationally through fintech partnerships. And while our brand has grown more than tenfold since we started working in the Twin Cities, our core commitment remains the same: Ensure everyone has a fair shake in the financial industry.

In 2022, we expanded our Pathway2Home℠ Mortgage Program, which allows New Americans without a Social Security number to attain homeownership; served hundreds of thousands of people through innovative financial technology products; and began offering Commercial Property Assessed Clean Energy—referred to as “C-PACE”—loans to businesses looking to implement energy-efficient upgrades. That’s in addition to the almost 750 bank accounts we opened for low-income community members in partnership with the local nonprofit Prepare + Prosper.

In our first step in reaching net-zero emissions by 2050, we shared our debut Partnerships for Carbon Accounting Financials Report, which outlines the bank’s operational and financed carbon emissions.

I’m beyond proud of all we’ve accomplished together at Sunrise. You should be, too. Your support helped improve our community, provide access to financial services for people typically left out by traditional banks and address climate change.

From all of us at Sunrise Banks: Thank you.

Sincerely,

Meet Our 2022 Sunny Award Winner

Cindy works the front desk at Sunrise Banks’ headquarters and greets everyone with a smile. Her favorite thing about working at Sunrise? The people. “Everyone is super nice, and I’ve never gotten turned away asking a question.”

Here’s how one employee described Cindy:

Thanks for all you do, Cindy, and congratulations!

I Belong Here

Despite English being his primary language, in elementary school, Hemant was placed in what was then called ESL (English as a Second Language) classes, now ELL (English Language Learner).

“I never knew why I was placed in ESL at such a young age. Maybe it was because I always said ‘Po-kay-man’ instead of ‘Po-kay-mawn’ because that’s how the word ‘man’ was pronounced in English. The word ‘Pokemon’ itself wasn’t even English,” recalls Hemant.

“It was like this for my entire life. Always second-guessed if I was correct or not. Always wondering if I fit in or not.”

But Hemant did not let those thoughts consume him. Though he already knew English and was finding ways to fit into American culture, he stayed deeply connected to his new home in Richfield, Minnesota, and his roots in Guyana.

Read the rest of Hemant’s and other employees’ stories here.

Unfortunately, too many — one in four people nationally, according to the Federal Deposit Insurance Corporation (FDIC) —live outside the financial mainstream because they cannot afford bank accounts or do not trust banks. When you break it down by race, it is one in five white households compared to an alarming almost one out of every two African American households.

Just over seven million households are considered “unbanked.”

In Minnesota, nearly 40% of all households of color are unbanked or underbanked compared to one in ten white households, a disparity that, over the course of a financial lifetime, can cost someone without a bank account nearly $40,000 in fees.

African American, Hispanic, indigenous and/or customers of color who are banked are often charged higher minimum balances and higher fees to maintain basic bank accounts. For example, the average combination of costs and fees for a basic, entry-level checking account is $190.09 higher for African American customers and $262.09 higher for Hispanic customers than it is for white customers.

Prepare + Prosper offers FAIR Banking, short for Financial Access in Reach, to help un- and under-banked individuals obtain affordable checking and savings accounts that provide, in addition to no overdraft fees, more transparency, trust, inclusion, access and partnership.

Prepare + Prosper Programs and Strategy Director Claudia Holt said expensive accounts and reports from ChexSystems, which reports unpaid fees and overdrafts, are barriers for clients.

“Overdraft and other fees can add up quickly and once the damage is done it can be hard for people to recover,” said Holt. “And FAIR says everyone deserves access to safe and affordable banking options.”

Holt added that FAIR does not require monthly minimum balances, another barrier to maintaining a bank account.

Shaquonna Jackson began her journey with Prepare + Prosper as a customer, utilizing the nonprofit’s free tax preparation services and eventually signing up for FAIR. Jackson became part of Prepare + Prospers’ Community Ambassador pilot program. FAIR hired four current FAIR customers to promote the program in their communities and networks, including offering FAIR enrollment at several local libraries.

Before joining FAIR, Jackson grappled with maintaining her bank account at a large financial institution.

“They were no longer willing to bank with me because I got behind on fees,” Jackson said.

She added that the mistrust of financial systems could dissuade people from opening an account. However, she said her positive experience with FAIR is a helpful recruiting tool.

“I think the number one issue is trust, you know. A lot of folks have not had good experiences with past banking, so they’re like, ‘Why should I try FAIR?’ But once I give them my story, because I’m speaking from experience, that carries more levels to it,” she said.

Prepare + Prosper also offers Money Mentors, a free financial coaching program that works with customers longer-term to help them reach a financial goal as well as free tax preparation throughout the Twin Cities. Find more information on Prepare + Prosper and their free tax preparation here.

The report outlined the bank’s financed and operational emissions. It uses the PCAF global standard, which provides its members with the industry-standard methodology to measure the Greenhouse Gas (GHG) emissions related to their lending activities.

Working with PCAF helps financial institutions set science-based targets and align their portfolios with the Paris Climate Agreement. PCAF consists of more than 350 financial institutions with $87 trillion in total assets from all over the world.

Sunrise committed to tracking its carbon emissions in 2019 as part of the Global Alliance for Banking on Value’s 3C Initiative, also known as the “Climate Change Commitment.” Read the report here.

Sunrise Banks donated to One Tree Planted, a nonprofit focused on global reforestation, to purchase 30,000 total trees in 2020 and 2021 to help reforestation in the Chippewa National Forest of Minnesota to help offset carbon emissions from the bank’s corporate air travel.

In 2022 Sunrise donated $15,000 towards the restoration of 50+ watersheds in Oregon, California, Washington and British Columbia, and purchased 15,000 trees to help restore habitats for endangered orcas. Trees help with water quality and therefore improve the health and quantity of salmon for the orca to eat.

McKnight-Ahad is the CEO and founder of Black Women’s Wealth Alliance (BWWA), an organization she describes as a culturally specific agency that creates a pathway for Black women to become successful and build generational wealth.

BWWA provides wealth education services, business technical support, professional development and financial assistance to local business owners. Since 2014, BWWA has served more than 4,000 Black women, provided more than $1.3 million in small capacity grants and facilitated $780,000 in lending.

Learn more about BWWA here.

Maybe you were taught how to balance a checkbook or the basics of budgeting. But amidst the core curriculum of math, science, reading and writing – think Bunsen burner science projects, confusing algebraic equations and book reports on Huck Finn – there was likely little time dedicated to financial literacy.

As of 2018, there were only 17 states that mandated high school students to complete a course in personal finance. And 50% of high school seniors say they wish they had learned more about personal finance in high school.

But the lack of money management classes in no way diminishes their importance – studies have shown that financially literate students are more likely to experience financial stability and overall wellness.

Banzai is attempting to close the financial literacy gap – and it’s off to a great start. So far, the organization provides online lessons in personal finance to more than 100,000 K-12 teachers across the country. The lessons cover everything from saving and budgeting to setting financial goals.

The courses are offered to elementary, middle and high school students.

“There are so many things to learn about financial literacy. And I don’t think it’s always taught in schools,” said Banzai Public Relations Specialist Elisabeth Fitts. “Our program is trying to bridge that gap.”

Banzai started 15 years ago when its founders, based in Provo, Utah, decided that students needed to learn about financial pitfalls and how to avoid them early on.

Banzai features courses and articles with colorful comic book-like illustrations with real-life scenarios for youngsters: you want to buy a bike and need to start saving; you’re starting a lemonade stand and are looking to make a profit.

But the courses also touch on more complex issues like investing, compound interest and retirement savings.

Fitts said teachers welcome the courses as no grading is required – Banzai software automatically grades the courses – and because they supplement the already established curriculum. Teachers can decide how and when to implement the courses.

“Banzai allows students to experience real financial pitfalls through the course without taking on real risks,” said Fitts.

Banzai also offers courses on digital citizenship, which cover internet safety and cyberbullying.

“We feel that there are many areas that influence a student’s ability to be prepared for adult life, especially with the rise of the internet,” said Fitts. “Because of COVID and the increase in remote learning, we saw a need for courses on internet safety.”

Sunrise Banks is a Banzai sponsor and has helped to provide courses to 24 schools in Hennepin and Ramsey County.

“I learned that it can be hard to gauge how much to put in which budget if you don’t know what is coming up. I also learned that as long as you have enough money to pay it off, a credit card is a good option,” said one student who’s gone through Banzai courses.

Banzai has more than 800 sponsors across the country. Find out how to become a sponsor here. For more information, visit Banzai’s website.