One of the largest software companies in the world has joined with one of the largest banks in the world as investor anchors in an initiative to support minority and low-income financial institutions, an effort sponsored by the federal insurer of bank deposits, the agency announced Thursday.
Microsoft, Inc., the software developer, and Truist Financial Corp. – the 63rd-largest bank in the world, and the sixth-largest U.S. bank – were named leaders of the investment fund called the “Mission-Driven Bank Fund,” launched by the Federal Deposit Insurance Corp. (FDIC).
In addition, the FDIC announced, Discovery, Inc. – a U.S. multinational mass media factual television company – was a founding investor in the fund.
The three groups’ investment, the agency said, would total $120 million. More investments are expected, the FDIC said.
In a press release, the FDIC said it designed the framework of the Mission-Driven Bank Fund to channel private capital and other resources to minority depository institutions (MDIs) and community development financial institutions (CDFIs). “MDIs and CDFIs are banks, savings banks, and savings associations that provide critically needed capital and financial services to minority, lower income, and rural communities,” the FDIC said.
In channeling funds to MDIs and CDFIs, FDIC said it hoped the fund would provide to low- and moderate-income, minority, and rural communities affordable financial products and services to individuals and businesses; economic and community development stimulation; and construction of opportunity and prosperity.