Bank modernizes lending practice

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Ten years ago, the policy at the Royal Bank, Canada's largest bank, was "Don't lend money to Indians."

Today the Royal Bank is working in partnership with Aboriginal people. It is wooing their business and actively seeking and training Native people across Canada to become bankers.

On June 3 and 4, the bank held its eighth National Aboriginal Banking conference in Duncan at the Quw'utsun' Friendship and Conference Centre. Keith MacDonald, national manager for Aboriginal banking, explained that the purpose of the session was to better understand how the bank could help Aboriginal people to be the best they can be.

Graham MacLachlan, the bank's senior vice president, said, "We believe in identifying opportunities in the market and then specializing our focus against that. We believe that when you specialize, you understand, and then we're going to be better positioned to come up with the right kind of solutions that will benefit both the customers and the bank."

If the Royal Bank is going to be successful in Aboriginal banking it has to understand the culture, MacLachlan said. It also has to understand where Native people's cash flow comes from. It has to take different kinds of pledges for loan security.

But the bank's role has to go further, he added. There were about 50 top managers at the conference and only 10 per cent were Native. That number has to increase, he said.

Gail Murray, a Metis who is regional manager of Aboriginal banking in British Columbia, addressed the group about the protocol bankers have to follow when dealing with First Nations people. Murray stressed that understanding the language is important, respect is important, and that bringing gifts is a sign of respect. Murray also said that bringing more Native people into the bank is key.

"We have to put forth a concerted effort in our workforce of succession planning. By the year 2010, 50 per cent of the workforce is going to be Aboriginal."

The Royal Bank has begun several initiatives to address change. It grants an annual Aboriginal scholarship. It also opens 19 work/study positions in the bank each year where young people receive on-the-job training in all aspects of banking while completing high school.

Aboriginal banking sounds like a separate branch of the Royal Bank but that isn't the case, Murray said. Aboriginal banking is part of the corporate mainstream, but at the same time bank staff who are passionate about working with the Native population take on Aboriginal banking as a specialty.

"I came to the bank because I wanted to be able to provide capital to the communities," Murray said.

"I want to make a difference in the community. I'm very passionate about that. I'm here because I'm Aboriginal and because I don't think the status quo is good enough. As the largest bank in Canada we have a responsibility to make a very large contribution.

Banking cannot be separated from social issues Murray said. Many First Nations people are living in poverty because they have had no access to loans. They have not had access to money for housing and infrastructure. The bank is in a position to help, she said.

Andrew McConnell, an Ojibway who is the bank's regional vice president in the "Golden Horseshoe" region of southern Ontario, vowed last year to make a difference. He set himself the goal of financing 1,000 new homes on reserves. He built 1,054-more than all the other financial institutions in Canada combined.

McConnell, a former pro football player with the Cincinnati Bengals and the Edmonton Eskimos, said he chose a career in banking because he believes in what the Royal Bank is doing and he wants to help his people. The transition from being a pro athlete to banking was not all that remarkable, McConnell said.

"We have to build and leverage the language of partnership, he said.

As Canadians, McConnell added, we all have a stake in the challenges and problems that face Aboriginal people today.