22 Oct First Nations Bank of Canada

Overview of First Nations Bank of Canada 

Established in 1996, First Nations Bank of Canada (FNBC) is the only Indigenous-owned Schedule 1 bank in the country. With a strong focus on providing financial services tailored to Indigenous communities, FNBC has grown to serve approximately 15,000 retail customers. The bank offers a range of services, including retail banking, commercial banking, and trust management for Indigenous nations and their economic development corporations. 

Bill Lomax, who leads FNBC, emphasizes the bank’s unique position in the financial sector. “We’re part of the financial aspect of nation-building,” he explains. The bank doesn’t just offer generic services; instead, it works closely with Indigenous communities to understand and meet their specific needs. FNBC prides itself on tailoring solutions to the priorities of the nations it serves, which distinguishes it from larger commercial banks. 

Key Areas of Focus 

FNBC’s biggest line of business is financing commercial real estate, which accounts for 20-25% of the loans it issues. In addition, the bank has diversified its portfolio, supporting projects in various sectors such as forestry, community development, and more. One notable example mentioned by Lomax is the bank’s financing of a community arena for a First Nations community that had been without one for over 25 years. 

Beyond financing, FNBC also plays a crucial role in helping Indigenous communities manage their financial assets. It works closely with First Nations on trust management, supporting communities as they manage settlements and other financial resources in a sustainable way. 

Mission and Vision 

FNBC has a clear vision: to become the largest provider of financial services to Indigenous communities in Canada. The bank’s mission is driven not only by profit but also by a strong social mandate. Over 90% of the loans issued by FNBC go directly to Indigenous communities, and over 87% of the bank’s shareholders are Indigenous. This structure allows FNBC to ensure that the profits made from their operations return to the communities they serve. 

FNBC success isn’t solely defined by profitability. Instead, it’s about the positive impact they can make on Indigenous communities. Whether it’s creating new jobs, enabling economic growth, or building essential community infrastructure, FNBC’s work is centered around enhancing the lives of Indigenous peoples across Canada. As Lomax puts it, “Success for us is really helping communities with projects that are going to impact their community members, whether through new jobs or community services.” 

Challenges and Opportunities in Indigenous Economic Reconciliation 

One of the most significant challenges FNBC faces is the lack of human capacity in the Indigenous financial sector. According to Lomax, while more young Indigenous people are entering fields like finance, banking, and accounting, the numbers are still low. FNBC is working to bridge this gap by recruiting and training young leaders in these areas. Even if these individuals don’t remain with FNBC for their entire careers, the bank sees it as a win if they take their skills and apply them to benefit their communities. 

Lomax is hopeful about the future. He notes that the sophistication of the projects undertaken by Indigenous nations is increasing, with many communities becoming more involved in areas like commercial real estate and corporate acquisitions. Nations are taking steps to “indigenize” businesses and make strategic investments that will benefit them for generations to come. 

In recent years, FNBC has also supported communities as they navigate large settlement agreements. Lomax cites the Robinson Huron settlement as an example of a “game-changing” agreement that, if managed properly, can create lasting impacts for the Nations. FNBC works closely with nations to ensure that these settlements are used in ways that benefit not only the current generation but future generations as well. 

Leadership and Partnerships 

When it comes to leadership, Lomax believes it’s about making the tough decisions that benefit communities in the long term. “Leadership is helping people do the things that are good for them, not necessarily what they want to do,” he says. This philosophy extends to FNBC’s approach to partnerships, where transparency and open communication are key. 

FNBC has built solid partnerships with Indigenous nations by being clear about its goals and understanding the needs of the communities it serves. These partnerships, rooted in mutual respect and trust, have allowed FNBC to grow and make a meaningful difference in the lives of Indigenous Peoples. 

The Future of the Indigenous Economy 

Looking ahead, FNBC sees significant growth opportunities in the Indigenous economy. As Indigenous nations continue to develop their economic capacities, FNBC is poised to play a critical role in supporting their financial success. From managing settlements to helping nations invest in profitable ventures, FNBC is committed to empowering Indigenous communities and contributing to their long-term economic development. 

The bank’s unique combination of mission-driven work and profitability allows it to balance social impact with financial sustainability. As Lomax concludes, “You can have mission-driven organizations that aren’t profitable, but they won’t be sustainable. Our goal is to make a reasonable profit, but only in ways that are sustainable for our counterparts.” 

Learn more at: First Nations Bank of Canada