CSR Program Proposal for Columbia Bank

1238 WordsJun 17, 20185 Pages
MEMORANDUM Subject: CSR Program Proposal for Columbia Bank This memorandum proposes a corporate social responsibility program for Columbia Bank with a focus on student loan debt in our community. This CSR program could be implemented in addition to the community and customer events currently arranged on the branch level. Columbia Bank, and the local communities we serve, would greatly benefit from offering a CSR program that focuses on educating high school students, college students, parents and any potential borrower on the long-term implications of excessive student loan debt. Student Loan Debt and Our Community The first sentence of our mission statement reads, “We will increase shareholder value and enrich the communities we…show more content…
Mortgages Second, Columbia Bank could potentially issue more home mortgages to individuals with little to no student loan debt. A Consumer Financial Protection Bureau report (2013) states, “According to the National Association of Realtors, Americans between the ages of 25 and 34 made up 27 percent of all homebuyers in 2011, the lowest share in the past decade. That percentage represents a 25 percent decline year-over-year from 2010 (para. 8).” This decline is negatively correlated with the increase in student loan debt among that age group. Car Loans According to Brown and Caldwell (2013), 25-year-olds who have student loan debt are now dramatically less likely to incur automobile debt compared to those without student loan debt. Historically, individuals with student loan debt had three to four percent more automobile debt than those without student loan debt (para. 9). This is impacting the number of applicants who may otherwise be interested in our automobile loans services. Small Business Loans Small business loans are an opportunity area for Columbia Bank as well. Aspiring young entrepreneurs can be rejected for these types of loans due to a large debt to income ratio or low credit scores. According to the Consumer Financial Protection Bureau (2013), “The Small Business Administration’s Startup America initiative advises young entrepreneurs to lower their student loan payments by taking advantage of an

More about CSR Program Proposal for Columbia Bank

Open Document