Planet Money: How to Start a Bank
Released March 7, 2025 | Host: NPR's Erica Barras and Sally Helm
Introduction: The Rarity of Starting a Bank Today
In this compelling episode of Planet Money, hosts Erica Barras and Sally Helm delve into the intricate and challenging process of launching a new bank in modern America. They spotlight Fortuna, a community bank in Columbus, Ohio, founded by two enterprising women aiming to support female entrepreneurs—a venture that is both ambitious and uncommon in today’s banking landscape.
From Idea to Reality: The Birth of Fortuna
The journey begins with Lisa Berger, an entrepreneur from Columbus, who, driven by a passion to create a legacy project, decides to start a women-owned bank. Despite having successfully run a title company, Lisa seeks a more impactful venture. Recognizing the scarcity of women-owned banks—only about 20 out of more than 4,000 in the country—she partners with Hilaria Rawlins, a seasoned banking professional with three decades of experience.
Sally Helm [05:05]: “Lisa is an entrepreneur at heart.”
Hilaria Rawlins [07:12]: “We’re truly building a bank. Not many banks start every year.”
Together, they aim to fill a critical gap: providing personalized support and financing to female entrepreneurs who often face more significant challenges in securing loans.
The Importance of Community Banks
The episode underscores the vital role community banks play in supporting small businesses, especially those that may not meet the stringent criteria of larger institutions. Unlike big banks like Chase or Bank of America, which manage trillions in assets and utilize automated loan approval systems, community banks like Fortuna foster personal relationships with their clients, understanding their unique business needs.
Erica Barras [09:32]: “These smaller community banks are actually really important for small businesses.”
Navigating Regulatory Waters
Starting a bank is notoriously complex, primarily due to stringent regulations designed to ensure the safety and stability of the financial system. Fortuna’s founders must navigate a labyrinth of state and federal requirements, including securing a charter from the Ohio Department of Commerce and obtaining deposit insurance from the Federal Deposit Insurance Corporation (FDIC).
Hilaria Rawlins [13:51]: “Banks are such an important part of the infrastructure of the economy.”
The hosts speak with Kate Judge, a Columbia Law School professor and banking expert, who explains that post-2008 financial crisis, the number of new banks has plummeted due to increased regulatory burdens and the rise of Fintech competitors.
Kate Judge [11:11]: “Banking will be healthier if there's more competition, more new ideas.”
Securing Capital: The Lifeblood of a New Bank
One of the most significant hurdles Fortuna faces is raising the necessary capital. Banks are required to have substantial initial investments to cover potential loan defaults and ensure financial stability. Lisa and Hilaria embark on a rigorous fundraising campaign, seeking $20 million from investors who must believe in Fortuna's mission despite the prevailing skepticism following major bank failures like Silicon Valley Bank (SVB).
Hilaria Rawlins [19:36]: “Now the banking industry is a bad industry to invest in.”
The duo emphasizes building trust with investors by presenting Fortuna as a stable and mission-driven institution, rather than a high-risk tech startup.
The Impact of SVB’s Collapse on Fortuna
The sudden collapse of SVB in March 2023 sends ripples through the banking community, heightening fears and making fundraising even more challenging for Fortuna. The incident shakes the public’s confidence in new banks, compelling Fortuna to reinforce its value proposition and differentiate itself through a clear focus on supporting female entrepreneurs.
Erica Barras [18:22]: “For the first time in years, people are hearing the words bank failure.”
Despite these setbacks, Fortuna perseveres, leveraging the trust and support of local investors who resonate with their mission.
Overcoming Technical and Operational Challenges
As Fortuna inches closer to opening, it encounters technical glitches, such as initial discrepancies between online banking records and physical deposits. These issues highlight the complexities of integrating robust digital systems with traditional banking operations. Through diligent troubleshooting, Fortuna resolves these problems, ensuring a seamless experience for future customers.
Ashley Dick [25:06]: “But when they looked for it on the computer systems, it somehow hadn't been recorded.”
Grand Opening: A Milestone Achieved
In January 2025, after years of planning, fundraising, and regulatory compliance, Fortuna officially opens its doors. The grand opening ceremony is marked by heartfelt speeches from Hilaria and Lisa, the successful installation of their vault, and the symbolic ribbon-cutting performed flawlessly on the first attempt.
Hilaria Rawlins [26:47]: “Ready.”
The event symbolizes not just the launch of a new bank, but the realization of a vision to empower female entrepreneurs and diversify the banking industry.
Conclusion: The Future of Community Banking
Fortuna’s successful opening serves as a testament to the enduring importance of community banks in fostering local economies and supporting underrepresented groups. As innovation continues to shape the financial landscape, Fortuna stands as a beacon of personalized banking, demonstrating that with resilience and purpose, new banks can thrive even in challenging times.
Kate Judge [27:09]: “Yeah, why not?”
Planet Money wraps up by celebrating the founders' achievements while hinting at future opportunities for similar ventures to sustain and enrich community banking across the nation.
Produced by: Emma Peasley
Edited by: Kate
Engineer: Katie Mingle
Fact-Checked by: Sierra Juarez
Executive Producer: Alex Goldmark
Special Thanks to: Jim Stevens
For more insights and sponsor-free episodes, subscribe to Planet Money+.