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Two African American business have created a new strategic alliance to grow business

BUNNIE photo Vivian Spee Two African American business have created a new strategic alliance to grow business

Dr. C.T. Vivian, and James Speed, and George Andrews

Two African American business have created a new strategic alliance to grow business

Minority-owned businesses join forces to increase profit and make comprehensive financial services available — a program scalable for other minority financial institutions

 By Bunnie Jackson-Ransom

       ATLANTA, GA. — Capitol City Bank & Trust Company in Atlanta, GA, and North Carolina Mutual Life Insurance Company in Durham, NC, two African-American businesses well known throughout the USA, have come together to grow their businesses and provide greater financial opportunities for their customers.  The   ultimate goals for this milestone relationship however, rests with the opportunities created for similar minority financial institutions to do likewise and to spread this alliance beyond these respective cities and states, for the benefit of other minority financial institutions across this country.

       North Carolina Mutual Life Insurance Company (NCM) is the oldest and one of the most successful African American insurance companies in the United States; and Capitol City Bank & Trust Company (CCB) is a new progressive African American financial institution that sells financial services.  The coming together of these two minority businesses has the potential to produce a conglomerate of minority businesses that can provides a mix of insurance and financial services under one brand.  This strategic alliance enables CCB and NCM the opportunity to pursue major contracts with municipalities and major corporations; and provides the ability to offer customers any and all types of financial products and services.

       “Georgia is one of the states that leads the nation in banking failures. There are approximately 84 banks in GA that closed and many others are struggling.  Capitol City Bank is surviving through the creative initiatives coming from within such as this alliance we have with North Carolina Mutual. Capitol City did not get any of the $770 billion dollars made available to banks by the federal government’s TARP (Trouble Asset Relief Program); however, with the assistance of North Carolina Mutual, we have put together our own TARP,” said George Andrews, President and CEO of Capitol City Bank & Trust Company.

       The partnership with CCB will allow North Carolina Mutual Life Insurance Company to increase its distribution in markets where they have historically done business.  In addition to distribution, this partnership provides an opportunity for CCB to receive fee income and provide products to community partners, municipalities and corporations in its sphere of influence.  These fees and products will come through alliances NC Mutual has with various carriers and independent marketing organizations. 

“We anticipate this model is scalable and plan to duplicate it in other minority banks and community financial institutions throughout the country. Our new venture with CCB will contribute to our efforts in providing financial literacy information to communities across the southeast.  As we celebrate 115 years this year we are humbled to begin this new chapter with CCB as a joint partner. We are confident that other alliances will follow suit,” said James Speed, President and CEO, “North Carolina Mutual Life Insurance Company.

       While these two African-American owned institutions have joined forces in a partnership (not a merger) to become a competitive force to capture major group insurance opportunities with corporate America and municipalities, it is important to note that other minority owned banks (African American) are located throughout the United States [New York,  Pennsylvania, Tennessee, the District of Columbia, Illinois, California, Louisiana, New Jersey, Maryland, Massachusetts, Alabama, Missouri, Florida, Michigan, Virginia, Georgia, and North Carolina] .

       These business arrangements have been in discussions since early 2012 and will become operative immediately providing Capitol City Bank with the opportunity to offer insurance programs to municipalities, corporations and individuals which are already among its customer base.  “The partnership allows both companies to be more competitive.” says Andrews “We will offer an array of new and varied insurance products to our constituents here in Georgia that should increase profit for both companies.  We will be able to get into doors that have been previously closed to us.”

       George Andrews has built a solid professional career in Atlanta and the State of Georgia as a People’s Banker.  “We made our mark in the communities that we serve through our practices to engage the communities through innovative ideas to provide service and our ability to involve grass-roots leadership, churches and various start-up businesses.  We have created other partnerships that support our loan programs with Sun Trust Bank and Wells Fargo Bank,” said Andrews. 

         North Carolina Mutual Life Insurance Company has made a substantial financial investment in Capitol City Bank.  According to James Speed, President and CEO, “North Carolina Mutual is pleased to enter this historic partnership with Capitol City Bank & Trust Company.  We pride ourselves on finding the best solutions to meet the unique needs of our community;  and this strategic alliance allows both companies the opportunity to efficiently provide best in class insurance products and services to CCB’s customer base and beyond in a cost effective manner,”  Speed added.

 

 

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    Carma Lynn Henry Westside Gazette Newspaper 545 N.W. 7th Terrace, Fort Lauderdale, Florida 33311 Office: (954) 525-1489 Fax: (954) 525-1861

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