Earlier this year, hundreds of Zions Bank employees traded in balance sheets for paint brushes, spending a week beautifying 20 homes and nonprofit facilities throughout Utah and Idaho.
Although painting falls far outside a typical banker’s job description, the annual service project — now in its fourth decade — reflects the broader commitment of the banking industry to the communities it serves. At its core, banking is about investing in people, neighborhoods and the future.
That’s why bankers are actively involved in their communities through community service, financial education, economic development, local partnerships, and so many other ways.
From 2021 to 2023, banks of all sizes invested more than $606 billion in low- and moderate-income communities through mortgages and small-business loans, according to the American Bankers Association. In 2023 alone, they contributed an additional $127 billion in community development loans. These figures underscore the scale of the industry’s commitment to community investment.
Banks also invest in their communities through low-interest loans for revitalization projects and, often, outright donations. Zions Bank alone contributed $7.6 million in donations and community sponsorships in 2024. In addition to philanthropic giving, banks give back through tax revenue that supports essential public services. Over the past 10 years, Zions Bancorporation has paid $115 million in income taxes to the state of Utah. These funds are constitutionally earmarked for public and higher education, strengthening opportunities for students and families across Utah.
Why local reinvestment matters
As trusted financial intermediaries, banks facilitate the movement of money in a community. This allows people to buy homes, start and grow businesses, and safely deposit their money. In short, banks are merely reflections of the communities they serve.
How and where banks reinvest this money is vitally important. Historically, banks were the first businesses in a new town and provided the necessary capital for building homes, businesses and schools. In Utah, for example, Zions Bank provided capital that helped fuel the railroad, power and mining industries in the early 1900s.
Recognizing the important role U.S. banks play in their communities, Congress passed the Community Reinvestment Act — or CRA — in 1977. The CRA directs banks to serve their entire communities, including low- and moderate-income neighborhoods, consistent with safe and sound banking practices. By doing so, they expand access to financial services such as loans and mortgages, which in turn supports individual financial stability and broader community development.
The CRA carries no civil or criminal penalties, but banks that don’t live up to its standards risk being denied applications for federal charters, mergers and acquisitions. Notably, credit unions are not required to meet any community reinvestment requirements.
While the CRA formalized the expectation that banks serve the needs of all parts of their community, it’s in the best interest of banks to do so regardless. After all, a bank is only as healthy as the communities it serves.
When banks provide capital to help small businesses grow and thrive, they help create jobs and fuel their local economies. Every dollar and every hour invested in the community has a multiplier effect — bolstering the tax base and stimulating business growth, which, in turn, flows back to banks and builds in perpetuity. Most importantly, these investments yield intangible short- and long-term returns in the form of healthier, more cohesive communities.
The role of banks in Utah
Utah benefits from a high concentration of commercial and industrial banks, ranked as the fifth-largest banking state in the United States, with more than $1 trillion in collective assets, according to the Utah Bankers Association.
A September 2025 report from the Kem C. Gardner Policy Institute summarized Utah’s community needs that could benefit from the banking industry’s local investments. These needs include strengthening the economy; addressing housing affordability; reducing poverty; supporting small businesses; and enhancing transportation, public facilities, water supply and air quality.
Making meaningful impact in these areas often requires more than a monetary investment. Banks also contribute to community causes in the form of technical assistance, flexible credit policies, and collaborative relationships with community and government partners.
To address the state’s housing crisis, for example, local bankers have worked alongside community leaders, developers and government officials to advance a comprehensive set of solutions through multiple housing funds and initiatives –— including the Utah Housing Preservation Fund, Rocky Mountain Homes Fund and Utah Perpetual Housing Fund. The result? The preservation and creation of hundreds of affordable housing units, saving tenants millions in rent and expanding access to homeownership for working families.
Putting commitment into action
Banks also empower communities through education and partnerships. Industrywide campaigns like #BanksNeverAskThat help consumers spot phishing scams and protect their accounts, while financial literacy programs for children, teens and adults teach budgeting, credit management and fraud prevention. These efforts build long-term financial stability and trust.
Beyond education, banks often collaborate with Community Development Financial Institutions to reach borrowers who might not qualify for traditional loans. By investing in or partnering with CDFIs, banks extend credit to small businesses and underserved households, fueling entrepreneurship and economic growth in areas that need it most.
Whether it’s helping a family buy their first home, supporting a local entrepreneur, or expanding access to housing and education, banks are uniquely positioned to make a lasting impact. Businesses across all sectors could benefit by acting on what the banking industry already knows: Community investment is the key to our collective success. By working with public institutions, private companies and financial partners, business leaders can help build resilient, inclusive economies that lift everyone.
Paul Burdiss is president and CEO of Zions Bank, which has been serving the communities of Utah since 1873 and operates 119 branches across Utah; Idaho; and Jackson, Wyoming.