New Resource Bank: Where Money Isn't the Only Thing That's Green

By Amber Hsiao | Wednesday, January 16, 2008

Now even banks are getting into the new green craze. San Francisco-based New Resource Bank announced in August that it had reached more than $100 million in assets since launching in November 2006, thus quadrupling in size and establishing itself as a leader in the green movement.

New Resource Bank is a commercial bank that conducts the usual day-to-day banking activities with one notable difference — its business model focuses on entrepreneurial activities and green activities amidst signs of global warming and concern for the environment.

Like all major banks, it is FDIC-insured, so it is required to serve the community at large. Not all of its clients are green, but many are. Even so, the bank’s founder and Vice Chairman Peter Liu — an immigrant from Taiwan, and a U.C. Berkeley and Princeton graduate — has learned valuable lessons that he wants to apply to the bank industry.

Liu learned of the values of sustainability early. “As an immigrant, my parents sought a better life for me through their sacrifices — that’s a wonderful lesson for sustainability,” Liu said. “With problems like global environmental degradation and worsening energy security, my generation has real challenges to leaving our world a better place for our children.”

While Asian communities traditionally have not been on the forefront of the green movement, a few individuals have become prominent leaders, including eco-living guru Danny Seo, author of the best-selling Simply Green series, and venture capitalist Vinod Khosla, who has extolled alternative energies such as biofuels.

Just as Seo and Khosla have broadened the influence of green activities in homes and companies, Liu’s goal is to apply green principles to banking. “We believe that sustainability happens through individual consumers and economic activity, through green growth,” Liu said.

The bank has nearly 1,000 customers from across the nation, by Liu’s estimates. Individuals — who make up approximately 70 percent of the bank’s clientele — will often secure loans from New Resource Bank to switch from electricity to solar panels to power their homes.

The other 30 percent of clients are larger companies who may use the funds to build workstations, houses, furniture and supplies with green technology. The bank also serves a number of prominent green businesses and lends at a lower rate to those who build green or use clean technology. In terms of dollar deposits, the 70 to 30 ratio is flipped — activity from larger companies and businesses make up the majority of the bank’s deposits.

New Resource Bank also recently received a Leadership in Energy and Environmental Design gold certification for its environmentally friendly interior design.

“It’s really part of our DNA to be green,” Liu said. “We built our building so that we could provide a healthy workplace for our employees and clients. We have high levels of energy efficiency — the lights turn off by themselves if the outside light is bright. Our heating and cooling equipment is highly efficient. Everything from our building materials, workstations, furniture and everyday supplies are green.”

Other banks are following suit as well, according to Liu: they have consulted with the government about how small businesses can be energy efficient.

But the work has not always been easy. “There is certainly some political opposition to greater energy efficiency and renewable energy, but that is beginning to turn,” Liu said. “The recent Congress and California, for example, show that the public wants more energy efficiency and energy independence. People want the government to address climate change, and certainly, the general public is becoming aware of the consequences of not doing anything.”

Still early in its growth, the bank is looking to expand its operations and hire new bankers who are entrepreneurial and believe in the green ethos.

“Banking is often associated with working the 9-to-5, but many of our bankers want to be there for their clients,” Liu said. “They understand that it takes the ability to think outside of the box.”

Asian Americans are particularly suited for the concept of sustainability, according to Liu. “Looking to the future and not just living in the moment is in many ways a Chinese traditional virtue. It’s very much a mindset that we need for a more sustainable world.”

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Originally appeared in AsianWeek Newspaper, Bay Area and Commerce section. See the original article.