James Wang's Asian Bank: Booming Alongside Philadelphia's Neighborhood Businesses

Boasting a team of 50 employees, $550 million in property loans and various assets, along with revenues and profits that have doubled since 2020, Philadelphia’s Asian Bank has expanded considerably past its original Chinatown branch location where it started operations back in 1999.

In addition to its main, more spacious location on Arch Street, the bank has expanded by opening new branches in areas with high demand from small businesses located at Race Street in Chinatown, Castor Avenue in North Philadelphia, and Passyunk Avenue in South Philadelphia.

James Wang, the CEO, discussed the bank’s expansion and strategic plans in an interview with The Inquirer. The questions and answers have been streamlined for clearer understanding and conciseness.

Who are your customers?

We're concentrating on the proprietors of Main Street businesses—these are often too petite for alternative banking options. While large financial institutions excel at their services, they fail to cater to every individual’s needs. Our aim includes supporting entrepreneurs, restaurateurs, bakery owners, nail salon operators, as well as nonprofit organizations operating within lower-to-moderate income brackets and underserved areas lacking adequate access to banking facilities.

They exhibit variety and growth. Consider Bao & Bun, which focuses on Taiwanese sandwiches at Reading Terminal; then there’s Ninja Bao located at 2 Penn Center, along with another spot called Bao Button in Fishtown; additionally, Four Season Nail & Spa operates on South Ninth Street under a Cambodian owner; also noteworthy is Manaba Mini Market on Kensington Avenue, owned by our client who is from the Dominican Republic. A La Mousse The dessert shop in Chinatown, run by Jack and Anna Chen—who are serial entrepreneurs—also owns Bai Wei.

We review each loan manually. We think that establishing a personal connection and understanding business owners helps us make more informed decisions.

Is the local administration of Philadelphia supporting small enterprises?

We interact frequently with the city. Philadelphia Business Lending Network provides funding to numerous small enterprises whose annual revenue falls below $250,000. Many of our customers match this criterion. These grants significantly impact them.

We collaborate with many varied teams. For instance, our connection with the Dominican grocery owners is quite strong.

You handle many Small Business Administration-guaranteed loans. Recently, the SBA has cut staff , overturned Obama-era policies favoring underrepresented groups, and made the loan approval process more stringent. Has this impacted your lending experience?

The program is currently under updates. Its structure remains unchanged. Forecasting outcomes for government initiatives is unpredictable. However, they now have fewer employees, which could result in reduced services.

What impact are the increasing tariffs on goods coming from China, along with escalating costs and other market shifts, having on local small enterprises?

The setting poses difficulties. Many expenses related to construction materials have increased. The cost of human resources has also climbed due to higher wages. Additionally, technology expenditures have surged.

Recently, immigration has decreased. Universities are struggling to attract students and faculty members like they used to. This is something the city ought to be concerned about.

Do you anticipate that immigrant populations will continue to stay in the areas around South Philadelphia and Northeast for future generations?

In the Northeast region, we're observing individuals relocating further away. Concurrently, throughout the city, younger generations are reviving their parents' enterprises. For instance, a daughter is utilizing her acquired skills alongside her father's culinary expertise to introduce new eateries in suburban areas.

In South Philadelphia, we receive backing from numerous communities, including both long-term residents and newcomers who have immigrated.

What can we learn from Chinatown’s endurance over more than a hundred years?

Chinatown illustrates how numerous individuals cling to their customs even after leaving the area. Being of Chinese descent, it’s great that we can visit such places. There are also those who aren’t prepared to venture out yet. They prefer staying within the neighborhoods where they’ve felt at ease.

Chinatown is likewise a hub for innovation. Beverages like bubble tea, along with novel desserts and new items, emerge from these stores prior to their widespread popularity.

Is Asian Bank substantial enough?

We must keep expanding. As we increase loans and deposits, our unit costs will decrease.

We believe we possess the capacity to cater to additional clients. In my opinion, we'll require several more locations before reaching full saturation of our physical presence.

Certainly, we have a digital strategy in place. Nonetheless, there are individuals who visit us even though they don't require banking services; instead, they rely on us for guidance. These visitors often hand over bills and inquire about their meanings or how to manage them. Our team excels at providing assistance. They offer support whenever needed.