opinion

McFarland: Wisconsin Native American Tribes innovate with financial technology

Wisconsin is home to 11 federally-recognized Native American tribes. Like elsewhere in America, the reservations within Wisconsin’s borders are, with few exceptions, located in rural and remote locations. And although remote reservations in Wisconsin and elsewhere are not historically known to be hotbeds of innovation, that changed dramatically with the emergence of the internet.

As a tribal economic development executive, I help tribes evaluate and operationalize new businesses. Tribes develop businesses for the benefit of their membership and the surrounding community in industries ranging from natural resources to federal contracting and gaming. And now, Native American Indian Tribes in Wisconsin have turned to e-commerce, which represents the largest economic development opportunity Indian Country has seen in the last 30 years.

Due to their status in the U.S. Constitution as sovereign nations, each of America’s 573 federally-recognized tribes have individual nation-to-nation relationships with the federal government. The U.S. government and Indian Country have had a complicated relationship as treaties were signed, broken, re-signed, and ignored. Despite these complexities, Native American Indian Tribes are able to engage in business governed by tribal law, regulated by tribal agencies and often paralleling federal law.

Examples of success in tribal e-commerce are born every day. Data storage, internet service, marketing, lead generation companies, and tribal installment loans are just a few of the mainstream products and services being offered by tribal websites and tribal lenders in the growing financial technology (fintech) industry. These companies are usually built from the ground up: tribal councils work with experienced industry professionals to partner during the first few years of operations, to ensure seamless knowledge transfer and early-stage growth.

Short-term installment lending is one area where there’s been significant progress for tribes. Tribal lending came to Wisconsin in 2012, and today three of Wisconsin’s 12 tribes are participating in fintech, and several more are evaluating the industry. Since that time, these tribal lending entities have moved from “great ideas on paper” to critical revenue generators for the tribes, funding essential services including education, health care, housing, and infrastructure. Many of these programs are for the benefit of the whole community, not just those living on the reservation.

Today is a unique period in time for Native American Indian Tribes to build sustainable economies in their communities. The internet is the great equalizer, giving access to consumers around the world to rural-based companies, as well as urban. Now that reservations are getting wired, Indian Country is uniquely suited to be a dominant player in every market across the internet — and they will follow the lead of innovative tribes in Wisconsin.

Brent McFarland is CEO and Managing Principle of Accretion Management and former CEO of the Lac Du Flambeau Tribal Economic Development Corporation.