How Black Owned Banks Can Support Your Financial Needs for Generational Wealth
Here is how Black Owned Banks can Support Your Financial Needs for Generational Wealth, plus a list of Black Owned Banks to Get You Started!
Education is very important to me and that extends to financial education, too.
Black people and families haven’t always received the proper education needed for financial success, responsibility and opportunity. We’ve been held back from these discussions and institutions for decades, and if you don’t know what I’m talking about, read this post on generational wealth!
Especially since the tragic murders of unarmed Black men and women that took place in 2020, Black owned banks are making huge strides to change the opportunities available for our community and others, and really honing in to help create generational wealth.
Here’s everything you need to know about Black owned banks, including what they are, how they can support your financial needs to build genErational wealth. Plus check out a list of Black owned banks across the country!
What is a Black Owned Bank?
Did you know the typical white family as 8 times the amount of wealth compared to the typical black family? Shocking, right?
Years and years of political policies and banking practices have helped create this enormous gap, but Black owned banks are doing something about it.
Black owned banks and credit unions (not for profit banking institutions) are just like any other bank, except that they work actively and intentionally to provide bank accounts and extend loans to the underserved or previously denied.
They focus on educating and servicing black households, homeowners and small-businesses.
I love this mantra from One United Bank (the first black internet bank and largest black owned bank in America): “Black lives matter. Black Money matters.”
A feW BIG Ways Black Owned Banks can Support Your Financial Needs To build generational wealth
1. They Go Where Other Banks Will Not.
Far fewer people in the BIPOC community hold bank accounts compared to white America. For example, 14% of black households do not have bank accounts compared to just 2.5% of white households.
Black owned banks are helping to bridge this disparity by serving more low and moderate income areas and providing resources in “bank deserts” (locations where the closest bank is miles away).
Here’s some data from NerdWallet to help paint the picture: “For example, most of the population that the typical Black-owned bank serves, 62%, is African American, compared to 6% for metro-area banks that are not MDIs” (Nerd Wallet).
NOTE: MDI stands for minority depository institutions.
2. Black owned banks can help you get a mortgage.
Home ownership is another important entry point for generational wealth. Black individuals made up just 6% of mortgage borrowers in 2019, compared to 60% for whites. Traditional lending policies can be a huge barrier for non-white borrowers, but black owed banks are stepping in to turn that tide.
Minority-owned banks give more home mortgages and small business loans to borrowers of color than other banks do, according to the FDIC report (NerdWallet).
Owning a home provides financial security and stability which can be passed onto future generations or used to create passive income.
3. Black owned banks can support your small business with loans and protection plans.
Entrepreneurship is a major way of creating generational wealth. Small business loans are a focus for Black banks and they make a point to help build Black owned business in their communities. They’ve also stepped up to support small business during the COVID-19 pandemic.
For example, “Minority banks have made over 123,000 Paycheck Protection Program loans for a total of $10.3 billion through August 2020” (Nerd Wallet).
4. They provide a personal touch catered to your needs and concerns.
Most Black owned banks are also community banks. This means they have a personal report with their patrons and an interest in serving their neighborhoods in specific and meaningful ways.
They often make personal calls to ensure their patrons know about important programs and policies that can help their businesses and households. They take a real interest in the people they serve and are vested in their success.
They also support community development initiatives, provide financial literacy workshops and financial aid to underserved black communities.
Can you Join a Black Owned Bank if You’re Not Black?
Absolutely!
Black owned banks serve members of all ethnicities and backgrounds. In fact, this is one of the best ways allies can help support the black community along with supporting and shopping at black owned businesses.
Tell your friends, tell your family. All are welcome!
A List of Black Owned Banks, Nationwide
Digital Black Owned Banks
In this day and age, we do everything digitally - from connecting with friends and family, “running” errands, and handling our finances is no exception. There are a couple of digital Black owned banks that have changed the game when it comes to banking Black and supporting the Black community to build generational wealth.
Greenwood Bank, a start up digital Black owned bank, seeks to provide accessible financial services toBlack and Latinx communities.
Carrying the motto “Modern Banking for the Culture”, Greenwood Bank is a start up digital bank founded by Michael “Killer Mike” Render, a well-known artist-activist-entrepreneur in the Black community. An Atlanta native, he is very clear about his connection to the Black community and the importance that resources have on opportunities. His partner in the starting of Greenwood bank, Ryan Glover, is the founder of Bounce TV. Their goal is to provide services, in an accessible way, to the Black and Latinx communities that have traditionally been underserved.
First Boulevard was founded with a goal to mirror that of Black owned banks: Empower Black Americans to take control of their personal and business finances.
Founders Donald Hawkins and Asya Bradley were compelled to create First Boulevard with the goal of supporting Black people, families, and businesses with financial services. Their model is differentiated because it focuses on centralizing financial resources for communities of color. Another important piece of the model they are building for First Boulevard Bank is to create a service team that is inclusive, representing the community which they serve.
Brick and mortar Black owned banks in a city near you
A list of Black owned banks to visit to befin your journey to building generational wealth
Here’s a list of black owned banks from the Simple Dollar. If you don’t see a bank near you, check to see if you can benefit from online services:
Alamerica Bank – Birmingham, Alabama.
Citizens Trust Bank – 15 cities throughout the U.S.
Columbia Savings and Loan – Milwaukee, Wisconsin.
Commonwealth National Bank – Mobile, Alabama (2 locations)
Broadway Federal Bank FSB – Los Angeles, California (2 locations)
Carver State Bank – Savannah, Georgia (2 locations)
Carver Federal Savings Bank – 3 cities in New York
Columbia Savings & Loan ASSN – Milwaukee, Wisconsin.
GN Bank – Chicago, Illinois.
First Independence Bank – 2 cities in Michigan
Harbor Bank of Maryland – 3 cities in Maryland
Liberty Bank & Trust CO – 10 cities throughout the U.S.
Industrial Bank NA – multiple locations in New York, Maryland. and New Jersey.
OneUnited Bank – Los Angeles, California; Boston, Massachusetts, and Miami, Florida.
Optus Bank – Columbia, South Carolina.
Mechanics & Farmers Bank – located in five cities throughout the Carolinas.
Tri-State Bank of Memphis – Memphis, Tennessee.
Unity National Bank – 3 cities in Texas and Georgia.
United Bank of Philadelphia – Philadelphia, Pennsylvania.
I hope you’ve enjoyed learning more about Black owned banks in America, the financial literacy movement, and the groundwork being laid to support Black individuals and families to create generational wealth. Have I convinced you to check out a Black owned bank near you?
Let me know your thoughts and how you plan to educate your family, support the community, and build generational wealth of your own.
If you liked this post, be sure to check out this catalog of posts to improve your credit, these money-saving and frugal living tips and everything you need to know about generational wealth including side hustles to earn extra income and financial affirmations to get your mind right!
Financial literacy can help you build generational wealth for yourself and your family. Here’s how!