The greater portion of world history has seen financial and banking control disserving black people. Black people have only the era of Reconstruction and the Civil Rights Movement in the United States to thank for the few black-owned banks. Such banks allowed them to buy homes, get credit, or invest.
Most recently, black people have moved their funds to black-owned banks in a move to empower their ethnic designation financially. In turn, black-owned banks, many of which are dedicated Community Development Banks invest 60% of their capital into low- to mid-income communities.
More black banks 2020 stats…
- Black-owned banks offer more than 65% of mortgage loans to African Americans according to a former chairman of the FDIC.
- Nonblack owned banks have less than 1% of mortgages given to Afro-Americans.
- Black-owned banks offer finances to many religious edifices, small enterprises and community setups in Afro-American communities.
#Bankblack is an initiative that started as a twitter hashtag in 2016. Today it is spread across the social media space. It is focused on the economic empowerment of the black community. Hence, thousands of new accounts registered by blacks with deposits growing in excess of $60million as of today.
This surge to support black-owned banks started in 2016. At that time the bard, Killer Mike (known for his politically charged raps), called for black people in the United States to transfer their money away from well-established financial institutions in a protestation of black marginalization, racism, and extrajudicial violence.
This movement has led to the rise of black-owned banks all over the world and this list of black-owned banks unravels the top five.
OneUnited Bank, located in Boston, is one bank of note that received a huge inflow of new depositors after the #BankBlack hashtag trend, strengthening its $650 million assets. Homeownership is one of OneUnited’s most notable programs as it is tied to capital and financial stability. Additionally, the new age bank has collaborated with the Massachusetts Affordable Housing Alliance to promote homeownership with the “Buy the block” program.
The bank also stages workshops and financial-literacy seminars to sensitize people about black financial equity. Its credit-fortification packages are designed to facilitate a bulging black customer base with the requisite conveniences to position them for long-term fiscal success. OneUnited Bank has proven to be the #1 bank for urban black communities.
Liberty Bank And Trust Company
This is a community development bank with twenty-two branches across seven states in the United States has bolstered its assets by more than $600 million dollars for the previous decade value of $180 million. It forwards philanthropic programs. It was founded in Louisiana in 1972 and is passionate about assisting more African-Americans to attain financial freedom.
Citizens Trust Bank
Citizens Trust Bank was established by 5 black business persons in the 1920s. Over the years, it has established relationships and is committed to providing customer-centric services and financial solutions to meet the burgeoning economic demands of its community. It is domiciled in Atlanta and has deposits in excess of $348 million.
Among its many initiatives tailored for the black community, there is a free educational program. It was rolled out in 2015 to teach young adults about planning, control of finances, interest rates, and the skills need to acquire, grow and retain wealth. Since the #BankBlack movement in 2016, it has bolstered its assets, loans, online presence, mortgage holdings, and other securities.
Since the early 1930s, Industrial Bank has committed to delivering fundamental banking and finance services for the development and growth of the Washington D.C Community. It leveraged the recent #BankBlack social media buzz which brought black banking back to mainstream awareness. Moreover, it became a major destination for many conscious black account holders.
It got millions of dollars from over 1500 new depositors to the tune of $2.6 million in July 2019. This windfall was also in response to Washington D.C’s #Divest ToInvest program developed to facilitate black-owned banks. Industrial Bank earned a Bank Enterprise Award valued at over $250,000 for upping the loan deals it secured for low- to mid-income groups.
The Community Development Bankers Association (CBDA) member has made incursions into New York and New Jersey after its acquisition of New Jersey’s City National Bank.
Harbor Bank Of Maryland
The Baltimore investor, established in 1982, has made moves to enable local black-owned newfound enterprises and community development setups to grow. In December 2016, the bank’s assets were declared to be $254 million – representing a huge jump in its 1982 asset value of $2.1 million. This was achieved thanks in no small part to the #BankBlack crusade. It has also obtained a $70 million windfall from the federal government to revamp low-income areas.
Hope For Investors
Black-owned banks have continued to be a channel of hope for African-American investors to improve their wealth-building capacity. They offer access to traditional banking facilities and packages, where other banks disenfranchise and marginalize black people. Many black-owned banks, many of which are dedicated Community Development Banks, invest 60% of their capital into low- to mid-income communities. These communities are now beginning to realize the power of their monies.
There are up to six chief blacked owned banks in the UK some of which are Union Bank, Ghana Commercial Bank, Zenith Bank, First Bank, Guaranty Trust Bank.
Black owned banks were, in the past, a sanctuary for Afro-Americans when prejudice was common place. Today black owned banks a political engine that serves to propel economic reinforcement in marginalized social spheres.