Like many minority-owned businesses, black-owned banks were formed of necessity. Racism in financial institutions stopped blacks from banking.
After centuries, minorities still endure institutional racism in the banking sector. This includes mortgage-rate discrimination and small-business loan issues. Blacks are underserved by financial institutions.
Black-owned banks serve people that conventional banks don’t. These lesser-known banks service communities across.
The demographic
A black-owned bank has at least 51% black ownership or a majority black board, according to the FDIC.
These banks provide community help and financial education. Black banks assist minorities with financial education and access.
The FDIC reports that 21.7% of black households are unbanked and another 18% are underbanked. Minority groups lack bank accounts and financial institutions.
Financial predators target the poor. Examples: check cashing and payday loans. Inadequate banking and financial illiteracy aggravate racial wealth disparities. This hurts black families.
Black-owned banks
Banks receive deposits, Banks store money for loans and other products. This boosts bank capital. Banks also earn fees.
The top 20 black-owned banks have $5.5 billion in assets, compared to other banks’ trillions.
Several groups are expanding black-owned banks. 2016 saw “Bank Black.” Black banking is promoted. Organizers and supporters ask for $100 to fund lending and other services for minority communities.
Large corporations and banks have funded minority communities through black banks.
White- owned banks
Black banks aren’t only responsible. Racial wealth discrepancies are reduced. Black communities can acquire business loans and other financial services from a black-owned bank. This boosts job creation, homebuying, and economic strength,Do your research before switching to a black-only bank.
Tips for choosing a bank
FDIC-insured
The FDIC is important. This suggests a $250,000 bank loss is covered. Investing safely is important.
Accounts, services
Make sure a bank can suit your needs before choosing it. Obtain a business loan from a bank. Your financial goals should choose your bank.
Banking online/mobile
Online and mobile banking are required. Consider this as more individuals leverage technology to manage their money. App? Calls? online account? Question:
Need ATMs.
Banks lack ATMs frequently. Consider this if you’re a cash-strapped traveler. Save at other ATMs to avoid banking fees.
African-American banks
In recent years, black-owned banks have shrunk. Fewer than 20 US banks are black-owned. Minority credit unions aren’t included. Black-owned banks are listed below.
National and regional black-owned banks
These are black-owned national and regional banks.
- CITIBANK
Citizens Trust Bank serves Georgia and Alabama. They offer credit cards, mortgages, auto, personal, and business loans. GA/AL
- Industrial Banks
D.C.’s Industrial Bank served D.C. from 1934. Maryland, New Jersey, and New York are affected. Industrial Bank lends to customers. NYC, NJ, MD,
- BankOne
Black-owned OneUnited Bank is large. Los Angeles, Compton, Miami, and Boston are locations. The bank, founded by uniting black-owned institutions, offers personal and corporate accounts and real estate lending. Florida, Massachusetts, and California
- UniBank
Unity National Bank is Texas’ only black-owned bank. Two Texas locations and one in Atlanta. Banking, credit, and loans are available. Texas/Georgia
- afribanks
black-owned banks state-by-state.
Alabama
- Alamerica
In 2000, Birmingham’s Alamerica Bank opened. Personal, corporate, and commercial loans are available.
- CommBank
Mobile’s Commonwealth National Bank started in 1976. Consumers and corporations use it.
California
- Broadway-Bank
Broadway Federal Bank of Los Angeles and InglewoodThey serve real estate, corporate, and personal needs.
Georgia
- Carverbank
Carver State Bank serves Savannah, GA.
Illinois
- GNB
In the 1930s, GN Bank started giving mortgages to minorities. Personal and business banking are available. Chicago’s bank operates after decades.
Maryland
- Harbor Bank
Baltimore’s Harbor Bank has six branches. They offer checking, savings, time deposits, credit cards, debit cards, business, personal, and auto loans.
Michigan
- Freebank
First Independence Bank has two Michigan branches. Serving underprivileged and minority groups is how they make money.
Manhattan
- CARVER
Carver Federal Savings Bank has seven NYC branches. The largest African and Caribbean American-run minority bank in the U.S. Their goal is to offer affordable banking products.
Nc
- M&F
1907 saw the founding of the US’s second-oldest minority-owned bank. This bank offers financial planning, asset management, and more.
Oklahoma
- FSTBANK
Oklahoma City’s First Security Bank & Trust is black-owned. Personal and business savings, checking, and loans.
Pennsylvania
- PNB
United Bank supports Philadelphia businesses and residents. Black, Hispanic, Asian, and female customers are welcome.
s.c.
- Optus
Victory Savings and Loan became Optus Bank. It reduces racial wealth gaps. Consumers and small companies bank in Columbia, SC.
Tennessee
- CITIBANK
Tennessee’s first minority-owned bank was Citizens Bank in 1904. Serving Nashville and Memphis, If solicitations bother you,
- BB&T
Memphis-based Tri-State Bank was founded in 1946 to benefit communities. Individuals and businesses can borrow from the bank. The merger created the nation’s largest black-owned bank.
Wisconsin
- SC&L
1924–Present: Columbia provides home, business, and personal loans. CDs and IRAs are offered.
Black-owned banks
These banks offer online banking. Their services don’t require centralization. Bank account opening is easier online. Visit the banks’ websites to find a local branch. Branches exist.
Summary
Black-owned banks boost minority economies. Minorities can get loans and financial services. Financial literacy is emphasized. This reduces US inequality.
