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.
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.
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
The FDIC is important. This suggests a $250,000 bank loss is covered. Investing safely is important.
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.
Online and mobile banking are required. Consider this as more individuals leverage technology to manage their money. App? Calls? online account? Question:
Banks lack ATMs frequently. Consider this if you’re a cash-strapped traveler. Save at other ATMs to avoid banking fees.
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.
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,
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
Unity National Bank is Texas’ only black-owned bank. Two Texas locations and one in Atlanta. Banking, credit, and loans are available. Texas/Georgia
black-owned banks state-by-state.
In 2000, Birmingham’s Alamerica Bank opened. Personal, corporate, and commercial loans are available.
Mobile’s Commonwealth National Bank started in 1976. Consumers and corporations use it.
Broadway Federal Bank of Los Angeles and InglewoodThey serve real estate, corporate, and personal needs.
Carver State Bank serves Savannah, GA.
In the 1930s, GN Bank started giving mortgages to minorities. Personal and business banking are available. Chicago’s bank operates after decades.
- Harbor Bank
Baltimore’s Harbor Bank has six branches. They offer checking, savings, time deposits, credit cards, debit cards, business, personal, and auto loans.
First Independence Bank has two Michigan branches. Serving underprivileged and minority groups is how they make money.
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.
1907 saw the founding of the US’s second-oldest minority-owned bank. This bank offers financial planning, asset management, and more.
Oklahoma City’s First Security Bank & Trust is black-owned. Personal and business savings, checking, and loans.
United Bank supports Philadelphia businesses and residents. Black, Hispanic, Asian, and female customers are welcome.
Victory Savings and Loan became Optus Bank. It reduces racial wealth gaps. Consumers and small companies bank in Columbia, SC.
Tennessee’s first minority-owned bank was Citizens Bank in 1904. Serving Nashville and Memphis, If solicitations bother you,
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.
1924–Present: Columbia provides home, business, and personal loans. CDs and IRAs are offered.
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.
Black-owned banks boost minority economies. Minorities can get loans and financial services. Financial literacy is emphasized. This reduces US inequality.