Since the death of George Floyd, Black-owned banks have received an estimated $150 million in equity capital and are pouring the funds back into Black communities.
According to the National Bankers Association‘s (NBA) chairman Robert E James, the influx of the funds has put the country’s Black banking community in a stronger position today than they were a year ago. Black-owned banks have received significant support amid the Black Lives Matter movement last summer. Large banks, pro sports franchises and entertainers have all supported Black banks in the past year.
“Our banks can now leverage that into $1.5 billion to serve minority communities,” James told CNN Business.
CNN Notes FDIC records show 142 minority depository institutions (MDIs) increased their combined assets by 15 percent to a total of more than $287 billion. Now, Black-owned banks are putting that money back into Black communities, teaching financial literacy and closing the racial wealth gap.
Black-owned banks aren’t wasting this moment to help themselves, their customers and future clients.
One United bank, which has added more than 100,000 new customers in the last year, has opened new customer service facilities in Los Angeles and Miami. Additionally, the Black-owned bank is hosting a virtual conference later this month to promote and teach financial literacy as part of the bank’s One Transaction program.
One United is also helping its clients who own a business boost their online presence due to the disproportionate amount of brick-and-mortar stores for Black-owned businesses. Having an online presence is paramount to being successful today, especially after the coronavirus pandemic closed stores for more than a year.
Wells Fargo has invested $50 million in Carver Bank and as part of the collaboration, Carver customers can also access any Wells Fargo ATM with no additional fees. Carver has also partnered with the Society For Financial Education & Professional Development to teach financial literacy to HBCU students.
The National Banking Association is also assisting in the effort to close the racial wealth gap. The group holds multiple calls per week to help Black businesses access additional capital. The association is also helping member banks leverage financial technology, bringing fintech services to its customers and clients and recruiting larger banks to assist underserved minority communities.