According to a 2019 Federal Reserve survey, a conventional White family has eight times the wealth of a typical Black family. This gap prevails partly because of US financial policies and banking industry practices in the past that traditionally excluded African Americans from accessing banking services. Black-owned banks and credit unions concentrate on serving African Americans with financial services. This is accompanied by a mission to bridge the wealth gap in America.
Black-owned banks
A Black-owned bank is a regular banking institution where the board of directors comprises African American members. For the most part, the bank serves the African American community. However, this does not mean that people from other ethnicities or firms cannot reach out to them. In fact, Netflix, Inc deposits 2% of its funds in Black-owned banks. This is to advocate the Black Lives Matter movement and support the African American community. Being part of Black-owned banks would be a healthy way to advance their mission. If you’re curious about credit unions, you can check the membership requirements.
Black-owned banks and not-for-profit credit unions come to the aid of the African American community. Community development financial institutions (CDFIs) offer financial services for people who are underserving with moderate, low, or no income. These banks help people who had been denied bank accounts in the past. They also lend to Black-owned small businesses and homeowners, who are often denied loans. This is unlike White people who have more chances of getting them sanctioned.
You may also like : 5 Bank Fees to Avoid at All Times
Black-owned credit unions
Black-owned credit unions are not-for-profit institutions. Nearly all of its members, the board of directors, and the community it serves are African American. In most cases, membership would be narrowed to a city or group. This includes church members from a typical Black church or college or university employees that principally serve the African American community.
Some popular names
Broadway Federal Bank, Commonwealth National Bank, Howard University Employees Federal Credit Union, Alamerica Bank, Industrial Bank, FAMU Federal Credit Union, Omega Psi Phi Fraternity Federal Credit Union, Carver State Bank, Phi Beta Sigma Federal Credit Union, Citizens Trust Bank, Credit Union of Atlanta, United Neighborhood Federal Credit Union, 1st Choice Credit Union.
