Monday, October 3, 2022

Which Banks Are Black Owned

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Banks Based In Black Neighborhoods

Chicago Entrepreneurs Urge Consumers To Open Accounts At Black-Owned Banks

Not all community banks and credit unions that focus on serving Black communities have sought a government certification for it. Though banks are not required to publish the locations and recipients of all the loans they make, they are required to report the locations of their deposits in branches. Bank regulation encourages banks to meet the credit needs of the areas in which they do business. This means that the location of branches and deposits can be a good proxy for what kind of communities the bank is focused on serving. If theres a particular Black neighborhood youre passionate about supporting, try searching the database of all community-focused banks for one that has a significant share of their money based in the zip code that matters to you.

Why Do So Many Banks Have First In Their Name

Local banks might be chartered by either the national government or the states, according to the National Bank Acts of the United States. Banks created under the new legislation frequently used the moniker First National in order to separate themselves from state-registered institutions, despite the fact that they were frequently larger and more prominent in their respective communities.

Black Owned Banks Offer An Option For The Unbanked

As a group, African-Americans have the highest unbanked and underbanked numbers even though recent numbers from the FDIC show a slight improvement. Unbanked people waste a lot of money with check cashing stores, prepaid cards and payday lenders.

ChexSystems and Early Warning Services are often the reason African-Americans are barred from opening a bank account. Banking mistakes happen that can cause the need for second chance banking options. Black owned banks like OneUnited Bank offer an online second chance checking account anyone can open.

#BankBlack Here are the top black owned banks to consider starting a banking relationship with.

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Greater Kinston Credit Union

The Greater Kinston Credit Union was founded in 1952 and provides a variety of loans and deposit accounts. People who live, work, worship, or attend functions in Lenoir, Greene, Jones, Craven, and Pitt counties are eligible for membership.

  • Branches: Branch Office
  • ATMs: Part of the CashPoints network
  • States: North Carolina
  • Services: Debit and credit cards deposit , nonprofit, and youth accounts mortgage and personal lending and other services
  • Assets: $12.91 million
  • Availability: Brick-and-mortar and online

How We Make Money

Black Owned Bank Expands To Two More States

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Mechanics & Farmers Bank

Founded in 1907 by nine businessmen, the Mechanics & Farmers Bank is a state-chartered commercial bank. By 1935, M& F Bank became the first lending institution in North Carolina to receive FHA certification. Mechanics & Farmers merged with Fraternal Bank & Trust in 1921 and acquired Mutual Community Savings Bank in 2008.

  • Branches: Charlotte , Corporate Headquarters , Durham Branch Durham-Chapel Hill Boulevard , Greensboro , Raleigh Branch Rock Quarry Road , Winston-Salem
  • ATMs: Durham Branch and Raleigh Branch East Hargett Street
  • States: North Carolina
  • Services: Personal and business services, in addition to wealth management
  • Assets: $316.45 million
  • Availability: Brick-and-mortar and online

Howard University Employees Federal Credit Union

Originally chartered on Oct. 11, 1935, the Howard University Employees Federal Credit Union provides financial services to employees of Howard University and their family members. Those who join Howard University Employees FCU have a lifetime membership.

  • Branches: C B Powell Building
  • ATMs: Part of the CO-OP and CU Here networks
  • Locations: Washington, D.C.
  • Availability: Brick-and-mortar and online

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What Is The Largest Black

OneUnited Bank is the nation’s largest Black-owned and FDIC-insured bank. It was established by combining Black-owned banks from across the country.

OneUnited offers fully-online banking nationwide, financial workshops for members, and has financed over $100 million in loans in recent years in low- and middle-income communities.

Netflix Ante Ups $100 Million To Black

Black own banks see boost in new accounts

An Apple iPad Pro with the Netflix streaming app visible on-screen, taken on March 6, 2020.

Streaming giant Netflix NFLX makes good on its pledge to put 2% of its cash, around $100 million, in Black-led banks and wants to send even more money in their direction to help close the racial wealth gap. The six financial institutions that received the funds include: Hope Credit Union, the Local Initiatives Support Corporation, The Change Company, Enterprise Community Impact Note, OneUnited Bank, and Calvert Impact Capitals Community Investment Note. With only 21 Black-owned banks in the U.S., this wave of support should be a demographic game-changer both commercially and personally, as 19% of Black families have either negative wealth or no assets at all.

The Breakdown You Need to Know: In June 2020, Netflix pledged to direct cash to banks supporting Black communities in an effort to help end the multigenerational capital isolation impacting many Black families. The streaming giant’s initial investment was intended to help cover bridge loans, participation loans and bank deposits available to African-American borrowers across the country. CultureBanx reported the company wants to continue this aim towards helping Black communities, especially those impacted by the coronavirus pandemic, obtain small-business loans.

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Hill District Federal Credit Union

The Hill District Federal Credit Union got its start in 1970 and has provided financial services to its members for 50 years. People who live, work, or worship in the Hill Districtas well as members of an organization that provides economic assistance in the same areaare eligible to join this institution.

  • Branches: Hill District Federal Credit Union
  • ATMs: N/A
  • States: Pennsylvania
  • Availability: Brick-and-mortar and online

Why Is It Called Fifth Third Bank

What is the significance of the name Fifth Third Bank? The name Fifth Third Bank came about in the 1920s when Third National Bank and Fifth National Bank merged to become The Fifth Third Union Trust Company, which became known as The Fifth Third Bank.

  • What originated as the Bank of the Ohio Valley in 1858 was sold to the Third National Bank in 1871, which then amalgamated with the Fifth National Bank in 1908 to form the Fifth National Bank. According to corporate legend, the name Fifth Third was selected over Third Fifth as a nod to the increasing temperance movement in the United States at the time of its formation.

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Liberty Bank And Trust Company

When it comes to assets, Liberty Bank and Trust Company falls second on this list.

Established in 1972, the bank has over $617 million in assets.

With over 150 employees, there are 19 branches around the South and Mid-West located in cities like New Orleans, Detroit, and Kansas City .

While they also offer numerous checking and savings account options, they are known for having the best savings account rate amongst other black owned banks.

Liberty Bank also gives their customers options for Visa credit cards.

Is Fifth Third Bank Black Owned

Why There Are Only 25 Black

Fifth Third Bancorp has increased its investment in a Detroit minority bank by another $2.5 million, making it the banks largest shareholder. Fifth Third made its initial investment in First Independence in 2008, putting $3 million into the company. Investing through its Fifth Third Development Corp., the company made the most recent investment.

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Final Thoughts On Black Owned Banks

Black owned banks play a major role in underserved communities. Lack of access to traditional banking means African-Americans have to depend on alternative financial services which are costly.

Specifically, alternative financial services consist of money orders, check cashing, payday loans, pawn shops, refund anticipation loans, rent-to-own services and title loans. These types of alternative financial services typically far outnumber traditional banking institutions in African-American communities.

Although the numbers of black owned banks have dwindled, the impact on African-American communities remains. These institutions offer services that African-American communities need a laser-like focus on to thrive, such as financial literacy, home ownership, building wealth, and fixing credit issues.

Why We Need Black

Achieving the American dream requires capital. And to grow capital, you need capital. Its a basic tenet of our economy.

But for generations of Black Americans, equitable access to the banking system is a promise that has never been fulfilled. From Jim Crow laws to the New Deal, Black Americans have faced systemic financial discrimination and exclusion, casting a long shadow of economic disparity that continues today.

The racial gap in wealth is stark. The average white family in the U.S. has a net worth of $171,000almost 10 times more than the average Black family, according to the Brookings Institute. African Americans are more likely to live in poorer neighborhoods with underperforming schools, poor infrastructure and limited access to quality healthcaresomething COVID-19 has brought to the forefront once again.

You have to peel back the onion to see why to where we are. When you do that, you will find this history of discriminatory practices and redlining neighborhoods is directly related to economics says Kenneth Kelly, chairman and CEO of $291 million-asset First Independence Bank in Detroit and immediate past chairman of the National Bankers Association, which represents minority-owned banks. While those things may not appear to matter 60 to 70 years later, they fundamentally do. They set the stage for the transfer of assets from one generation to another and the quality of education for those neighborhoods.

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Georgia Rich With Black

Black-owned and operated banking

Black-owned or operated banks and credit unions are nationwide, but many are focused right here in the southeast.

ATLANTA – As FOX 5 continues to highlight Black achievement during Black History Month, we look at banking. Access to credit is fundamental to financial growth and stability.

Black-owned or -operated banks and credit unions are nationwide, but many are focused right here in the Southeast.

Bank Black promotes these financial instituions and tracks them on their website. And many are concentrated in the Southeast. You can go in closer and check out a great map on Blackout Coalition to see what we have here in metro Atlanta.

Heres a handy list of what’s available in the state.

  • First Choice Credit Union
  • Omega Psi Phi Fraternity Federal Credit Union
  • Unity National Bank branch

But let’s focus in on First Choice Credit Union. Cassius F. Butts is the president and CEO. He told the Fox 5 I-Team his teams offer everything that a bank does – mortgages, credit card and auto loans. And this credit union serves a broad group of employee networks.

“Its important for people to realize we have employee groups from the Morehouse School of Medicine, from the Emory University School of Medicine. We have folks like the Black Clergy. We also have the Atlanta Business League. We have a lot of special employee groups who are part of our membership. And we are expanding.”

Why Should Someone Consider Banking With A Black

Black-owned banks report increase in clients following demonstrations, calls for action

Doing business with a Black-owned bank or credit union is a way to show solidarity with Black communities that may have experienced discriminatory banking practices and systemic racism.

It is crystal clear that Black banks have not benefited from the same level of support from the government and big business that the Big Banks have, Coward says. They have significantly fewer resources to pull from to support the communities they serve and beyond.

As community banks, these institutions can provide opportunities to develop a closer relationship with your banker.

Kelly cites small businesses trying to obtain federal Paycheck Protection Program money during COVID-19 as an example of how community banks can provide an advantage.

Those customers who had relationships with their bankers were more likely to be successful earlier than those who did not, Kelly says. When youre working with larger institutions, sometimes its easy to get lost.

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St Choice Credit Union

Founded in 1946, the Hospital Authority Credit Union was created to provide financial services to employees of Grady Hospital. In 1991, the organization became known as 1st Choice Credit Union.

  • Branches: Auburn Avenue Administrative Office and Grady Memorial Hospital
  • ATMs: Crestview Health & Rehabilitation Center and Ponce De Leon Center
  • States: Georgia
  • Services: Personal and business checking and savings, in addition to loans
  • Assets: $30.77 million
  • Availability: Brick-and-mortar and online

United Bank Of Philadelphia

Originally founded in 1992, United Bank of Philadelphia offers personalized banking services in the Greater Philadelphia area to both individuals and businesses. By providing financing to small businesses in urban areas, United Bank supports their growth and allows them to create jobs with livable wages, thus improving the economic condition of those working in the local community.

  • Branches: Center City and Progress Plaza
  • ATMs: C-Town Supermarket , City Hall , Criminal Justice Center , Masjidullah Inc. , Philadelphia Traffic Court , Police Districts , Revolutions at Penn Treaty , The Fillmore-Philadelphia , and West Philadelphia
  • States: Pennsylvania
  • Availability: Brick-and-mortar and online

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Background And History Of Black

Black-owned banks didnt exist until more than a century after the Bank of North America first opened its doors. Prior to the chartering of the first Black-owned bank in 1888, Congress and President Lincoln established the Freedmans Savings Bank in 1865. As part of the Freedmans Bureau, this institution was designed to help newly freed African Americans navigate the U.S. financial system.

Despite Congress voting to close the Freedmans Bureau in 1872, the bank continued to operate. In 1874, Frederick Douglass took over as the banks D.C. branch director, and he found the place to be rife with corruption and risky investments. Despite Douglass investing $10,000 of his own money in the bank in an attempt to save it, Freedmans Savings went bankrupt later that same year. Although the Freedmans Savings Bank doesnt fit the modern criteria of a Black-owned bank, it represents a critical first step.

The bank opened its doors in 1889 and went from a small operation in Brownes house to an institution strong enough to survive the financial panic of 1893. Although the True Reformers Bank continued to operate after Brownes death in 1897, problems were beginning to develop by 1900. Under its new president, the Rev. William Lee Taylor, branches were poorly regulated, unsecured loans were made, and an embezzlement scandal cost most account holders their savings. By 1910, the State Corporation Commission had ordered the bank to be closed.

How To Bank Black In The Uk

13 Black Owned Banks to help you #BankBlack

Banking black is easy.

First, conduct thorough research of potential banking providers and look into whether they support the black community or not. Currently, all black-owned banks in the UK are subsidiaries of large African banks. However, you may find banking providers who take a proactive role in supporting black communities across the UK.

If you have found a bank that fulfills your personal #bankblack criteria, learn about its products and services.

Next, open an account, make a deposit, and make use of whatever financial product or service suits your needs.

And thats it. You are now banking black!

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Guaranty Trust Bank Limited

Guaranty Trust Bank UK offers banking services to individuals and corporate customers with business or personal connections in Africa. The bank also serves customers visiting the UK.

GT Bank UK is committed to treating customers fairly. For instance, the bank is keen to provide products and services that meet the needs of customers by taking into consideration, where necessary, their finances, objectives, and lifestyles. This makes GT Bank UK a suitable candidate when considering to bank black in the UK.

How Icba Is Advocating For Minority Banks

Minority banks need legislative, regulatory and financial support to stay operational and profitable, and ICBA is working closely with Congress, agencies and federal programs to improve responsiveness to these needs.

Using the insights of its Minority Bank Advisory Council, ICBA is focusing its advocacy on finding solutions to strengthen minority banks and finding partners dedicated to this goal. These include changes that spur the creation of de novo minority depository institutions streamline the community development financial institution application and recertification process provide financial and technical assistance to MDIs and CDFIs and position these institutions to aid in COVID-19 relief.

For example, ICBA supported the provisions in the year-end stimulus bill that aimed to strengthen MDIs and CDFIs. These included:

To learn how you can advocate for ICBA-supported bills related to MDIs and CDFIs, visit icba.org/advocacy

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