The black bank movement is a national effort to support black-owned businesses and increase financial inclusion for African Americans. This mission was born out of necessity: African Americans have had limited access to banking resources and services as a marginalized community. The black bank movement began in the 1960s with the rise of black nationalism, which gave rise to the idea that African Americans should take control of their finances by investing in other minority-owned businesses rather than those owned by white people. Today, more than 2 million small businesses are owned by African Americans across the country—and they’re growing stronger daily!
Bank Black Movement Grows $45 Million Investment To Accelerate Financial Inclusion.
Greenwood Inc., launched in 2020 as the “Bank Black” movement gained national prominence following the police murder of George Floyd, announced it raised $45 million in venture capital to help expand its digital banking business. The bank—which is adding waitlisted customers every month—currently has over 100,000 accounts. It will use this new funding to hire more developers and data scientists to build its digital platform. It also plans to invest in technology that will allow customers to open checking accounts and apply for loans online in a matter of minutes rather than the days it takes now.
Greenwood, an Atlanta-based startup that has partnered with the United Negro College Fund and T.I., was co-founded by former entertainment executive Ryan Glover, tech entrepreneur Paul Judge—Michael “Killer Mike” Render’s uncle—and 90-year-old former Atlanta Mayor Andrew Young Jr. They named it for the Greenwood neighbourhood in Tulsa, Oklahoma—home to Black Wall Street, a once-thriving African American community destroyed by white rioters over a century ago.
The company was launched with the belief that Black and Brown consumers would increasingly choose to do business with minority-owned financial institutions as an alternative to mainstream banks, which have a long history of discrimination. Greenwood said that it has approximately 200,000 people on a waiting list of potential customers.
Bank Black’s $45 Million Move To Increase Black Wealth
The documentary on the black bank movement was released in February 2019 and can be viewed on Amazon Prime Video.
It is essential to watch this documentary because it covers the history of financial exclusion and how it affects people of colour today. It also shows how we can all participate in the fight for economic freedom by not supporting institutions actively engaged in systemic racism, gentrification and white supremacy.
Making sure your money does not support racism is as easy as knowing what banks fund private prisons, fossil fuels or police militarization – and then moving your money out of those institutions into one that doesn’t invest in those things (or at least doesn’t fund them with your money).
Black Americans supporting black-owned businesses
The investment will increase the company’s national footprint and expand its product offerings. Black Americans supporting black-owned businesses
The importance of supporting black-owned businesses has been a growing movement within the black community. A report by Nielsen shows that African-Americans are more likely than other racial groups to buy products from companies owned by people in their own ethnic group, which is called “ethnic loyalty.” This trend has been growing since the 1960s, especially among young adults between 20-24 years old with higher spending power than any other age group in America.
Black-owned banks make up only 0.0002% of the U.S. banking system.
The community’s response to the lack of black ownership and representation in banks has been encouraging, but it is still only a tiny percentage of what it should be. In fact, according to the Federal Deposit Insurance Corporation (FDIC), there are just two African-American-owned banks in the country with assets over $100 million: Citizens Trust Bank, based in Atlanta, and OneUnited Bank (now OneUnited Bank Massachusetts), based in Boston. The rest have assets between $5 million to $100 million or less.
A brief history of black-owned banks in the U.S.
In the 1960s, black-owned banks were started to serve the black community. They were created to provide loans to African-Americans who had been denied access to traditional banks. Many of these institutions have been around for decades and exist today.
Why do we need black banks?
The biggest reason we need black banks is that black people have historically been excluded from the banking system. Black banks are necessary because of the systemic racism that exists in our country. The United States has a long history of discrimination against African Americans, including denying them access to capital and credit. For example:
- In 1865, Congress passed the Civil Rights Act, which allowed blacks to join white-only unions and prohibited discrimination based on “race, colour or previous condition of servitude”; however, this law was not enforced until after World War II.
- In 1866, Congress passed the Fourteenth Amendment, which gave citizenship to all persons born in America (except Indians); however, this amendment did not apply until 1898, when it was ruled that Native Americans could become citizens under an act passed by Congress (the Indian Citizenship Act).
The black bank movement has become an integral part of the black community.
There is more than one way to look at the black bank movement. One perspective is that it has been around for a long time, growing in popularity. Another view is that it’s an integral part of the financial system and a necessary step toward greater financial inclusion.
That said, it’s clear that the black bank movement has become an integral part of the black community, which makes sense considering how much money African Americans are generating each year. According to Forbes contributor Nick Sousanis, “Blacks make up roughly 18% of Americans but comprise 21% of millionaires.”
Conclusion
If you’re looking for a way to get involved in the black bank movement and support black-owned businesses, look no further than Greenwood.
