Black-Owned Banks and Credit Unions

Black-owned banks tend to serve African Americans more than other banks do. Their mission includes closing the wealth gap in America.

The typical white family has eight times the wealth of the typical Black family, according to a 2019 Federal Reserve survey. This gap exists in part because of past U.S. policies as well as banking industry practices, which historically excluded Black Americans from access to credit and banking services.[1]

Black-owned banks — and their not-for-profit equivalent, credit unions — are intentional about helping the Black community. Most are community development financial institutions, which provide financial services in underserved and low- to moderate-income areas. (Learn more about CDFIs.) These banks connect those who have been denied accounts in the past with banking services[2] and lend to Black-owned small businesses and Black homeowners, who are both denied loans more often than white borrowers.[3]

Frequently asked questions

“We’re making Black America a better place, and by doing so, making all America a better place,” says Kevin Cohee, CEO and chairman of OneUnited Bank, one of the largest Black-owned banks in the U.S.

List of Black-owned banks and credit unions

Here are some of the Black-owned financial institutions, and two online-only platforms that partner with banks, currently operating in the U.S.

Washington, DC (branches also in MD, NJ, NY)

New Orleans, LA (branches also in AL, IL, KS, KY, MI, MO, MS)

Boston, MA (branches also in CA, FL)

Jackson, MS (branches also in AL, AR, LA, TN)

St. Louis, MO (branches also in IL)

Houston, TX (branches also in GA)

Don’t see your Black-owned credit union here? Let us know.

Note: This list is not exhaustive, due in part to the different processes for banks and credit unions to be recognized as Black-owned. For banks, Black-owned means the institution is owned by stockholders, and the Federal Deposit Insurance Corporation tracks eligible banks. All 20 Black-owned banks are represented as of the most recent list, the third quarter of 2020.

For credit unions, members are the owners, and the National Credit Union Administration relies on credit unions to self-report as Black-owned. Not all credit unions from NCUA’s list could be verified as Black-owned.[4]

Article sources and further context

Source link

Comments (No)

Leave a Reply