Black-owned banks have been instrumental in fueling aspirations, backing small business enterprises, and supporting neighborhoods. These financial institutions play a major role in driving socioeconomic change and upward mobility for Black communities. Despite their role in fostering economic opportunity, many people struggle to identify Black-owned banks.
In discussions about economic empowerment and racial disparities in access to and wealth, this piece highlights several Black-owned banks that have dedicated leadership and a mission to aid underserved communities.
OneUnited Bank
OneUnited Bank is based in Boston and has branches in Miami and Compton, California, as well as offering digital services nationwide. It was established Aug. 2, 1968, under the name Unity Bank & Trust before rebranding. Now, OneUnited is co-owned by Teri Williams and Kevin Cohee. The bank stands as the pioneering Black-owned digital bank recognized as a Community Development Financial Institution (CDFI).
Industrial Bank
Industrial Bank is based in Washington, D.C., and operates branches in Maryland and New Jersey. Jesse Mitchell founded the bank on Aug. 13, 1934. It is independently owned and operated, and predominantly held by a Black board member group, which distinguishes it as a Black-owned Minority Depository Institution (MDI). As one of the leading Black-owned banks, Industrial Bank prioritizes community lending initiatives, as well as supporting small businesses.
Carver Federal Savings Bank
Carver Federal Savings Bank was established in 1948 in Harlem, New York. The bank stands out as a Black-run bank led predominantly by African Americans. It is recognized as a CDFI to assist individuals in achieving homeownership and running small businesses, while also nurturing new Black talent in the banking sector within New York City. The bank proudly upholds its title as a continuously operated and Black-owned bank.
Carver State Bank
Georgia Savings & Realty Corp. was established by Louis B Toomer on Jan. 1, 1927, before being rebranded as Carver State Bank in 1962. It stands as the oldest Black-owned bank in Georgia. The bank’s primary objective revolves around aiding businesses and promoting community growth in Savannah and its neighboring areas.
Citizens Trust Bank
Citizens Trust Bank was established on Aug. 16, 1921, in Atlanta and was founded by a team recognized as the “Fervent Five.” This financial institution is currently under the ownership of some individuals and is safeguarded by the Federal Deposit Insurance Corporation (FDIC). Citizens Trust is noteworthy for being one of the few Black-owned banks in Georgia and holds the distinction of being the inaugural Black bank in the region to be affiliated with both the FDIC and the Federal Reserve. The bank provides a variety of services, such as a selection of Small Business Administration (SBA) loans, housing assistance programs, and financial education campaigns.
Mechanics & Farmers Bank
Mechanics & Farmers Bank in Durham, North Carolina, was founded in 1907 by a group of nine businessmen led by Richard B. Fitzgerald and James E. Shepard. The bank officially opened its doors in 1908. Mechanics & Farmers Bank is now under the ownership and management of M&F Bancorp Inc. It holds the distinction of being a Black-owned and operating bank and is recognized as a CDFI. The bank provides a variety of traditional banking services.
GN Bank
GN Bank was established in Chicago in 1934. GN has a legacy of supporting African American neighborhoods in the area by offering home loans and financial services to residents on the South Side of the city. The bank has maintained majority ownership by African Americans and is dedicated to its mission and community-centric strategy.
Liberty Bank & Trust Company
Liberty Bank & Trust Company was established in New Orleans in 1972 by entrepreneurs based in Louisiana. This bank is run by African Americans and functions as a CDFI under the Liberty Bankshares umbrella. One of the aspects that draws people to bank with Liberty Bank is its distinction as a Black-owned bank, boasting assets that surpass $1 billion. Liberty Bank started with a goal to assist homeownership and aid enterprises in multiple states.
First Independence Bank
First Independence Bank was established on May 14, 1970, in Detroit. The financial institution has since grown to include branches in Minneapolis, with figures such as Berry Gordy Sr., Dr. Karl Gregory, and Robert Wright playing crucial roles during the Detroit unrest that led to its formation. The bank secured MDI and CDFI certification, making it the sole Black-owned bank headquartered in Michigan. First Independence primarily focuses on Detroit and the Twin Cities, offering services including business and personal loans, as well as financial education.
Greenwood
Greenwood is a digital bank headquartered in Atlanta that launched its services nationwide in 2022. The catalyst for the bank’s then-founders, Andrew Young, Michael “Killer Mike” Render, and Ryan Glover, was inspired by the Greenwood District in Tulsa, Oklahoma. Greenwood aims to empower Black communities not solely through traditional banking services but also business tools, educational resources, and equity-focused programs.
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