Benefits of Using a Black-Owned Bank

Why America Needs Black-Owned Banks

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Black-owned banks used to be and continue to be a safe place for Black Americans to bank without any discrimination. These banks often help stimulate the economy in under-served communities. Black-owned banks have struggled in recent years. They were hit harder in the 2007 housing crisis, as many of their clients experienced job loss and foreclosure due to poorly financed mortgages. The number of Black-owned banks has fallen from 41 before the 2007 economic crisis, to not just 23 nationwide now. The need for these institutions has grown, despite the drop in quantity. Many Black Americans are “underbanked”, meaning there is an insufficient amount to meet market demand. This is particularly true in primarily Black neighborhoods, where customers may have to travel farther to a local branch. Black Americans who are disconnected from banks due to geography rely much more heavily on check cashers, pawn shops, payday lenders or other high-cost alternative financial providers.

#BankBlack

#BankBlack was an initiative started back in 2016 to motivate Americans to move some or all of their accounts to Black institutions. The higher demand would hopefully increase the quantity of these banks and therefore help the underserved communities that many of these institutions reside in. OneUnited, the largest Black-owned bank in America makes equal treatment and respect part of their mission; “Our mission is to be the premier banking institution for urban communities across America by: Offering affordable financial services for all. Treating all customers with respect, dignity and personal attention to their banking needs regardless of their account balances.”

Where can you #BankBlack?

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