The Importance of Black Owned Banks

Importance of Black Owned Banks | OneUnited Bank

Martin Luther King Jr. told the audience to move their money from downtown banks to TriState – a Black owned bank in Memphis – during his famous “Mountaintop” speech in 1968. Black owned banks were created both prior to and during the Civil Rights Movement when traditional banks were not allowing Black people to open accounts. Although the country is now more integrated and Black people can do business with any bank they choose, it is more important than ever to use Black owned banks to help accelerate the economic revitalization of distressed communities.

Today, African Americans make up 13.2% of the U.S. population, yet there are only 21 banks owned by African Americans (out of nearly 6,000 total banks or 0.4%). The Black community continues to experience a dearth of mainstream financial services options. Over 30% of African Americans live without a bank account or are considered underbanked – meaning they have to supplement their financial services with banking alternatives like check cashing services.

Access to Financial Services

African Americans without bank accounts are disconnected from the financial services they so desperately need to move ahead, including attaining mortgages and business loans. All too often, Black people experience job loss or financial loss and are turned down by mainstream banks when they apply for loans or mortgages. Even when their credentials are comparable to individuals who are approved for loans or mortgages, studies have shown that African Americans do not receive comparable rates and services. By contrast, Black owned banks offer competitive rates and services. In the event a Black owned bank is unable to provide a loan, they offer other financial products to help rebuild credit such as a secured credit card or a second-chance checking account for those who have been denied a bank account because of a ChexSystems record.

Strengthening the Community

Black owned banks are typically located within urban and Black communities. They are more likely to lend money to Black people. They are more likely to support and lend money to help start Black owned businesses. They are also more likely to employ Black people. Supporting Black owned banks by opening a savings account, applying for a loan, getting a single family mortgage, and enjoying the conveniences of online banking all serve to keep people employed in urban communities while also supporting options that better serve the needs of the Black community.

When Black people circulate more of their money within Black communities – as other ethnic groups currently do – it helps support and build the community. Right now, Black people spend a fraction (2-3%) of their dollars with local Black owned businesses and purchase the lion’s share of their goods and services (97-98%) elsewhere. Keeping more money in the Black community will go a long way to create wealth and open the door to greater opportunities in areas that are financially distressed.

As an example, OneUnited Bank, the largest Black-owned bank in America, serves everyone and needs everyone’s support, regardless of race, religion, ethnicity, gender, sexual orientation, etc. Yet OneUnited Bank seeks to overcome the historical challenges that the Black community has faced with financial institutions including redlining, subprime loans, foreclosures and other predatory practices. OneUnited has never engaged in these practices. Instead, it supports community development with home loans, multifamily and commercial real estate loans, a secured credit card to rebuild credit, free financial literacy, free meeting space for non-profits, and affordable banking services that promote saving for the future.

Changing the Mindset

We can take steps to strengthen and build the community by changing our mindset – and this includes more economic engagement. If millions of people opened an account with an FDIC-insured Black owned institution like OneUnited Bank or did more business with Black owned businesses, it would help to grow the wealth of Black communities. Start by joining the #BankBlack movement and make a difference today!

OneUnited Bank

OneUnited Bank, the nation’s largest Black-owned bank and FDIC insured, understands we have to focus on money and technology to close the racial wealth gap. With your support, by simply opening and actively using a OneUnited Bank account, we will continue to accomplish our mission!

    I have tired, unsuccessfully, to apply for a loan with One United for several years. Most recently was when the Black Bank Matters push was being introduced, during the summer of 2016. A reply to my request for communication mentioned the Los Angeles office was very busy establishing new accounts from the overwhelming response to the Black Bank Matters request. If I can speak with someone in the main office of United One Bank I'd like to see if I, my partners and family can do real estate business with One United Bank [email protected]
    November 10, 2016 Reply
  • Alton D. Walden III
    This message has inspired me and touched my heart. I'm very proud to hear that this bank; has a desire to carry out the legacy of our ancestors. I'm also reassured that I've chosen the correct bank.
    November 10, 2016 Reply
  • Dorothea swanson
    I m interested in banking with a black bank owner l currently live in Stl mo are there any my state
    November 10, 2016 Reply
  • Emna West
    This really seems like a wonderful company to look into Just reading all that you offer caught my eyes because we are never given a fair chance it we don't have good credit are the funds to use when we need them.I like what I have read so far.please keep me posted.
    November 11, 2016 Reply
  • Deborah
    This article was very informative I have been thinking for the longest to put my money into a black Owen bank
    November 13, 2016 Reply
  • Robin Edwards
    How do I sign up for the checking account? Are the accounts strictly online? If not , where are the brick and martar sites located.
    November 15, 2016 Reply
  • Dwayne Mahon
    I've been making with other institutions all of my banking life which is roughly 25 years. It's the first time any advertisement of a bank really appeal to me.
    November 23, 2016 Reply
  • Shy Burgess
    I would like to open a savings account
    November 28, 2016 Reply
  • Zoe Walker
    I am interested in opening a Trust Account. Can this type of account be opened online?
    November 28, 2016 Reply
  • Deshon-Anori Oliver
    I think what your doiing is great. Right now im with Chase but in a couple months i think imma switch obe united. I live in Arizona so ill probably be banking online
    November 29, 2016 Reply
  • M Burns
    Do you offer and IRA that I can roll my money into?
    April 18, 2017 Reply
  • Stephen Bruce
    I believe that a huge part of the problem is that most Blacks, particularly we American Blacks, are simply unknowledgeable of where we can find Black-owned financial institutions. Based on my own experience, until now, I'd never have known there were locations of Black owned banks near me. Otherwise, I'd have come here or to a similar institution for my banking needs years ago while my finances and credit situation(s) were far more abundant and stable. I'm certain that if the information regarding Black-owned and operated financial institutions were more widely available, we Blacks at all socioeconomic levels would support our banks! I think it is way past time that we rebuild and expand our collective communities' wealth!
    April 25, 2017 Reply

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