Black-owned banks are banks that cater to serve African Americans more than other banks do. Their primary mission is to close the wealth gap in America. The wealth gap was a result of previous US policies that restricted African Americans from credit and banking services.
Black-owned banks connect those who have been denied banking services and loans to help Black-owned small businesses and Black homeowners, who are both denied loans more often than white borrowers.
What is a Black-Owned Bank?
A Black-owned bank is a for-profit banking institution where majority of stockholders or members of the board of directors are African American. These bank primarily serve Black communities, but anyone is able to join. Some companies, like Netflix, have begun depositing their funds in Black-owned banks as a way to support Black communities.
What is a Black-Owned Credit Union?
A Black-owned credit union is a not-for-profit banking institution where majority of stockholders or members of the board of directors are African American. Membership can be limited to a certain city or group, such as members of a predominantly Black church or employees at a historically Black college or university.
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.
Financial Institution |
Headquarters |
---|---|
Birmingham, AL |
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Mobile, AL |
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Los Angeles, CA |
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Washington, DC (branches also in MD, NJ, NY) |
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Washington, DC |
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Tallahassee, FL |
|
Atlanta, GA |
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Atlanta, GA |
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Atlanta, GA |
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Savannah, GA |
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Toccoa, GA |
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Chicago, IL |
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Chicago, IL |
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Baton Rouge, LA |
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New Orleans, LA (branches also in AL, IL, KS, KY, MI, MO, MS) |
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Baltimore, MD |
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Boston, MA (branches also in CA, FL) |
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Detroit, MI |
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Jackson, MS (branches also in AL, AR, LA, TN) |
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St. Louis, MO (branches also in IL) |
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New York, NY |
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Long Island City, NY |
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Durham, NC |
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Kinston, NC |
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Toledo, OH |
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Oklahoma City, OK |
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Philadelphia, PA |
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Pittsburgh, PA |
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Charleston, SC |
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Columbia, SC |
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West Columbia, SC |
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Memphis, TN |
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Nashville, TN |
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Arlington, TX |
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Houston, TX (branches also in GA) |
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Dallas, TX |
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Dallas, TX |
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South Chesterfield, VA |
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Milwaukee, WI |
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Greenwood (coming soon in 2021) |
Online only |
Online only |
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
Conclusion
Black-owned banks and credit unions are intentionally trying to help the Black community. They aim to provide financial services in underserved and low- to moderate-income areas.