The Race to Court Black Banking Customers Proves Theres Money in Equality
Turn your home into a smart home in just minutes with an Amazon smart lighting bundle set every possible mood with over sixteen million light colors to choose from or control the lights in your home with the sound of Your Voice. Just say Alexa turn on the lights learn more at Amazon dot com slash B W daily. Are. From wondering I'm David Brown and this is business wars on this Tuesday October twentieth this summer civil rights protests may have quieted but the focus on improving banking opportunities for people of Color is still going strong earlier this month the new majority black and Latte necks owned and operated digital bank called Greenwood was launched by bounce TV founder Ryan Glover in rapper slash activist Michael Render better known as killer Mike within hours of the bank's website going live render told CNN that Greenwood had quote tens of thousands of applications and it doesn't even open until January. Greenwood is named for the Tulsa Oklahoma community known as black. Wall. Street, in one, thousand, nine, hundred, eighty, one white rioters destroyed the thriving community but the new digital bank is committed to reversing the damage of such events. Its commitment to black and Latin next communities is woven throughout its business model. For every approved account Greenwood will donate the equivalent of the cost of five meals to an organization called gooder which targets food insecurity at. Your Greenwood Debit Card to the Greenwood gives back program, and you can choose to have your purchases rounded up to the next dollar and to direct your quote change to go to the N. Double Acp United Negro College Fund or Gooder, and each month. The bank will grant ten thousand dollars to a black or Latin X owned small business. The bank has roughly three million dollars in seed money, Angel Investors, and an open market CNBC reported. That black owned banks flourished in the nineteen fifties and sixties but in the two thousands, the number of black owned financial institutions declined by more than fifty percent leaving roughly twenty black owned banks in the US and the only one that manages more than a billion dollars doesn't actually exist yet city I bank of DC and Broadway Federal Bank or in the process of merging together the as yet unnamed entity will have combined assets of more. Than a billion dollars legacy are focusing on underserved communities to the same day that Greenwood launched its website J. P. Morgan Chase announced a thirty billion dollar commitment to address wealth inequality. The company will make a combination of loans, investments and donations over the next five years to help underserved communities especially, black and Latte. Next communities CNBC reports that most of the money is tied to housing investing in personal mortgages and financing low income housing developments. Research shows that this type of investment is good for the economy and good for banks a recent report for management consulting firm McKinsey. Banks quote exclusionary policies and strategies hurt the financial wellbeing of people of color which hurts the economy as a whole today nearly half of black households or unbagged or under banked according to the FDIC over a lifetime. The Brookings Institution estimates that being unbagged can cost nearly forty thousand dollars in fees. The bright side is that providing financial services to underserved communities can revive local economies and it's good for banks to Mackenzie estimates that financial institution stand to gain two billion dollars a year. If Black Americans had the same access to financial products as white Americans, if black Americans had that access and the wealth gap also closed, well, banks could be raking in up to sixty billion dollars more in annual revenue from. Black customers. So, while ensuring that black and Latte next customers have the banking services they need to help them. Build wealth seems like a feel good mood providing those services holds its own for financial rewards for the banks to. Bottom. Line. There's more money inequality. A much bigger payoff for everyone. From. Wondering, this is business workday subscribe on Apple podcasts spotify the wonder after wherever you're listening right now. Join one reflection the wondering react to listen at three. I'm your host David Brown. This episode was written by Gwen Moran Reduced by Elaine Appleton. Edited. By. Important. Are Executive Producers Marshal Louis created by. Hernan Lopez. I'm always looking for ways to make my life easier. How about you? With an Amazon Smart Lighting Bundle I was able to turn my home into a smart home just minutes all I had to do is connect my new smart bulb to the echo dot and I was all set. 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