America’s long history of racial discrimination in banking is exactly why Black-owned financial institutions exist, and why they’re still essential today.
At the end of the Civil War, President Abraham Lincoln created the Freedman’s Savings and Trust Company, also known as “Freedman’s Bank.” However, corruption rooted in racial discrimination resulted in thousands of newly-freed Black people losing their savings overnight. Thus, prompted the creation of Black-owned banks–places where our money, time, and business would be valued. The first, Capital Savings Bank in Washington, D.C., opened in 1888. Dozens more would follow.
Today, most Black-owned or Black-operated banks and credit unions are in the South—and their role is as urgent as ever. On his website, billionaire philanthropist Robert F. Smith writes, “Historically, these institutions have provided loans and financing to Black Americans who have often been excluded from wealth-generating financial tools like mortgages and business loans at other banking institutions.” He notes, however, that many Black communities remain underbanked.
From historic names to modern-day leaders, here are some of the institutions keeping our dollars circulating in our communities.
District of Columbia
Transportation Federal Credit Union offers accessible financial services and education.
Industrial Bank offers checking and savings accounts, IRAs, CDs, home loans, online and mobile banking, credit cards, and commercial loans, plus free financial literacy courses and community service programs.
Andrews Federal Credit Union provides a wide range of financial products with strong community engagement.
City First Bank has mission-driven lending and services tailored to local needs.
Transit Employees Federal Credit Union is focused on transportation workers with member-first programs.
Wisconsin
Columbia Savings and Loan Association i based in Milwaukee, specializing in CDs, IRAs, home loans, and church loans.
Tennessee
Citizens Savings Bank and Trust offers full-service banking with deep local roots.
Hope Credit Union provides funding for affordable housing, healthy-food programs, and leadership training opportunities.
Liberty Bank sponsors local neighborhood sports and supports affordable housing in Memphis.
Pennsylvania
Democracy Federal Credit Union offers accessible financial products with a focus on member needs.
Tioga-Franklin Savings Bank provides personal and business banking services.
United Bank of Philadelphia finances small businesses to spur job growth.
New York
Carver Federal Savings Bank is one of the largest Black-managed banks in the U.S.
Industrial Bank partners with Kasasa to offer higher interest rates.
Michigan
First Independence Bank established a millennial advisory board and sponsors youth basketball clinics and tournaments.
Liberty Bank sponsors neighborhood sports and provides affordable housing.
One Detroit Credit Union sponsors gift and food drives to support families in need.
Mississippi
Grand Bank for Savings partners with local nonprofit organizations through its Giving Back Program.
Hope Credit Union provides funding for affordable housing, healthy-food programs, and leadership training opportunities.