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These Black-Owned Banks Just Received Millions To Help Serve Underbanked Communities

These Black-Owned Banks Just Received Millions To Help Serve Underbanked Communities
Young African-American woman using her bank card at the ATM in the evening

Just 16% of Americans are considered to be “underbanked,” but 27% of Black people are underbanked. This refers to their lack of savings or checking accounts and dependency on predatory payday lenders, and currency exchanges for their money services.

KeyBank is aiming to shift that from the inside out.

The Ohio-based financial institution recently announced its placement of $50 million in deposits with six Community Development Financial Institutions (CDFIs) and Minority Depository Institutions (MDIs), including four Black-owned banks. This is an effort to to “help clients and communities thrive,” according to the organization.

The institutions that received funds include Adelphi Bank – Columbus, OH, Carver Federal Savings – Harlem, NY, First Independence Bank – Detroit, MI, Legacy Bank – Murrieta, CA, OneUnited Bank – Boston, MA and Native American Bank – Denver, CO.

“Our country’s CDFIs and MDIs are vital to providing economic opportunity in underserved and low-income communities,” said Chris Gorman, Chairman and CEO of KeyBank in a release. “Our support of the CDFIs and MDIs is part of our ongoing commitment to address social justice and racial equity in the communities we so proudly serve.”

“KeyBank is demonstrating what a more inclusive financial services industry looks like by fulfilling their overall $50 million commitment towards various Minority Depository Institutions in America,” said Kenneth Kelly, Chairman & CEO of First Independence Bank. “This support allows various MDIs to continue their concerted effort to expand their reach and expand relationships into partnerships within our industry. I am elated that KeyBank shares the same vision that all leaders can better impact communities we serve when we collaborate to broaden the financial quality of life for all.”

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