Black-Owned Banks in America: A State-by-State List

History of Black-Owned Banks

The first Black-owned banks were founded to provide economic opportunities and financial services to Black communities that were excluded from mainstream banking. A bank is considered Black-owned if 51% or more of its voting stock is owned by Black Americans who are U.S. citizens or permanent residents.

Capital Savings Bank, the first Black-owned bank, opened on October 17, 1888, in Washington, D.C. Just a few months earlier, True Reformers Bank had become the first Black-owned bank to receive a charter, and officially opened its doors in April 1889 as the second black-owned bank.

By 1934, there were 134 Black-owned banks, but only nine survived the Great Depression. The number of Black-owned banks grew again in the 1970s to around 50, but the savings and loan crisis of the 1980s reduced that number to 27. Today, only 21 Black-owned banks remain. Although few in number, these banks remain crucial for supporting economic growth and opportunities in Black communities.

While there are relatively few Black-owned banks, Black-owned credit unions have a stronger presence, with over 200 currently operating across the country. Black-owned credit unions offer services like checking and savings accounts, affordable loans and financial education. Because they focus on serving their members, credit unions can offer lower fees, better interest rates, and a more personalized approach to financial services.

Black-Owned Banks in America by State

Digital Banking Platforms

Emerging Black-owned digital platforms are using technology to offer accessible financial solutions, such as mobile banking and digital payments. These companies focus on the specific needs of Black communities and offer alternatives to traditional banking systems. Because they're digital, these platforms offer services that aren't limited by location.

• Greenwood
• MoCaFi Financial Services

The Importance of Black-Owned Banks

Black-owned banks play a vital role in meeting the needs of underserved Black communities by providing fair access to banking services, credit and capital. These banks help Black Americans start and grow small businesses, create local jobs and keep money circulating within Black communities, promoting economic growth and opportunity.

By offering fair access to affordable alternatives, Black-owned banks help minority groups avoid expensive, predatory options like payday loans and check-cashing services. They provide a trusted alternative to banks with a history of discriminatory practices, providing equal access to credit and financial services to all customers.

The Bottom Line

While less than 1% of all banks are Black-owned, these institutions continue to play an important role in supporting Black communities. Supporting Black-owned banks and credit unions helps create more opportunities for homeownership, business growth and wealth-building in Black communities.

When you're choosing a bank, consider its financial products, services and fees to be sure the bank meets your needs. Look for the bank's involvement in community development and local initiatives to select one that aligns with your values and supports community growth.