Black-Owned Banks Aim to Uplift Underserved Communities

A state-by-state guide to supporting Black-owned financial institutions in America

Apr. 12, 2026 at 11:27am

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A photorealistic studio still life featuring a stack of gold coins, a calculator, and a gavel arranged on a clean, monochromatic background, symbolizing the financial inequalities and systemic barriers faced by Black communities, as well as the power of supporting Black-owned banks to drive economic empowerment.A conceptual still life highlighting the importance of supporting Black-owned banks to help close the persistent racial wealth gap in America.Indianapolis Today

Black-owned banks have emerged across the U.S. to provide economic security for disenfranchised Black communities that have long been underserved by major financial institutions. According to the Federal Reserve, Black people are twice as likely to be denied credit compared to their white counterparts, a discriminatory practice known as redlining that has contributed to wealth disparities. This guide highlights the dwindling number of Black-owned banks and the importance of supporting these community-focused institutions to help build generational wealth.

Why it matters

Black-owned banks play a vital role in addressing systemic inequalities in the financial system. By depositing funds in these institutions, customers empower them to lend more to Black-owned businesses, homeowners, and nonprofits, creating opportunities for employment, mentorship, and economic advancement in underserved communities. Supporting Black-owned banks is a tangible way for allies to help close the persistent racial wealth gap.

The details

According to FDIC data, only 23 out of 5,400 insured financial institutions in the U.S. were owned and operated by Black people as of 2018. The number of Black-owned banks has declined by more than 50% over the past two decades, with the 2008 financial crisis particularly damaging to the income and employment of Black Americans. Black-owned banks typically have far fewer assets compared to major banks, with the largest, OneUnited, managing around $625 million compared to Bank of America's $2.5 trillion.

  • The first Black-owned bank in America, True Reformers Bank, was founded in 1888 by Rev. William Washington Browne, a former slave and Union Army officer.
  • In 1910, True Reformers Bank was officially ordered to close by Virginia's State Corporation Commission after its new president failed to properly manage the bank's branches.

The players

Rev. William Washington Browne

A former slave and Union Army officer from Georgia who founded the first Black-owned bank in America, True Reformers Bank, in 1888.

Rev. William Lee Taylor

The new president of True Reformers Bank who failed to properly manage and regulate the bank's branches, leading to its closure in 1910.

OneUnited Bank

The largest Black-owned bank in the U.S., managing around $625 million in assets.

Bank of America

A major banking institution that manages nearly $2.5 trillion in assets, dwarfing the size of Black-owned banks.

Federal Reserve

The central banking system of the United States, which has found that Black people are twice as likely to be denied credit compared to their white counterparts.

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What’s next

Readers can find a comprehensive state-by-state list of Black-owned banks and credit unions on the custommapposter.com website to support these community-focused financial institutions.

The takeaway

By switching to a Black-owned bank, customers can help level the playing field for Black consumers who have been historically underserved by the financial system and contribute to building generational wealth within the African American community.