Black-owned banks historically have always played a significant role in the black community. With the fierce competition in the banking industry, are black-owned banks still the bank of choice in the black communty? Here are some other questions worth pondering:
- Do you currently use the financial services of a black-owned bank?
- Have you ever used a black-owned bank in the past?
- Are you aware of the services offered by black-owned banks? Do you find them to be competitive?
My thoughts
As I think about this subject, I am wondering just how much black-owned banks are needed. Before I continue, NO I am not suggesting that these banks just disappear (relax). Obviously someone is using these institutions otherwise they would not be in business. I’m just wondering what should our expectancy be for these institutions. Should we expect anything different than the service that many of us get from other banking institutions (And let’s be honest here. Incompetence, not racism make up a large percentage of the problems we face time to time at non-black-owned banks.)
Anytime someone mentions the words “black-owned bank” , we are oftentimes flooded with great pride followed by a conversation on how these institutions are so desperately needed to secure our financial independence. While all of this sounds good, to tell you the truth I do not know too many black folks who are willing to go out of their way to bank at these institutions. I’ll explain–
When black banks were first established, banks, like other places of business were located in a central location–a place were everybody conducted their daily business: Downtown. As cities grew and as business began to branch out into the outlining communities outside of the city limits, banks began to follow this trend by establishing a presence in these communities. Now, customers do not have to travel into the city for their banking services. While black-owned banks tend to operate in mostly black communities (surprise, surprise), in today’s world more and more blacks are now moving to the suburbs. As much as I wouldn’t mind doing my banking at a black-owned bank, to drive umpteen miles with traffic just is not practical. I know a lot of us would not say that openly because the way it sounds, but it is true. As long as the local bank is giving me good service, I’ll continue to do my banking with them.
Kicking around some possible solutions (What are your thoughts? Here are some of mine)
- I think that an increased ATM presence would help as long as they are located in main thoroughfares (malls, grocery stores, etc.)
- Actual branches should only be built in suburban areas where the black population is at least 45% (could that be lower?)
- Increase advertising
If you have any experiences with a black-owned bank, please share.
Related story: New owner to reshape black-owned Metro Bank
