Michael Render, the rapper and activist better known as Killer Mike, has been saying the same thing for years: America needs Black banks. But after George Floyd was killed by police in Minneapolis, Render is issuing another plea on behalf of the few Black-owned banks still standing. Once again, he’s urging fans to #BankBlack.
The campaign has worked—at least on the small, often precarious scale of Black-owned banks. The largest one, OneUnited Bank in Boston, quickly attracted $50 million of new deposits. Yet even with that additional money, OneUnited is only an asterisk in the wider banking industry. JPMorgan Chase & Co. has more than 150 branches that are each bigger than all of OneUnited.
While Wall Street behemoths may be too big to fail, many Black-owned banks have proven too small to succeed. Two decades ago, 48 were open for business. Today there are just 21. Since the 2008 financial crisis, as the big banks have gotten $2 trillion bigger, the combined assets of Black-owned banks have actually declined.
Amid the nation’s reckoning over race, a pivotal moment is arriving for Black-owned banks, in the form of the #BankBlack movement Render helped set in motion in 2016. The question is whether those lenders can push back against the national giants that dominate their industry and pull the financial levers in most Black communities. “The best way to punish a wicked system within capitalism is to use capital, your dollar” to show that “systemic racism is bad for money, it’s bad for business,” says Render, one-half of the rap duo Run the Jewels.
Denne historien er fra August 10, 2020-utgaven av Bloomberg Businessweek.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent ? Logg på
Denne historien er fra August 10, 2020-utgaven av Bloomberg Businessweek.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent? Logg på
Instagram's Founders Say It's Time for a New Social App
The rise of AI and the fall of Twitter could create opportunities for upstarts
Running in Circles
A subscription running shoe program aims to fight footwear waste
What I Learned Working at a Hawaiien Mega-Resort
Nine wild secrets from the staff at Turtle Bay, who have to manage everyone from haughty honeymooners to go-go-dancing golfers.
How Noma Will Blossom In Kyoto
The best restaurant in the world just began its second pop-up in Japan. Here's what's cooking
The Last-Mover Problem
A startup called Sennder is trying to bring an extremely tech-resistant industry into the age of apps
Tick Tock, TikTok
The US thinks the Chinese-owned social media app is a major national security risk. TikTok is running out of ways to avoid a ban
Cleaner Clothing Dye, Made From Bacteria
A UK company produces colors with less water than conventional methods and no toxic chemicals
Pumping Heat in Hamburg
The German port city plans to store hot water underground and bring it up to heat homes in the winter
Sustainability: Calamari's Climate Edge
Squid's ability to flourish in warmer waters makes it fitting for a diet for the changing environment
New Money, New Problems
In Naples, an influx of wealthy is displacing out-of-towners lower-income workers