African Americans without bank accounts are disconnected from the financial services they so desperately need to move ahead, including attaining mortgages and business loans. All to often, African Americans experience job and financial loss and are turned down by mainstream banks when they apply for loans and mortgages. Even when their credentials are comparable to individuals who are approved for both, studies show that blacks do not receive comparable rates and services. In the event a black-owned bank is unable to provide a loan, they offer other financial products to help rebuild credit such as a credit card or second chance checking account.
Black owned banks are mostly located in African American communities and they usually do aid and assist the community as a whole. Right now, blacks spend a fraction (2-3%) of their dollars with local black owned businesses and purchase the lion’s share of their goods and services (97-98%) elsewhere. Keeping more money in the black community will go a long way to create wealth and open the door to greater opportunities in areas that are financially distressed.
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