Why Choose a Minority Owned Bank or Credit Union?

In an era of social justice and equity, many consumers want to support minority-owned banks and credit unions. These financial institutions can provide unique community benefits and valuable services.

What Are Minority Depository Institutions?

A minority depository institution (MDI) is a federally insured bank or credit union where 51% or more of the stock is owned by racial or ethnic minorities.

Some common minority groups represented include:

African Americans
Native Americans
Hispanics
Asians -Pacific Islanders

There are over 140 active MDIs in the United States today. Most are smaller community banks or credit unions that serve urban neighborhoods and rural areas.

Benefits of Banking at a Minority Institution

Here are some of the top reasons to choose a minority owned bank or credit union for your financial needs:

Promote Racial Equity and Inclusion

Banking with an MDI supports their growth and longevity. This enables them to better serve and uplift minority communities through economic opportunity and resources.

Local Focus on Underserved Areas

Many MDIs operate in low-income urban neighborhoods and rural counties that lack adequate financial services. Your accounts strengthen their lending power.

Culturally Familiar Experience

Minority institutions understand the nuanced needs of their communities. They provide a welcoming banking environment where diverse consumers feel comfortable.

Reinvest in the Community

Unlike big banks, MDIs channel deposits back into local families and small businesses through lending programs. This stimulates economic activity.

Support Small Business Growth

Minority banks play a crucial role in funding small businesses in minority communities. They offer better loan approval rates than large banks.

Alternative to Predatory Lenders

Your deposits at MDIs support fair loan products that provide better alternatives than predatory payday lenders and check cashing services.

Preserve Cultural Identities

Minority institutions promote financial literacy and empowerment rooted in the shared values and backgrounds of their customers.

Services Offered by Minority Banks and Credit Unions

Minority depository institutions offer similar services to traditional banks and credit unions. Here are some you can expect:

Checking and savings accounts
Debit/ATM cards
Online and mobile banking
Bill pay
CDs
Money market accounts
IRA accounts
Personal loans
Mortgage loans
Auto loans
Credit cards
Business banking
Financial planning

However, they especially shine with services tailored to their communities, like:

Multilingual services
First-time homebuyer programs
Small business loans
Credit restoration loans
Low or no fee accounts
Extended hours and weekend banking

Finding the Right Minority Institution for You

When selecting a minority owned bank or credit union, consider these tips:

Check the Ownership

Confirm at least 51% is owned by racial or ethnic minorities. The institution should transparently share details on leadership and investors.

Review Community Commitment

Look for banks and credit unions that expressly serve minorities and underserved groups through hiring, outreach, products, and services.

Compare Location and Accessibility

Are there branches or ATMs conveniently located near where you live, work, and spend time? Can you bank digitally?

Evaluate Account Features

Assess checking yields, savings rates, fees, minimums, and account terms against competitors. Look for no-fee and rewards offerings.

Research Lending Opportunities

Ask about loans and financing for your needs, like small business, auto, home, and personal lending. See if they offer advantages like lower qualifying barriers.

Consider Credit Union Membership

If you qualify to join the credit union based on geography, employer, or association, you can access excellent rates and service.

Top Minority Owned Banks and Credit Unions

Here are some of the top rated minority depository institutions across the United States:

Industrial Bank

One of the oldest minority-owned banks, founded in 1934 to serve the African-American community in Washington DC. It now operates branches in DC, Maryland, Virginia and New York.

Liberty Bank

The largest and highest capitalized African American owned bank with a focus on residential lending and small business financing. Based in New Orleans.

OneUnited Bank

The largest African American owned bank which promotes community development and Black empowerment. Digital bank available nationwide.

Native American Bank

Focuses on enhancing economic opportunity in Native American communities. Based in Colorado with customers nationwide.

Asian Bank

Works to empower Asian business owners and communities through SBA lending, commercial banking, and wealth management. Locations on the West Coast.

CDC Federal Credit Union

A Hispanic American owned credit union serving Central and Southern California with accounts tailored to Hispanic and immigrant communities.

Broadway Federal Bank

One of the leading African American banks on the West Coast, serving CA for over 70 years with a focus on urban revitalization in minority neighborhoods.

Joining the Movements to Support Minority Banks

By shifting your accounts to minority-owned institutions, you provide capital resources that directly uplift diverse communities through economic opportunity. It also signals to the larger finance industry the strong demand for equitable and socially-conscious banking practices. Discover an MDI aligned with your values and needs, and become part of the collective effort to close racial wealth gaps by empowering minority banks and credit unions. Your deposits can make a real local impact each day.