The solution from their perspectivesĪt the Senate Banking Committee hearing this week lawmakers want to know if the U.S. Known Holdings is a financial services platform led by Black, Latinx and Asian people. "A big part of banking is confidence," Ushir said. He says the biggest problem in the banking sector right now is "fear." Ushir Shah, co-founder of Known Holdings, said his goal is to increase capital allocation to people of color. Elam says that in the post-George Floyd environment, many have realized that these banks are key to closing the wealth gap.Įconomy 5 ways the fallout from the banking turmoil might affect you There are currently 20 Black owned banks in the nation. From 1888 to 1934, 134 Black banks were created to serve Black Americans. There has been a steep decline in the number of Black owned banks over the last two decades. But with looming financial instability in the banking sector, these community owned banks are vulnerable.Įlam said whenever there is an economic downturn, minority owned banks are hit hard and are often forced to close. The NBA advocates for its clients to have a voice in national banking conversation in an effort to close the racial wealth gap. "You are more likely to get approved for a mortgage, more likely to get approved for a small business loan if you have a minority bank branch sitting in your community." "If you are black, brown or immigrant, you are more likely to have access to financial services," Elam said. Nicole Elam, who manages the National Bankers Association (NBA), told Morning Edition that many people of color have been relying relied on minority-owned banks for years. Business How the collapse of Silicon Valley Bank affected one startup
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