A Brief History: The First Black-Owned Bank
The first Black-owned bank in the United States was True Reformers Bank, founded in 1888 in Richmond, Virginia, by Rev. William Washington Browne, a formerly enslaved man and leader of the Grand Fountain United Order of True Reformers.
Browne envisioned a financial institution where African Americans could safely store money, buy property, and build businesses in a post-Reconstruction era when racial discrimination in banking was rampant.
According to the Federal Reserve’s historical archives, True Reformers Bank opened its doors on March 2, 1889, becoming the first chartered Black-owned bank in U.S. history. It offered savings accounts, mortgages, and loans to Black families who were excluded from white-owned institutions.
Though it closed in 1910 after a financial scandal, the bank laid the foundation for others like The St. Luke Penny Savings Bank (1903), founded by Maggie Lena Walker, the first Black woman to charter and serve as president of a bank in the U.S.
“These early institutions were not just banks — they were pillars of empowerment,” says Dr. Amara Enyia, policy and community advocate. “They circulated Black wealth within the community when no one else would.”
A Brief History: The First Black-Owned Bank
Richmond, Virginia, by Rev. William Washington Browne, a formerly enslaved man and leader of the Grand Fountain United Order of True Reformers.
Browne envisioned a financial institution where African Americans could safely store money, buy property, and build businesses in a post-Reconstruction era when racial discrimination in banking was rampant.
According to the Federal Reserve’s historical archives, True Reformers Bank opened its doors on March 2, 1889, becoming the first chartered Black-owned bank in U.S. history. It offered savings accounts, mortgages, and loans to Black families who were excluded from white-owned institutions.
Though it closed in 1910 after a financial scandal, the bank laid the foundation for others like The St. Luke Penny Savings Bank (1903), founded by Maggie Lena Walker, the first Black woman to charter and serve as president of a bank in the U.S.
“These early institutions were not just banks — they were pillars of empowerment,” says Dr. Amara Enyia, policy and community advocate. “They circulated Black wealth within the community when no one else would.”
Why Black-Owned Banks Matter Today
Despite progress, financial inequality remains a challenge. A 2024 FDIC report shows that Black households are nearly five times more likely to be unbanked than white households.
Black-owned banks play a critical role in bridging this gap. They provide financial services to underbanked neighborhoods, support small business lending, and reinvest directly in Black communities.
“When you deposit money in a Black-owned bank, that money is used to fund Black businesses, churches, and schools,” explains Kim Saunders, CEO of the National Bankers Association. “It’s a cycle of empowerment that strengthens our economic base.”
Black-owned banks also help fight predatory lending and promote financial literacy, offering education programs that teach budgeting, saving, and home ownership.
Top 5 Black-Owned Banks (2025)
These are some of the largest and most trusted Black-owned banks in America today — all federally insured and open to online applicants nationwide.
| Bank Name | Location | Specialties | How to Open an Account |
|---|---|---|---|
| OneUnited Bank | Boston, MA | Largest Black-owned digital bank; offers personal & business accounts | Visit oneunited.com. Requires ID, SSN, and a minimum deposit of $25. |
| Liberty Bank & Trust | New Orleans, LA | Mortgage & business loans, community reinvestment | Go to libertybank.net. Requires ID, SSN, proof of address, and $50 deposit. |
| Industrial Bank | Washington, D.C. | 90+ years of service; focuses on small business growth | Apply at industrial-bank.com. Requires valid ID and minimum deposit of $50. |
| Carver Federal Savings Bank | New York, NY | Focuses on financial literacy & affordable housing | Open an account at carverbank.com. ID and $100 opening deposit required. |
| Citizens Trust Bank | Atlanta, GA | Credit cards, auto loans, and personal banking | Apply online at ctbconnect.com. Must be 18+, provide ID & SSN, and deposit $25–$100. |
How to Support and Get Involved
- Open an account – Even a savings account helps circulate money within Black communities.
- Encourage others – Share your experience or recommend these banks to friends and family.
- Invest – Some institutions offer community investment programs or partnerships for entrepreneurs.
- Learn – Attend webinars or workshops hosted by Black-owned banks on financial literacy and wealth building.
“Economic freedom starts with where you bank,” says Kevin Cohee, Chairman and CEO of OneUnited Bank. “When we bank Black, we build Black wealth.”
THE BLK SPARROW 