Why Microsoft Is Investing In Black-Owned Banks

Big banks and corporations like Yelp, Netflix and Microsoft have announced major investments to Black-owned banks in recent years. Yet, Black banks are far from thriving. Americans who identify solely as Black or African American make up 13.4% of the U.S. population today, but less than 1% of all FDIC-insured banks are considered Black-owned. So how do Black-owned banks work and why is their survival so vital to the American economy? Watch the video find out. The number of Black-owned banks has dwindled immensely over the years. Between 1888 and 1934, there were 134 Black-owned banks to help the Black community. Today, there are only 20 Black-owned banks that qualify as Minority Depository Institutions, according to the Federal Deposit Insurance Corporation. “I think part of it has to do with the broader trend in the banking community,” said Michael Neal, senior research associate at the Urban Institute. “We’re seeing the number of banks overall declining and assets being concentrated, particula