Now is the time to invest in black-owned banks
In the past two weeks, millions of dollars were transferred from the bank accounts of startups and investors housed in the collapsed Silicon Valley Bank to the JPMorgans, Brexes and Wise of the world. As founders and investors continue to look for new places to park their money, it is essential to view this time as an opportunity to start doing business with some of the few black-owned banks.
Digitally, there’s Intrepid, founded by Collin Thompson, which works exclusively with global remote companies and teams. Thompson told TechCrunch+ that his company’s goal is to become a trusted partner for founders, especially those impacted by SVB’s collapse.
Intrepid offers similar services to Brex, in addition to more specialized support, like all-in-one HR tools. Following the SVB crash, Intrepid implemented services such as the Federal Deposit Insurance Corporation’s higher insurance and sweep accounts. To create insurance beyond the typical FDIC-backed $250,000, Thompson said he is creating a new deposit network product with his banking partners, allowing his company to set up multiple deposit accounts. within the limit assured by the FDIC and allowing customers to access these accounts through a single application. . Intrepid also provides social resources, such as presentations and events, for those looking to grow their business networks.
“Given our diverse backgrounds, this informs how we manage risk, what types of clients we accept and how we serve,” Thompson said. “Our interests, experiences and character guide us, and this will impact the types of customers we attract. We believe that every customer, regardless of background or identity, deserves to have a financial partner they can trust and rely on, and we’re here to provide that.
There are also physical black banks, such as Unity National Bank, currently the only black-owned bank in the state of Texas, which has a branch in Atlanta; Liberty Bank, which has branches in nine states, including Louisiana; and OneUnited, which is based in Massachusetts with branches in Los Angeles, Miami and Boston.
Many black-owned brick-and-mortar banks are based in the southern United States, matching the latest pattern of corporate migration to states such as Georgia, Texas and Florida. Although these banks do not have many branches, they could still be important when considering financial diversification.