Now is the time to invest in black-owned banks

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In the past For two weeks, millions of dollars were shuffled from bank accounts of startups and investors in the collapsed Silicon Valley Bank to the JPMorgans, Brexes, and Wises of the world. As founders and investors continue to look for new places to park their money, it is essential to view this moment as an opportunity to start banking some of the few Banks in black hands.

There is digital fearless, founded by Collin Thompson, which works exclusively with remote companies and global teams. Thompson told gotechbusiness.com+ that his company’s goal is to become a trusted partner to founders, especially those impacted by the SVB’s collapse.

Intrepid offers similar services to Brex, in addition to more specialized assistance, such as all-in-one HR tools. In the wake of SVB’s crash, Intrepid implemented services such as higher Federal Deposit Insurance Corporation insurance and sweep accounts. To create insurance beyond the typical $250,000 backed by the FDIC, Thompson said he is building a new deposit network product with his banking partners that will allow his company to create multiple deposit accounts within the FDIC-insured limit and give customers access. to those accounts through a single application. Intrepid also offers social resources, such as introductions and events, for those looking to grow their business network.

“Given our diverse backgrounds, this provides information about how we manage risk, what kind of clients we take on and how we serve,” said Thompson. “Our interests, experiences and character guide us, and this will influence the type of clients we attract. We believe that every client, regardless of background or identity, deserves to have a financial partner they can trust and rely on, and we are here to provide that.”

There are also physical black banks, such as Unity National Bank, currently the only black bank in the state of Texas, which has a branch in Atlanta; Liberty Bank, with offices in nine states, including Louisiana; and OneUnited, based in Massachusetts with offices in Los Angeles, Miami and Boston.

Many brick-and-mortar, black-owned banks are located in the southern US, consistent with the latest corporate migration pattern to states such as Georgia, Texas, and Florida. Although these banks don’t have many branches, they can still be important when considering financial diversification.