The Freedom Bank of Finance was opened in 1969 by a group of Black businessmen in Portland, Oregon. They were assisted by another Black bank, Bank of Finance in Los Angeles. The number of Black-owned banks was growing.
Today, less than 1% of Federal Deposit Insurance Corporation approved banks are Black-owned. Why are there so few of these banks meant to benefit our finances?
The truth is that Black people have been segregated economically since America’s inception. We do not have the means and mechanisms of production to support a multitude of banks. Because of our lack of wealth, there will always be few Black-owned banks in our communities. So what's an alternative?
Black-owned banks are meant as a means to put the control of our money back into the hands of our people. But is this the best way to fight economic inequality in our society? We can build together and consider options outside of the capitalistic system of banking.
Perhaps a solidarity economy, where collective needs and liberation are put before profits, is another way forward. Our food, housing, education, all controlled by us. Instead of buying into capitalism we can truly invest into our people and bring us closer toward liberation.