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May 31
2007
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Black banks are dyingPosted by gcuse03champs in Untagged |
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20 years ago there were over 50 certified Black owned banks in the US, now there are only 30. Ironically many of these banks are failing because they abandoned disadvantaged communities while white owned banks did not??????? Read the entire story by clicking the link below:
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In the "good old days" when we are held captive in segregated Black communities, Black-owned banks could survive by "serving the community." In the post-civil rights era, unfortunately, these banks could not follow their Black customers to all of the suburbs where they were scattered. Nor could thier former customers afford to travel to a single location to do business. The advent of branch banking, and ATM's put the nails in the coffins. And therefore, except where there are large concentrations of Black populations, these banks suffer ad die. They even struggle in majority Black communities, because they cannot keep up with the "services" that banking clients require -- online chicking, bill payment, credit cards, and 24/7 access.
What those who criticize these banks for "abandoning their disadvantaged cmmunities" don't understand is that banks thrive on Corporate clients who mke very large deposits and maintain very large accounts that provide the foundation for consumer products and services. They have "borrowing power" within the finance community based on this large cash flow. The banks haven't abandoned their communities. They don't have the financial foundation to "serve" declining communities of people with high credit risk, and low incomes. The banks must diversify their client base to grow from "community banks" to mainsream banks to compete. Without such a growth strategy, the clients tey seek to serve cannot support ther existence, nor can they serve what remains of the "community" that spawned their existence.
Thuso