ATLANTA–Greenwood, a fintech that is seeking to advance economic empowerment of minority and underserved communities and racial equity in financial services, has raised $40 million in funding, with investments from six of the seven largest U.S. banks and from two top payment technology companies.
Greenwood said it plans to feature best-in-class online banking services, innovative ways to support Latino and Black-owned banks and give-back programs focused on Black and Latino causes and businesses.
"We think it is critical that our actions live up to the promise of our name," said Glover, referring to Tulsa, Oklahoma's Greenwood District of the early 20th Century, which included the prosperous "Black Wall Street.”
Greenwood’s founders — including the entrepreneur Ryan Glover and the rapper and activist Michael Render, a.k.a. Killer Mike — said they are aiming to make services like checking accounts and loans more equitable.
Shu Nyatta, managing partner of SoftBank's Opportunity Fund, said, "Galvanizing a broad coalition of consumers and companies to close the racial equity gap is very closely aligned with our mission at the Opportunity Fund. We are enthusiastic supporters of what Greenwood is trying to accomplish."
The Statistics
Greenwood noted that Black and Latino customers are underserved by traditional banks, with nearly 17% of Black households and 14% of Latino households lacking basic financial services in 2017, the last year for which FDIC statistics are available, compared with 3% of white families.
Greenwood itself won’t hold deposits or make loans. Instead, it the business model calls for connecting customers with minority deposit institutions and community development financial institutions that will handle back-end tasks like underwriting loans.
Greenwood announced in October 2020 and already has signed up more than 500,000 community members.