Visa cards are an integral part of modern life. But what is it about these plastic cards that make them so popular with people of color? Perhaps the answer lies in the way that Black Visa Cards operate.
What’s Special About Black Visa Cards?
For years, African American communities have been plagued by a lack of financial access and unbanked residents. The lack of access to financial services has several negative consequences, such as higher rates of unemployment, poverty, and debt.
To end this, many banks have begun to provide affordable financial services and bring social equity. For example, Kevin Cohee, the CEO of One United Bank offers a Black Visa Card that is designed to help black communities gain access to finance. Many such banks have also taken steps to diversify their customer base and increase the number of African American customers.
Why Do African American-Focused Banks Matter?
Black-owned banks are classified by the Federal Deposit Insurance Corporation as Minority Depository Institutions. In other words, these banks are owned by African Americans, whose ownership is 51% or more. While the majority of black-owned banks have very few resources to work with, they are still an important sector for the black community.
These banks focus on closing the racial wealth gap and creating economic opportunities for the underprivileged. They offer a wide range of financial services and aim to increase financial literacy in the coming years.
Why Should You Support These Banks?
While many people strive to uplift the community, not much support has been provided to these institutions. According to the Independent Banker, 70% of African Americans do not have access to banks near them. This, in turn, increases the charges for operating at other banks.
Additionally, as of 2021, there were only 42 black-owned banks or credit unions in the United States. The only way to stop any further decline is to support these banks and credit unions.
How to Support These Banks?
If you believe in equality and would like to support these banks, the best way is to do business with them. This can be done through owning accounts with them or becoming an equity holder. By doing this, you will be able to contribute to the growth of these banks and help to close the racial wealth gap.
Many minority communities need financial help. And these institutions can only survive with support from the community and others around them. If you would like to help these institutions, you can do so by spreading awareness and doing business with them.