Before even taking its first deposit, Greenwood, the digital banking service targeting Black and Latino individuals and business owners, has raised $40 million — only a few months after its launch.
Coming in to finance the new challenger bank are six of the seven largest U.S. Banks and the payment technology developers Mastercard and Visa.
That’s right, Bank of America, PNC, JPMorgan Chase, Wells Fargo, and Truist, are backing a bank co-founded by a man who declared, “I’m with the revolutionary. I’m with the radical policy,” when stumping for then Presidential candidate Sen. Bernie Sanders.
Joining the financial services giants in the round are FIS, a behind-the-scenes financial services tech developer; along with the venture capital firms TTV Capital, SoftBank Group’s SB Opportunity Fund, and Lightspeed Venture Partners. Sports investors Quality Control and All-Pro NFL running back Alvin Kamara also came in to finance the latest round.
Atlanta-based Greenwood was launched last October by a group that included former Atlanta mayor Andrew Young and Bounce TV founder, Ryan Glover.
“The net worth of a typical white family is nearly ten times greater than that of a Black family and eight times greater than that of a Latino family. This wealth gap is a curable injustice that requires collaboration,” said Glover, Chairman and Co-founder of Greenwood, in a statement. “The backing of six of the top seven banks and the two largest payment technology companies is a testament to the contemporary influence of the Black and Latino community. We now are even better positioned to deliver the world-class services our customers deserve.”
Named after the Greenwood district of Tulsa, Okla., which was known as the Black Wall Street before it was destroyed in a 1921 massacre, the digital bank promises to donate the equivalent of five free meals to an organization addressing food insecurity for every person who signs up to the bank. And every time a customer uses a Greenwood debit card, the bank will make a donation to either the United Negro College Fund, Goodr (an organization that addresses food insecurity) or the National Association for the Advancement of Colored People.
In addition, each month the bank will provide a $10,000 grant to a Black or Latinx small business owner that uses the company’s financial services.
“Truist Ventures is helping to inspire and build better lives and communities by leading the Series A funding round for Greenwood’s innovative approach to building greater trust in banking within Black and Latino communities,” said Truist Chief Digital and Client Experience Officer Dontá L. Wilson who oversees Truist Ventures, in a statement. “In addition to the opportunity to work with and learn from this distinguished group of founders, our investment in Greenwood is reflective of our purpose and commitment to advancing economic empowerment of minority and underserved communities.”
So far, 500,000 people have signed up for the wait list to bank with Greenwood.