February is Black History Month, dedicated to celebrating the remarkable contributions of African Americans to American society, honouring the resilience and achievements of generations. Across various sectors, the vibrant legacy of the African American community is commemorated through films, music, museums and more, working towards meaningful change, promoting diversity and inclusivity.

Historically, banks and financial institutions have played a role in perpetuating inequalities in the USA, resulting in mistrust within African American communities. The financial sector has a profound impact on systemic racism and economic disparities. According to Forbes, Black Americans have less opportunity to build additional wealth through participation in the mainstream market for financial products and services. They are much less likely to invest in equities (34% compared to 61% of white households) or to have a retirement account (44% versus 65%). In addition, on a recent article, Brookings shared that only 44% of black individuals own a home, compared to nearly 73% of white individuals.  

In this context, the Global Alliance for Banking on Values (GABV) and its members are actively engaged in efforts to rebuild trust and foster inclusivity. Striving to create a more equitable society, GABV and its members work to address the root causes of mistrust and work towards a future where financial institutions are values-based and serve all communities with integrity and fairness. 

This February 2024, as the National Museum of African American History and Culture extends an invite to celebrate the Black people who have used art as their platform for social justice, we would like to honor the role of GABV member banks promoting values-based practices, diversity and inclusivity in the USA, as well as some key leaders amongst them. 

Some inspiring examples of GABV members taking action in the USA:

• In 2023, Southern Bancorp, a Community Development Financial Institution, built an expanded mortgage division to help deliver the opportunity of homeownership, with a particular focus on reaching Black and Hispanic prospective homebuyers.
  
  Darrin Williams, CEO, Southern Bancorp, Inc. : “The expansion of our mortgage business, with a particular focus on reaching Black and Hispanic prospective homebuyers, helps close an approximate 30-point homeownership gap these minority households face when compared to whitehouseholds.” Williams, who was recently re-appointed to the Federal Reserve Bank of St. Louis’ Little Rock Branch Board of Directors, also said in an interview with Insider that “Fighting against backlash against diversity, equity, and inclusion means moving forward and doing what we were founded to do.”
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• Tonita Webb, CEO of Verity Credit Union, Seattle, is the first woman and the first member of the BIPOC community to lead the credit union. Since Webb became CEO two years ago, Verity has surpassed 40,000 members for the first time in the credit union’s history. She remains an advocate to ensure that credit unions continue to serve the underserved and work cooperatively to build strong communities.
  
  In 2021, she was named a 2021 Women of Influence by Puget Sound Business Journal (CU Insight). “This win is for the other women leading positive change, for the Black woman or man who’s the only person of colour in their company, and for all of the little Black girls to see what’s possible”, she said in response to her win.
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• As the President and CEO of Amalgamated Bank, New York, Priscilla Sims Brown prioritizes providing affordable access to the banking system, supporting sustainability, social justice causes, and championing workers’ rights. Sims Brown is the first Black woman to lead Amalgamated Bank and is one of a few Black women CEOs in the banking industry.
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  She is a tireless advocate for racial equity. “We’re aligned with those in the system who seek to celebrate the good work that good people do. But we also recognize that system needs a major overhaul in order to protect the lives of Black people in this country”,  she stated in an interview with Ebony Magazine.
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• City First Bank and Broadway Financial Corp., in Washington DC, merged and created City First Bank, the largest Black-owned Bank in America. With more than USD 1 billion combined, the bank focuses on social impact banking and supporting underserved communities.
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  “We have all seen the compounding impacts from centuries of racial inequities in this country — social unrest, higher unemployment, poverty. Economic injustice is at the root of racial injustice. That’s why the work of MDIs and community deposit financial institutions are more important than ever; they are squarely focused on these inequities like getting capital to those who truly need it”, explains Brian E. Argrett, CEO of City First Bank.
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  Honoring the resilience and achievements of generations who faced adversity is at the heart of values-based banking. These are only a few examples of how some values-based banks in North America advocate and support African American Communities and financial inclusion. Learn more about these impactful stories and find others in our Resources section.