Six Black-owned banks receive funding from Well Fargo’s $50m MDI pledge
Wells Fargo has announced investments in six-African American Minority Depository Institutions (MDIs) to support its pledge made in March 2020 to invest up to $50 million in Black-owned banks.
Institutions that will receive the investments include: Broadway Federal Bank, Carver Federal Savings Bank, Citizens Savings Bank & Trust, Commonwealth National Bank, M&F Bank, and Optus Bank.
According to Afrotech, the banks will have access to a dedicated Wells Fargo relationship team that will provide product development, technological, and financial expertise in order to help each institution enhance and benefit their local community.
“These investments are designed to help the banks become stronger and more impactful to the minority communities they serve, which leads to economic revitalisation and job opportunities,” says vice-chairman of public affairs at Wells Fargo, Bill Daley.
“So many communities have suffered over the past year. MDIs need capital, but they can also benefit from access to other resources, and Wells Fargo is committed to building lasting, strategic relationships with these institutions in support of their goals.”
Financial commitments made by Wells Fargo will be in the form of critical equity capital, which is imperative to the MDIs’ ability to expand lending and deposit-taking capacity in their communities.
“The investment and support from Wells Fargo will allow us to substantially increase our impact on closing the racial wealth gap,” says Dominik Mjartan, president and CEO of Optus Bank.
“We are grateful and committed to ensuring that this capital helps drive transformational wealth-building opportunities for our communities and customers.”
Investments are designed to help the banks maintain their MDI status and are a part of the bank’s larger commitment to fostering an inclusive recovery for the institutions.