Digital bank designed for Black and Latino communities gets USD 40 mln

Thursday 25 March 2021 12:21 CET | News

US-based Greenwood, a digital banking startup designed for Black and Latino consumers and businesses, has raised USD 40 million from a host of US financial institutions.

These included Truist Financial, JPMorgan Chase & Co, Bank of America, Wells Fargo, and Citigroup. PNC Financial Services Group, Mastercard, Visa, FIS, Banco Popular, as well as several venture capital firms such as SoftBank’s Opportunity Fund, also participated in the round.

Greenwood was created to provide online banking services to help close the wealth gap faced by Black and Latino communities in the US. Greenwood is one of several digital banks that have emerged over the past year focused on consumers and businesses that have traditionally been underserved by the mainstream financial sector. Other online banking startups include First Boulevard, Daylight and Cheese.

The startup aims to use the cash injection to build the business, with plans to launch its first products this summer. It plans to offer services such as non-predatory loans, as well as the ability for customers to round up purchases and donate what they save to organisations aimed at advancing their communities.

Founded by entrepreneur Glover, alongside Civil Rights leader Andrew J. Young and rapper and activist Michael ‘Killer Mike’ Render, Greenwood has signed up more than 500,000 users to its waitlist since being announced, according to Reuters.

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Keywords: digital banking, financial inclusion, lending, funding, Visa, Citi
Categories: Banking & Fintech
Countries: United States
This article is part of category

Banking & Fintech