Two of America's oldest Black-owned banks, Optus Bank and Mechanics & Farmers Bank, have signed an agreement to join forces, a move that could reshape access to capital in Black communities. Together, they'd create the largest Black-owned bank in the country. Here's why that's crucial.
North Carolina’s oldest Black bank, Mechanics & Farmers, was founded in 1907. Optus opened its doors in 1921. Both followed in the footsteps of some of the country's earliest Black banks, like Freedman's Savings Bank. Many of these new banks opened after the Civil War, when white-owned banks refused to open accounts for Black people.
Virginia had Maggie Walker's St.Luke Penny Savings Bank. Washington, D.C. had the Capital Savings Bank, opened in 1888. These banks and others like them became safe spaces for Black communities to obtain banking services and financial education.
According to the Federal Reserve, nearly half of Black households were underbanked or completely unbanked in 2019. A report from 2024 showed that 39% of Black-owned businesses had been denied loans. The racial wealth gap is alive and well, but we need Black banks to help close it.
Let this Black bank merger be a reminder: When we work together, we can go farther. Look to your left and right to see who in your community is building something similar. How can you come together and win?