3 replies to this topic

[markber]

Does it make financial sense to create a race-oriented online bank (see below)? Will it get any advantages in comparison with a regular bank?


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Former OneUnited exec begins launch of Net-based bank, BankBlackwell
Boston Business Journal
A former high-ranking executive at one of the nation's leading African-American banks announced today that he's received approval to launch what he says is the nation's first African-American Internet bank.


James Mundy, who until October 2003 was chief financial officer and chief operating officer at Boston's OneUnited Bank, said he's received permission from the U.S. Office of Thrift Supervision to launch BankBlackwell. The announcement was made in a press release.

The nascent bank, which hopes to open this summer, is targeting African-American households with incomes of $50,000 and greater. It also expects to serve faith-based institutions. Mundy will be president and chief executive officer.

A circular sent to investors indicates BankBlackwell hopes to raise $16.5 million in an initial public stock offering. Shares are expected to be priced at $10 each. The bank's organizers have committed to buy $860,000 of the new bank's stock The offering is expected to be complete by June 24, according to the offering circular.

source: http://boston.bizjou.../28/daily7.html

[scottjm]

Does this mean I can open up Bankwhitey, My slogan could be "We offer better rates because of less defaults" I just don't get why minorities can do things like Black only beauty pageants and Black award shows. Discrimination is wrong either way

[vivyip]

I have a question -- doesn't the fact that it's an internet bank kinda eliminate the race factor? By the time a person goes on the internet and uses internet banking...it's different.

I might understand if it's demographic and junk. (for example HSBC and Citibank branches in chiantowns and in NYC that have promotions geared toward a certain group of people) but race + internet bank doesn't make sense to me...

[ez2nve]

Does this mean I can open up Bankwhitey, My slogan could be "We offer better rates because of less defaults" I just don't get why minorities can do things like Black only beauty pageants and Black award shows. Discrimination is wrong either way

Scottjm....."........better rates because of less defaults"? This comment was uncalled for.

No personal attacks are allowed on ibankdesign.com. Moderator

In any case, if one can read the entry, it states that they're TARGETING african americans NOTdenying other races an account (which WOULD BE discrimination). It also stated that those "TARGETED" AA's are required to make $50k per yr, yet no one's focus is on that. Most banks do some sort of profiling how is this one any different? Salem Five Cents Bank only opens accounts for those with a certain credit score, as do other banks. Some banks require people to work for a certain business to obtain an account. Other banks require a person to stay in a certain state to have an account; however, this one overshadows the rest somehow? I dont see it.

Edited by moderator on 4/07/2005