Greenwood raises $40 million in Series A to provide banking services to the Black and Latinx communities

Greenwood has taken more steps in becoming the biggest digital banking platform for Black and Latinx communities in the U.S.

On Thursday, the digital bank announced that it had closed a $40 million Series A funding round, with participation from six of the seven largest banks and the top two payment companies in the United States, including Bank of America, PNC, Mastercard, Wells Fargo, Visa, and Truist. Other participants include FIS, a leading provider of technology solutions for merchants, banks, and capital market firms; Popular, the largest Hispanic-owned bank in the United States; venture capital firms TTV and SoftBank-backed SB Opportunity Fund and Lightspeed Ventures Partners. The group also included sports and entertainment companies like Quality Ventures, the private equity arms of sports media conglomerate Quality Control, and Alvin Kamara, All-Pro NFL running back.

The round was led by Truist Ventures, the corporate venture capital division of Truist Financial Corporation (NYSE: TFC). The investment firm is committed to advancing economic empowerment in underserved minority communities.

“Truist Ventures is helping to inspire and build better lives and communities by leading the Series A funding round for Greenwood’s innovative approach to building greater trust in banking within Black and Latino communities,” said Donta L. Wilson, chief digital and client experience officer at Truist Ventures. “In addition to the opportunity to work with and learn from this distinguished group of founders, our investment in Greenwood is reflective fof our purpose and commitment to advancing economic empowerment of minority and underserved communities.”

Chairman and co-founder of Greenwood Ryan Glover, in a press release said the money raised in the fund will be directed towards providing better digital banking services to underserved Black and Latinx communities. It aims to narrow the wealth gap between the white communities and communities of color.

“The net worth of a typical white family is nearly ten times greater than that of a Black family and eight times greater than that of a Latino family. This wealth gap is a curable injustice that requires collaboration,” Glover said.

“I am elated that many of the world’s top fintech companies have invested in Greenwood and join us in this mission. The backing of six of the top seven banks and the two largest payment technology companies is a testament to the contemporary influence of the Black and Latino community. We now are even better positioned to deliver the world-class services our customers deserve.”

Greenwood is committed to building a community focused on financial empowerment, as well as deliver a range of financial products and services.

About Greenwood

Greenwood is a digital banking platform created for Black and Latino businesses and individuals. It is partnered with FDIC-insured banks to provide customers with the best digital banking services and innovative ways to give back to the Black and Latinx communities. Greenwood was founded by Civil Rights leader Andrew J. Young, rapper and activist Michael “Killer Mike” Render, and founder of Bounce TV Network Ryan Glover.