Wells Fargo Fulfills Pledge To Invest $50 Million In Black-owned Banks

Wells Fargo has fulfilled the pledge it made last year to invest $50 million in Black-owned banking institutions.

In a press statement released yesterday, the company disclosed that it made equity-capital investments in three banks, namely: The Harbor Bank of Maryland, The Industrial Bank of Maryland, and the Industrial Bank of Washington, D.C. This accomplishes their commitment to invest $50 million in 13 black-owned banks, taking them approximately a year to complete. The commitment was announced on the 10th of March 2020.

This move by the bank was motivated by the need to close the large racial wealth gap in the United States. Banks are an important tool in the financial education and progress of communities and any investment made in them will trickle down to the rest of the community.

“We are pleased to announce our investments in the Harbor Bank of Maryland and Industrial Bank, bringing the total number of MDIs (Minority Depository Institutions) in which we’ve invested 13. We are a proud partner to all these banks as each serves as a cornerstone to the communities they serve,” said Gigi Dixon, head of External Engagement for Diverse Segments, Representation, and Inclusion at Wells Fargo.

Beyond providing monetary assistance to these banks, Wells Fargo has revealed that all 13 beneficiaries will get unrestricted access to expert knowledge on fields of finance, technology, and product development, in order to truly grow. Additionally, all 13 beneficiaries will be able to use all Well Fargo ATMs nationwide for free.

Just last week, it was announced that Wells Fargo was collaborating with the Black Economic Alliance Foundation to launch an Entrepreneur Fund.

The fund, which is worth $50 million will provide seed, start-up, and early-stage capital funding to businesses that are founded and led by Black entrepreneurs.

Wells Fargo, which was the world's largest bank by market cap in 2015, is currently the fourth-largest bank by total assets in the United States, and number 30 on the Fortune 500 list of the world's largest corporations by total revenue. 

The company claims to focus its social impact on building a sustainable, inclusive future for all by supporting housing affordability, small business growth, financial health, and a low-carbon economy.