CBA Shares How America’s Leading Banks Invest in Black Communities Through Housing and Financial Literacy

February 16, 2024

WASHINGTON, D.C. – This Black History Month, the Consumer Bankers Association (CBA) is proud to highlight the many ways in which America’s leading retail banks have worked to empower Black entrepreneurs and communities to build successful businesses and brighter futures, not just in February, but all year long.

The second installment of CBA’s Black History Month blog series profiles some of the initiatives from three members – Fifth Third Bank, Ally Bank, & Capital One – intended to promote economic growth and expand access among underserved populations. From supporting local nonprofits working in their communities to equitable housing and entrepreneurial initiatives, America’s leading banks have furthered their involvement in revitalizing historic communities and investing in future generations.

Fifth Third Bank

Fifth Third bank pledged $180 million over three years for its Empowering Black Futures Neighborhood Program, focused on five key goals: creating equitable connected systems; improving upward mobility among residents; building inclusive civic infrastructure; promotes prosperous small businesses; and developing healthy built environments. In the program, Fifth Third collaborated with Enterprise Community Partners and key community organizations to implement economic mobility plans driven by community members.

  • Fifth Third has collaborated with its community partners to make community development projects a reality; from building affordable housing in Cincinnati, Ohio, to teaching financial literacy in Tampa, Fla.
  • Fifth Third Bank announced last year that its Empowering Black Futures Neighborhood Program has exceeded the program’s $180 million three-year commitment. As of 2023, the program has invested over $187 million in 9 communities the need it the most.
  • As part of the Empowering Black Futures Neighborhood Program, Fifth Third has released a Community Impact Report, starting in 2023, to document its commitment to the lives of customers and the well-being of the communities Fifth Third serves through it’s Program. Read the 2023 Community Impact Report here.

Ally Bank

Ally Bank is invested in development projects to help Black entrepreneurs and communities bridge the wealth inequality gap and build a stable financial footing. Since 2020, Ally has invested millions working with nonprofit organizations and city governments to bring successful community development projects to life.

  • Ally has also helped develop affordable housing, such as its collaboration with the City of Charlotte and Habitat for Humanity to build new housing in and revitalize the historically black neighborhood of Plato Price. Read more about Ally’s contribution here.
  • The Black Impact Fund is a group of real estate-related funds focused on investing in Black and Brown communities in major cities across the U.S. Martin Muoto, CEO of SoLa Impact says, “Ally's investment demonstrates their deep understanding of how creating opportunities for access to affordable housing and access to capital within diverse communities fosters a stronger economic landscape for us all.” Read more about Ally’s investment here.

Capital One

Capital One started the Impact Initiative in 2020 to invest an initial $200 million over five years to close equity gaps in Black and Brown communities. The Initiative focuses on racial equity, affordable housing, small business support, workforce development, and financial well-being.

  • In 2021, Capital One invested directly with My Brother’s Keeper (MBK), an initiative launched by the Obama Foundation to address opportunity gaps for young men and boys of color. The investment helped launch the MBK Equity Framework to help new MBK communities address the concerns of its participants. Learn more here.
  • In 2022, Capital One built upon its existing Impact Initiative but investing $10 million with existing and new partner organizations that focused on everything from financial capacity building (African American Alliance of CDFI CEOs) to workforce development (Jobs for the Future). Learn more about all their investment channels here.

In addition to its own initiatives, Capital One has worked with federal programs to revitalize communities in need across the country. Capital One participates in the New Markets Tax Credit (NMTC) program to bring capital that helps communities develop infrastructure. In 2022, Capital One invested $439 million in capital for NMTC program projects.

  • Notably, Capital One invested money into the historically black community of Sweet Auburn in Atlanta, Ga. Working with the city’s Historic District Development Corporation (HDDC), Capital One has provided capital to develop a 100,000 square foot mixed-use space in the neighborhood. Learn more here.

To learn more ways in which America’s leading retail banks have worked to empower Black entrepreneurs and build brighter futures, read our previous blog HERE.