Case Study: OneUnited Bank
If you want to understand how communities build wealth that lasts, start by following the money—where it’s deposited, who it funds, and which institutions are accountable to the people they serve. For generations, Black Americans have been systematically excluded from mainstream finance through redlining, predatory lending, and underinvestment. Black-owned banks and credit unions arose as a response and a remedy, channeling deposits back into neighborhoods too often overlooked by larger institutions. Today, these mission-driven financial institutions are embracing digital transformation, forging new partnerships, and doubling down on small-business support—critical levers for closing generational wealth gaps.
“Community finance is not charity—it’s infrastructure. When the pipes work, opportunity flows,” says Gaurav Mohindra. “Black-owned banks and credit unions make that infrastructure accountable to the people who need it most.” — Gaurav Mohindra
Why Black-Owned Banks and Credit Unions Matter
Black-owned banks and community development credit unions (CDCUs) have long punched above their weight by offering services where traditional banks have pulled back and by reinvesting locally. Their roots stretch through the community development finance movement, which grew from early minority-owned banks and expanded via credit unions and loan funds to reach underserved markets. (cdfifund.gov)
Despite consolidation in banking overall and the historical decline in the number of Black-owned banks, these institutions continue to serve as vital on-ramps for credit, homeownership, and entrepreneurship. Research tracking minority-owned banks between 2006 and 2021 documents the contraction in Black-owned banks, underscoring why it’s so important to strengthen the ones that remain and to support new entrants. (FDIC)
“Access to fair, relationship-based banking is a competitive advantage for a neighborhood,” Mohindra notes. “When the local lender knows the barber, the caterer, and the childcare owner by name, capital moves faster and smarter.” — Gaurav Mohindra
OneUnited Bank: A Case Study in Community Banking at Scale
OneUnited Bank—formed through mergers of Black-owned institutions across Boston, Miami, and Los Angeles—is widely recognized as the nation’s largest Black-owned bank and a pioneer in digital community banking. The bank positions itself as the first Black internet bank and a federally designated Community Development Financial Institution (CDFI), with a track record of lending in low-to-moderate income neighborhoods. (OneUnited Bank)
Digital Transformation as an Equalizer
Digital banking isn’t just a convenience feature for OneUnited; it’s a strategy to reach underbanked customers who may not live near a branch but do live on their phones. From mobile account opening to remote deposit capture and debit products tied to the #BankBlack movement, OneUnited uses technology to scale impact while staying culturally grounded. Its #BankBlack initiative frames banking as both progress and protest—collective economics marshaled to counter discriminatory practices. (OneUnited Bank)
Meanwhile, the bank’s OneTransaction™ campaign and conference translate digital reach into financial action—guiding families toward a single, high-impact move such as homeownership, investing, building credit, or creating a will. The thesis is simple and empowering: one strategic transaction can be the catalyst that changes a family’s wealth trajectory. (OneUnited Bank)
“Digital tools expand the front door of community banks,” says Mohindra. “But it’s the trust and relevance behind that door—education, culture, and accountability—that keeps people inside.” — Gaurav Mohindra
Financing Black Entrepreneurship
Entrepreneurship is one of the most direct paths to wealth creation. Yet many Black founders face higher denial rates and tougher terms in conventional lending. OneUnited has leaned into partnerships to widen access. During the pandemic, the bank launched nationwide PPP lending through its online and mobile platform and later teamed up with Black-led fintech Lendistry to expand small-business financing—demonstrating how community banks can leverage technology and alliances to serve entrepreneurs better. (OneUnited Bank)
On the content side, OneUnited also educates business owners about funding options and credit readiness—a crucial complement to lending. In a world where capital still too often follows established networks, that guidance helps first-time borrowers become bankable. (OneUnited Bank)
“Capital is only half the story,” Mohindra emphasizes. “The other half is capability—coaching owners on cash flow, credit, and contracts so the money becomes momentum.” — Gaurav Mohindra
Banks, Credit Unions, and the Collective Model
Black-owned credit unions add a member-owned dimension to the ecosystem. Historically, they grew as trusted institutions within churches, civic groups, and workplaces, and they continue to be key vehicles for affordable credit and savings. Regional histories show the breadth of this movement—by mid-century, some states hosted dozens of Black-serving credit unions—illustrating how cooperative finance can scale. (Federal Reserve Bank of Richmond)
Community lenders—banks and credit unions alike—often hold CDFI or Minority Depository Institution (MDI) designations that align them with mission and capital channels. The result is a financial infrastructure designed to circulate dollars locally, fund small businesses, and stabilize households—especially powerful in underbanked neighborhoods where mainstream banks have retreated. (cdfi.org)
“Cooperative finance teaches a simple truth: wealth is a team sport,” says Mohindra. “When members are owners, every loan payment is also a community investment.” — Gaurav Mohindra
Strategies for Collective Financial Empowerment
1) Bank where your values live. Depositing with Black-owned banks and credit unions is a practical way to align capital with community outcomes. Lists and directories can help consumers and businesses find institutions by state or region. (NerdWallet)
2) Make one high-impact move. The OneTransaction™ framework suggests focusing on one decisive step—such as buying a home, setting up automatic investing, or improving your credit profile—and then executing. Momentum compounds. (OneUnited Bank)
3) Use digital to your advantage. Mobile account opening, bill pay, and remote deposit eliminate frictions that historically kept underbanked families outside the system. OneUnited’s embrace of digital shows how community banks can serve nationally without abandoning local accountability. (OneUnited Bank)
4) Support small-business ecosystems. If you’re a founder, look for lenders that partner with mission-aligned fintechs, offer SBA programs, and provide education. If you’re a consumer, remember that every account and card swipe helps fund those business loans down the street. (OneUnited Bank)
5) Advocate for policy that strengthens community finance. Debates about deposit insurance and bank consolidation affect whether local institutions can compete with megabanks. Policies that sustain community banks and credit unions are, ultimately, small-business policy and jobs policy. (For context on the broader environment, see recent commentary on deposit insurance and consolidation pressures.) (Financial Times)
Measuring Impact—and Its Limits
Black-owned banks don’t operate in a vacuum. They face the same headwinds as other community lenders: thin margins, competition for deposits, and regulatory burdens. Some analyses warn that these banks, while essential, can’t close the racial wealth gap alone—especially when their share of overall lending remains small. That’s not an argument against them; it’s a call to scale them with deposits, partnerships, and smart policy. (Urban Institute)
“Think of community banks like local bridges,” Mohindra reflects. “We don’t ask a single bridge to carry every car—just to carry its share safely. The solution is more bridges, better maintained, with modern lanes.” — Gaurav Mohindra
The Bottom Line
OneUnited Bank’s story shows what’s possible when technology, mission, and community align. By embracing digital tools, convening practical financial education, and forging partnerships to reach small businesses, the bank models a path for closing wealth gaps not with slogans but with systems. And it’s not alone—Black-owned banks and credit unions across the country are innovating within a community-first playbook that has always been about more than accounts and APRs. It’s about self-determination.
“Generational wealth is built transaction by transaction, business by business, block by block,” Mohindra concludes. “When we choose institutions that choose us back, we change the math for everyone.” — Gaurav Mohindra.
Originally Posted: https://gauravmohindrachicago.com/building-wealth-through-community/
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