OBSIDIAN
History repeats, so we studied
diversity, mobility and partnerships
"Diversity is therefore an historical phenomenon that is best explained by selection-related changes in mobility, dispersibility, and the evolution of partnerships."
IntroducTION
Black Americans are on pace to have a median net worth of $0 by 2053 if current trends continue
We thought that was unacceptable, so did our partners. So we built Obsidian. A Black-owned bank that tends to the true unmet needs of Black Americans.
42%
Of Black Americans
Are Unbanked or underbanked
20%
Of Black americans
have credit scores under 620
The History
How did we get here?
President Lincoln establishes Freedmans Savings Bank
The bank establishes 37 branches across 17 states totaling 67,000 depositers
Freedmans Savings Bank fails due to massive fraud
$3.7m in deposits were lost on speculative investments and of the original 50 trustees, none of them were Black
True Reformers Bank becomes first Black-Owned bank to receive a charter
Operating out of the home of the former escaped slave, the bank was the only bank in Richmond, VA to maintain full operation during the panic of 1893.
Rev. Browe dies in 1897 and True Reformers closes in 1910.
At it's peak under Rev Browe, True Reformers operated branches in 24 states
Black Landowner O. W. Gurley purchases 40 acres in Tulsa
These 40 acres would mark the beginning of Black Wall Street in Tulsa.
JB Stradford openes the Stradford Hotel in Greenwood
The luxurious 54 room hotel was one of the biggest black owned in America.
300 Black Americans, 242 businesses and 35 square blocks
All destroyed in the Tulsa Race Massacre in the Spring of 1921.
Servicemen’s Readjustment Act is signed into law.
Affordable home loans and college tuition was given to the booming post-war economy.
4.3 million home loans worth $33 billion were handed out.
Less than 5,000 went to non-white veterans.
The Federal Home Loan Bank Board surveyed each city for lending purposes
Risky neighborhoods were deemed "red" and risky to lend too.
From 1945-1959 Black Americans received just 2% of federally insured home loans
Fair Housing Act of 1968 was passed to fight the practice of redlining
Equal Credit Opportunity Act enacted 28 October 1974 makes it unlawful for any creditor to discriminate against any applicant, with respect to any aspect of a credit transaction.
Community Reinvestment Act of 1977
Required banks to apply the same lending criteria in all communities.
In May 2015, the U.S. Department of Housing and Urban Development announced that Associated Bank had agreed to a $200 million settlement over redlining in Chicago and Milwaukee
The three-year HUD observation led to the complaint that the bank purposely rejected mortgage applications from black and Latino applicants.
New York Attorney General Eric Schneiderman announced a settlement with Evans Bank for $825,000 on September 10, 2015. An investigation had uncovered the erasure of black neighborhoods from mortgage lending maps.
According to Schneiderman, of the over 1,100 mortgage applications the bank received between 2009 and 2012, only four were from African Americans.
United States Department of Justice announced a $33 million settlement with Hudson City Savings Bank, which services New Jersey, New York, and Pennsylvania, on September 24, 2015.
The six-year DOJ investigation had proven that the company was intentionally avoiding granting mortgages to Latinos and African Americans and purposely avoided expanding into minority-majority communities.
City National Bank to pay $31M in redlining settlement with DOJ
The complaint filed in federal court today alleges that from 2017 through at least 2020, City National avoided providing mortgage lending services to majority-Black and Hispanic neighborhoods in Los Angeles County and discouraged residents in these neighborhoods from obtaining mortgage loans.
Million Doors Challenge
We're going to over one million doors.
Financial Wellness Literature
Being financially well takes more than just knowledge, you need clearly defined pathways to access capital.
we have that nowYouth Business Plans
$7,000 invested by 13 to have a million dollars by retirement age. Our business plans will help assist kids on their journey from $100 to a million.
Based on the average returns of the S&P 500Building with Intention
It's hard to get ahead when you are out of breath from catching up. We’ve built products that offer you a breath of fresh air.
Just breathChecking Accounts
Personal Checking Accounts
basic checking
Just need basic checking?
This is for you.
Free/ with active direct deposits
- Digital Banking Included with Mobile Check Deposit, Bill Pay, Early Direct Deposits and P2P Payments
- 1 Box of Standard Checks per Year Included
- Access to over 43,000 surcharge-free ATMs nationwide
- ATM Surcharge Credits
Receive up to $5 per statement period for ATM Surcharge Fees - Wire Discount $5 discount per wire
- ATM Fee Credits
Receive up to $5 per statement period for non-Obsidian ATM Fees
premium checking
Have more needs?
Our premium checking is industry leading.
$9/ per statement period
- Digital Banking Included with Mobile Check Deposit, Bill Pay, Early Direct Deposits and P2P Payments
- 1 Box of Standard Checks per Year Included
- Access to over 43,000 surcharge-free ATMs nationwide
- ATM Surcharge Credits
Receive up to $10 per statement period for ATM Surcharge Fees - Wire Discount $10 discount per wire
- ATM Fee Credits
4 Receive up to $10 per statement period for non-Obsidian ATM Fees
The service charge does not apply when you have:
At least a $2,000 average ledger balance for the activity period
OR
Direct deposits totaling at least $1,000 into the account during the activity period
Lending Products
We understand. So our lending products are here to help.
Infant Bonding Loan
You shouldn't have to choose between bills or being a parent.
We'll be an helping hand.
$2,000 / interest free during parental leave
- Loan amount split into Bi-Weekly amounts and paid over length of maternity leave
- Flexible payment options
- Alternative credit scoring options
- Infant bonding is one of the strongest indicators of success in children
A to B loan
Reliable transportation is important.
$5,000/ receive two free oil changes
- Loan amount split into Bi-Weekly amounts and paid over length of maternity leave
- Flexible payment options
- Alternative credit scoring options
- Ability to use private sellers
Business Checking Accounts
It takes a village, turning our youth back into entrepreneurs helps the communities; strengthens the connection between generations.
Brilliant Minds Youth Business Account
Starting your business young?
We can help
$100 offer with account opening*
- Access to over 100 business plans for youth
- Digital Banking Included with Mobile Check Deposit, Bill Pay, Early Direct Deposits and P2P Payments
- 1 Box of Standard Checks per Year Included
- Access to over 43,000 surcharge-free ATMs nationwide
- ATM Surcharge Credits
Receive up to $5 per statement period for ATM Surcharge Fees - Wire Discount $5 discount per wire
- ATM Fee Credits
Receive up to $5 per statement period for non-Obsidian ATM Fees
Brilliant Minds Graduated Business Account
You're 18 now!
You've graduated.
Round Up match on all purchases
- Access to over 100 business plans for young adults
- Round-Up Investing Boost
- Digital Banking Included with Mobile Check Deposit, Bill Pay, Early Direct Deposits and P2P Payments
- Access to over 43,000 surcharge-free ATMs nationwide
- ATM Surcharge Credits
Receive up to $10 per statement period for ATM Surcharge Fees - Wire Discount $10 discount per wire
- ATM Fee Credits
Receive up to $10 per statement period for non-Obsidian ATM Fees
Awards
Young but we're snatching up accolades
OBSIDIAN
Let's walk together on our journey to being banked in America.
"Try to be the rainbow in someone else's clouds"