FS giants join $40m Greenwood funding round

FS giants join $40m Greenwood funding round

Mastercard, Visa and host of America's biggest banks have joined a $40 million Series A funding round for Greenwood, the digital banking startup targeting Black and Latino people and business owners.

Trusist Ventures led the round, which was joined by Bank of America, PNC, JP Morgan Chase, Wells Fargo, Banco Popular, FIS and All-Pro NFL players Julio Jones and Alvin Kamara.

The brainchild of former Atlanta mayor Andrew Young, Run the Jewels member Killer Mike - AKA Michael Render - and Bounce TV network founder Ryan Glover, Greenwood is named for the prosperous "Black Wall Street," part of the Greenwood District of Tulsa, Oklahoma, during the early 20th Century.

Since its unveiling in October, the venture has signed up more than 500,000 community members.

It is one of several digital banking firms - including Tenth and First Boulevard - that have emerged in recent months as The Black Lives Matter movement has led to a renewed focus on America's wealth gap and the financial services industry's role in it.

Says Glover: "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."

Greenwood will work with a partner bank to bring FDIC insured savings and spending accounts. Users will get access to Apple, Samsung, and Android Pay, virtual debit cards, P2P transfers, mobile cheque deposits, and free ATM usage in over 30,000 locations.

It has also promised to support the community through things like providing Black and Latino businesses with grants and families in need with free meals.

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