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So banks make money by investing other people's money, right yeah, essentially, and they invest the money in loaning it out.
That's basically they take it to posits, they loan it out live on the spread primarily.
So what is you guys' investment strategy or what what do you guys invest take consume much money in.
So it's not about necessarily investing at the at the whole and company level. Any investment we make has to be approved by the federal regulatory bodies. UH, there will be opportunities to do that, and I do think that some of the work that we talked that we just talked about in FinTechs, I think it's appropriate for us to look at figuring out how do we spark more innovation in the fintech space so that we can close
that ecosystem. So investing in technology and in businesses that are in that space would make a lot of sense for us. But what makes the technology we're talking about it? You have to be able to in a post COVID world where you know, nobody's walking in a bank to do anything right now unless you just have have to.
We have to be able to get a concierge level of banking, so that right now, where you're sitting at wherever you are right now, if you decide that, hey, you know what, I'm just going to go ahead and buy his second house in New Orleans. I need to just figure this out. We have to provide the concierge level of banking so you don't feel like you're on your own. That technology needs to be seamless, but it
still has to have real people working with you. Only four percent of African Americans use Small Business Administration loans and that's government guaranteed loans. That's the easiest way of getting loans for businesses that have a hard time in the dead field. Only four percent. And I used to I was at SBA. You know, I was the regional
administrator for SBA for the Southeast United States. At the end of the day's that is one of the biggest strategies we have out here because we're not getting access to these resources. But I get why people don't do it. It seems like a headache. Nobody wants to deal with it. You have to create. JP Morgan gives a fifty million dollar customer is what we give a fifty thousand dollars customer redemption that level of handholding, working with you every step of a way to make sure you get access
to the products and services. So what we invest in is like we take these deposits that people that these big corporations are giving us, and then we turn them into loans and opportunities, whether it's your home loan, your business loan, your faith based organization loan. We create debt based opportunities. And when it comes to investing, it is critically important for us to look at investing at any business that closes the racial wealth gap and secures the
ecosystem for black wealth. If anybody's in that space, then absolutely that's something Redemption should be looking at investing in.
So the numbers are staggering, right, like you said in the sixties, is one hundred and thirty five black banks about the early two thousands dot com bubble with down to forty seven today, were roughly about sixteen to seventeen of those banks. However, inside of that sixteen to seventeen, I don't know how many of them manage over a billion dollars, Right, So there's one, Yeah, there's one that
manages over a billion dollars. How do we get the clientele, the corporate accounts, the customers is with that high net value to be part of Redemption Bank? Like, what's the marketing plan? What's the strategy to make sure we're getting this type of clientele so that we have enough money to now lend out to our community.
Yeah, so just a little bit about how this banking works.
Man.
At the end of the day, because a lot of these banks are in low to modern income areas, regulators look at their loans and say they're risky. And now, honestly, historically this has been deemed as racist in many aspects. They grade out every loan and we see I've talked to black bank presidents that would tell me I got regulators coming in here grading my loans for a barbershops risky. When these people have never missed the loan, they paid on time, they've done everything I've asked them to do.
But because they in this neighborhood, they get treated as though as risky. And what that means is if that loans for one hundred thousand dollars, then the regulator tells that bank you need to keep one hundred thousand dollars of cash in your reserve because that loan may go under. Now what that means is that you got to keep that one hundred thousand dollars and it's not on the street making money anymore. You got to hold you got
to hold it. So what we do to get around that, what we're going to be able to do is say, look, you know, we're going to cast a wider net. See, most black banks are CDFIs. They're highly concentrated in cities, in regional areas. We're choosing not to be a CDF five because unfortunately cdfives are too often equated to nonprofits and they have all these restrictions. Don't get me wrong,
they do the really hard work. They are mission driven. However, not taking that label and just being a straight up bank, you get an opportunity to play across the country. You get an opportunity to recruit across the country. And this bank was built by black entrepreneurs, and I think that's the biggest difference having a bank that eighty five percent of our black investors are entrepreneurs, doctors, lawyers, you know, hedge fund folks, private equity people. We got one pitch,
Let's build a bank we actually use. That's something. Let's build a bank that you, me and everybody who wants to bank black will actually use. Now we can all have a conversation about why we don't bank black now, and we know what those reasons are, well, let's alleviate those reasons by creating a bank that gives me the service I need and the access to credit I need. How I need it to make sure my business grow. If we can do that, then naturally I believe that
black people will support black owned banks. But if you can't, you can't make that up. You got to show up with the services. We don't give each other a pass. How many how many of us got black bank cards in our wallet but may not even use them? And then their study at Stanford a while back that showed that sixty four percent of black people said they would automatically go move to a black bank if they felt they got the services that they could get at a
white bank. We gotta beat that threshold. We have to be able to be competitive even to get our.
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An illegal alien from Guatemala charged with raping a child in Massachusetts. An MS thirteen gang member from El Salvador accused of murdering a Texas man of Venezuelan charged with filming and selling child pornography in Michigan. These are just some of the heinous migrant criminals caught because of President Donald J. Trump's leadership. I'm Christine Noman, the United States
Secretary of Homeland Security. Under President Trump, attempted illegal border crossings are at the lowest levels ever recorded, and over one hundred thousand illegal aliens have been arrested. If you are here illegally, your next you will be fine nearly one thousand dollars a day, imprisoned and deported, you will never return. But if you register using our CBP home app and leave now, you could be allowed to return legally.
Do what's right. Leave now under President Trump America's laws border and families will.
Be protected sponsored by the United States Department of Homeland Security, Home People support and that's fine.
I'm okay with it. I'm not afraid of competing. That's exactly why we're doing this in Utah so we can have access to the resources in a regulatory environment so that we can compete. I don't want you come to be just because I'm back. Once you come because I'm the best of what I do and you believe in what we're doing, because we want to be the best for us.
I think over the last twenty years banks have been in a crisis. This year, mid size and small banks have been falling apart on publicanas, trade to market. What are some of those services that people need and what do you think banks can do better if I'm being honest to have our trust, because when I talk about a lot of banking stocks on the show, not many people say that they trust banks, and for a multitude
of reasons. Can you address, like what you're going to do to build those kind of relations where they do trust? And then what do you think some of those services that people would need to make us want to bank with you.
You know the distrust of African Americans and the banks has been since the since right after the Civil War. W the Boys said it the best when the Freeman's Bureau, which was created for free people, ended up being a Ponzi scam and deleting ninety percent of all black wealth. When that bank closed, nobody got to refund, nobody got
to io you. It was just gone. WB the Boys said, it would have been better off if we had to remain slaves for another decade, then to suffer the ramifications psychologically of losing all of our money in a federal bank that the government created, and we are the children of that distrust. We're still here and the trust is still real. So it starts with the fact of who's running the bank. Can you put faith in these people that run the bank? And then two, when it comes
down to making a decision. I know, we got laws that's supposed to say it's anti discriminatory, you should not use race in a negative way. But the numbers are the numbers. We have to be able to think outside of the box. Because I'm gonna tell you right now, as long as we rely on credit scores in this country as a primary indicator of who's worthy of owning anything or getting access to credit, we will fundamentally have
a racist system. So the future of banking has to be around looking at people more than a credit score. The future of banking has to be able to see people from cash flow. And you and I know dealing with black entrepreneurs. Ninety percent of us are sold entrepreneurs, and a lot of them just go straight cash because they don't for the exact reasons. They'd rather just be a cash based business than go into debt. But that doesn't mean they're not good at what they're doing. They're
actually slowing themselves down by not leveraging credit. But if we could go to them and show them, look, the decisions will be based off of more than this algorithm. And that algorithm that experience Echo Facts and TransUnion put out there says that fifty percent of black people shouldn't be trusted. That's what it says, and so any system that possibly could believe the fifty percent of us shouldn't be trusted to get along, that system shouldn't be trusted.
So we must be at the forefront, all of us who are in this space and moving our people away from these antiquated algorithms that talk about credit scoring in a way that limits our ability to have full access to this capitalist economy.
So, okay, when doctor Martin Luther King dicead it was one hundred and twenty banks, right, black banks on hundred and thirty five, one hundred and thirty five yep, And now there is twenty right, So that's pretty disturbing. So a how come that isn't something that people have talked about a lot? And why has that drastic Because I'm at this point is probably going to be zero if this trend continue in the next thirty years, that there's not gonna be any any black owned banks at all.
So what is the root cause for the for the collapse of black banks? And why has it anybody really been champion that?
Look, that's a great question. A dear friend of ours, Mersa, wrote the book Color of Money. If you want to, if you're out here right now, you want to read the history of all this, The Color of Money, black banks and closing the racial wealth gap, take a look at it. Give her a shout out. She did an amazing book there. But let me give you some personal history here. My family started a black bank in nineteen
thirty six in Georgia, South Georgia Baker Byromville. This bank was started by my great great grandfather and his brother in law, and it was built for the fact of they wanted to create a bank that could finance sharecroppers to buy the land that they were sharecropping on. Because everybody knew that when slaves left and started sharecropping that ten percent was just a way to stay alive long
enough to keep working. But we created a bank that could finance them buying the land that they were formerly slaves on, and these sharecroppers could go and create prosperous lives and it worked. Now. That bank ran from nineteen thirty four, and in nineteen thirty four it was about one hundred and eighty black banks. There was a tremendous amount of black banks. We went out. We lost that
bank in nineteen seventy six. We lost that bank in seventy six because the American economy declined right after Vietnam War. Everything was economically trash. Really a lot of hints of where we are right now. But we were forced We were forced out. It wasn't like we just closed because we didn't have business. The bank closed because regulators were over regulating black banks and not giving us the same
treatment as they were giving white banks. The regulators at the end of the day, all the police at the end of the day, they are the police of the industry. And we all know policing is different in different neighborhoods. In our neighborhood with the black banking neighborhood, traditionally, those regulators have been harder on black banks, not making them have the capital requirements that white banks had, and forcing us in the situations where ultimate, my family's bank was
forced to auction. Now because we're making money, we got forced to auction, like literally auctioned off. And we know what that looks like in the Deep South, right, And ultimately that our black bank was auctioned off and got rolled up into what we call now P and C Bank. That's the story of America.
So your bank got turned in to P and C Bank, right.
An illegal alien from Guatemala charged with raping a child in Massachusetts. An MS thirteen gang member from Al Salvador accused of murdering a Texas man of Venezuelan charged with filming and selling child pornography in Michigan. These are just some of the heinous migrant criminals caught because of President Donald J. Trump's leadership. I'm Christy Noman, the United States
Secretary of Homeland Security. Under President Trump, attempted illegal border crossings are at the lowest levels ever recorded, and over one hundred thousand illegal aliens have been arrested. If you were here illegally, your next you will be fine nearly one thousand dollars a day, imprisoned and deported, you will never return. But if you register using our CBP home app and leave now, you could be allowed to return legally.
Do what's right. Leave now. Under President Trump, America's laws, border and families will be protected.
Sponsored by the United States Department of Homeland Security.