A new Black-owned and operated financial establishment, Adelphi Bank, opened Monday in Columbus, Ohio – unique to the state.
Franklin County Ohio Commissioner, Kevin Boyce, who co-founded Adelphi, told Columbus station, WBNS, that protests following the murder of George Floyd inspired the launch of the bank.
“My business partner called me and he asked, ‘why are we still going through this? And why are these types of things still happening in America?’ ” Boyce said. “A lot of it is rooted in racism and poverty, and specifically the wealth gap. And I said, ‘We need more financial institutions that cater towards building wealth for our residents.’ And he said, ‘Why don’t you start a bank?’”
Adelphi selected Jordan Miller – from Huntington Bank, and the CEO of the Central Ohio Market for Fifth-Third Bank, to be the chairman.
The financial institution raised about $25 million from about 75 investors, including Huntington Bank, Newark, Ohio-based Park National Bank, Cleveland-based KeyBank, and the charitable arm of the insurance company, Nationwide, according to the Columbus Dispatch.
There is a growing need for Black-owned and operated banks to respond to the ongoing systematic racism African Americans encounter in the banking system when applying for home and small business loans.
“Where there are Black-owned banks, Black people get mortgages. Black business owners get financing for those supplier diversity or supply chain issues that they have. People get a conversation with the professionals. They get an education for their children. So that’s why it’s significant,” Miller said, according to Ohio public radio station WYSO.
The number of black-owned banks in the United States declined from more than 130 in the 1930s to just 20 recognized as Black-owned by the Federal Deposit Insurance Corporation (FDIC) in 2022.