Building generational wealth has become a key value in the Black community as of recently with an added emphasis on buying and owning our own platforms and institutions.
In an effort to resolve the racial economic divide that plagues underserved communities across America, Netflix has announced a plan to invest $100 million into Black-owned banks with a focus on helping the Black community.
The New York Post reports that the streaming giant will shift two percent of its cash holdings to Black-owned banks and lenders to “directly support Black communities in the US.”
According to Variety, Netflix claims that banks led or owned by Black people represent only a small portion of the country’s banking assets.
“We believe bringing more capital to these communities can make a meaningful difference for the people and businesses in them, helping more families buy their first home or save for college, and more small businesses get started or grow,” the streaming platform wrote in a blog post.
“Moving some of Netflix’s cash deposits into Black-focused institutions and organizations in the U.S. can put more capital to work for the people and businesses in these communities and narrow the gap,” Netflix CFO Spencer Neumann said, according to a statement obtained by The Hollywood Reporter.
Netflix has been working diligently to shine a light on Black culture in ways that greatly improve our community outside of entertainment. This new announcement comes on the heels of CEO Reed Hastings pledging $120 million to Black colleges and $5 million to organizations dedicated to creating opportunities for Black creators.
The Hollywood Reporter shares that behind its $100 million commitment, Netflix will set aside $25 million for a newly established fund called the Black Economic Development Initiative which will invest in Black-owned financial institutions serving underrepresented communities and Black community development corporations within the U.S. Additionally, $10 million will be disbursed to the Hope Credit Union to benefit underserved communities in the South.
“This capital will fuel social mobility and prosperity in the low- and moderate-income communities these groups serve,” Netflix said. “We plan to redirect even more of our cash to Black-led and focused institutions as we grow, and we hope others will do the same.”