In a release on Twitter, Kevin Davenport, Virginia State University’s Chief Financial Officer, announced that President Makolah Abdullah would be establishing a personal banking relationship with Virginia State University Federal Credit Union, which is the fourth largest HBCU-based credit union with $8.6 million assets.
It is a move that is prominent after the massive banking black movement began last year. Noted web traffic to HBCU Money would spike anytime there was a police shooting last year to our African American Bank and Credit Union directories. Many African American owned banks and credit unions reporting thousands of accounts being opened and millions of dollars being moved as African Americans looked to take more ownership of their economic power. The movement also coupled with years of financial abuse by banks like Wells Fargo, Bank of America, and others towards the African American community.
The decision by President Abdullah is an important moment as college presidents tend to be more a more financially affluent group. Financially affluent African Americans have often been a group that has been missing among African American owned financial institutions as clients, leaving many institutions to try and survive by piecemealing less financially stable customers and contributing to decades of stagnant products and services offered. We hope this will spur many other HBCU presidents to move their banking relationships and continue to set the example for their students and our community that in order to build a stronger African American ecosystem our institutions, all of them, need our support, investment, and patronage.
Of course, the major missing piece is moving institutional accounts. HBCUs control billions in institutional money and could significantly enlarge the $10.4 billion that is now controlled by 339 African American owned banks and credit unions left. However, very few African American financial institutions are capable of handling institutional accounts. Currently, OneUnited Bank, the largest African American owned bank or credit union with $648 million in assets, has two HBCUs, Roxbury Community College and Florida Memorial as institutional clients. As the banks and credit unions become more stable with growing deposits from individuals, then they will be able to offer the more complex products that institutions and businesses need. So while President Abdullah maybe just one account, the halo effect could begin a second wave in the #BankBlack movement in 2017 and beyond.
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Every Saturday the HBCU Money staff picks ten articles they were intrigued by and think you will enjoy for some weekend reading impacting finance and tech.
Public investment in K-12 schools has declined dramatically in a number of states over the last decade. / CBPP ow.ly/aasE308d4WH
Industry reacts: Is HUD’s FHA mortgage insurance premium suspension good or bad? / Housing Wirebit.ly/2k9DByz
The rise of American ingenuity: innovation and inventors of the golden age / NBER bit.ly/2j2Gjse
92% of us are breathing unsafe air. This map shows just how bad the problem is / WEF wef.ch/2iRWlli
Best of Davos: ASEAN is 50, and it’s come a long way. Here’s why you should care / WEF wef.ch/2jcFwCq
Robot reporter gets first article published in China / Computerworld ow.ly/jkDC308aMOF
“Sweden sets 100% renewable energy production target”
/ Renewable Cities buff.ly/2iKKrNk
Slip a robotic sleeve over a weak heart, and it keeps on pumping
/ Science News ow.ly/nm6H308aMHX
China reminds Trump that supercomputing is a race
/ Computerworld ow.ly/kLuI308aMDJ
A-to-Z Review Finds California’s Clean Cars Program Is Working
/ Clean Technica ow.ly/lknI308aMya
HBCU states and territories are vital to the energy production of United States and the world these days. The latest Baker Hughes rig count shows that the U.S. currently has 659 active rigs, with 489 or 74.2 percent of those being in HBCU territories. Energy continues to be a vital part of the economic landscape where HBCUs are located and is a barometer for how the economies of those states may very well be doing now and going forward.
Gas rigs are denoted by an orange triangle. – 79
Oil rigs are denoted by a blue triangle. – 410
November HBCU Count – 478
Niall Ferguson follows the money to tell the human story behind the evolution of our financial system, from its genesis in ancient Mesopotamia to the latest upheavals on what he calls Planet Finance. What’s more, Ferguson reveals financial history as the essential backstory behind all history, arguing that the evolution of credit and debt was as important as any technological innovation in the rise of civilization. As Ferguson traces the crisis from ancient Egypt’s Memphis to today’s Chongqing, he offers bold and compelling new insights into the rise–and fall–of not just money but Western power as well.