Black-Owned Banks

William Huston, CCO, AIF®
by in Published on July 06, 2021

Black-Owned Banks

Black owned banks

Bay Street Capital is a black-owned bank in the asset management category.

The black-owned bank is a signatory for the United Nations Principles of Responsible Investing. As one of the few black-owned investment banks in the country, Bay Street invests with high conviction, through the lens of history, in organizations we believe will outperform. We are one of the few black-owned banks, black-owned financial institutions, personal loans, credit unions, credit cards, financial services, financial literacy, financial institutions, African American and minority depository institution services. We are passionate about building income communities, black communities, and BIPOC communities. We serve on the board of directors for various nonprofits and foundations across the US.

William Huston founded Bay Street after 13 years of supporting the United States' largest retirement plan ($650B) Thrift Savings Plan. He is recognized as Investopedia’s Top 100 Financial Advisors for 2021. In California, only two black-owned firms out of nineteen firms received this recognition. In Scottsdale Arizona, Ekenna Anya-Gafu CFP, AAMS is recognized among the Best Financial Advisors for his responsiveness, friendliness, helpfulness, and detail. Bay Street was founded to advocate for diverse and emerging fund managers and entrepreneurs. In 2021, Bay Street was selected as a finalist out of over 900 firms across the US in the category of Asset Manager for Corporate Social Responsibility (CSR).

federal credit union, black owned banks

Bay Street Capital is one of the few Black-owned banks included in this year's Finalists.

This year over 167 companies competed for various award categories. Black-owned banks and credit unions that provide investment management services across the US have been recognized as finalists across various categories.

Black-Owned Banks and Credit Unions

One of the black-owned banks in the asset management category that was recognized is Bay Street Capital Holdings, a black-owned bank headquartered in Palo Alto California. Bay Street's team was also recognized as a top 100 financial advisor and was the only black-owned bank in the asset management category based in the bay area to receive this award.

federal credit union, black owned banks

Why Recognizing Black-Owned Banks and Credit Unions in the Investment Management Category Is Important

The problem with traditional due diligence is that the risk assessment framework is designed in a way that is to the disadvantage of the black-owned banks and credit unions. This is because black-owned banks and credit unions in the investment management space are typically newer and smaller than other asset managers. A sad fact is the US has perpetuated a system "in which white, male asset managers control 98.7% of the investment industry’s $69 trillion in assets under management."

This is clearly an inappropriate problem that is affecting black-owned banks and credit unions and will continue to lead to problems moving forward if the root cause is not addressed.

As nice as awards and recognitions are, the most important thing that can be done for black-owned banks and credit unions is for them to be included in a wider range of opportunity sets that allow them to participate at a more appropriate level. This additional representation in the banking community will lead to better outcomes for all parties when black-owned banks and credit unions are able to bring their diverse teams and skillsets to the table.

The State of Black-Owned Banks and Credit Unions

Community development is an important issue across the investment community. As more Black-owned banks and credit unions are recognized, the hope is that they will also be given opportunities to compete with a more inclusive investment management community.

2021 Investment banks and Credit Union Awards

federal credit union, black owned banks

The annual program honoring individuals and business initiatives that help financial advisors better serve their clients will be held in person in New York City on Sept. 9.

The “Wealthies,” WealthManagement.com’s annual awards programs honoring individuals, organizations, and companies that help financial advisors build better businesses and create better outcomes for their clients, is back and in person this September.

This year, there were more than 900 entries submitted from 346 different companies, a 40% increase over the previous year. Envestnet garnered the most finalist nominations with eight, followed by Raymond James and Morningstar with seven, and BNY Mellon, eMoney, Fidelity Investments and Orion Advisor Solutions with six apiece.

View the full list of finalists

But there’ll also be new faces and firms at the Sept. 9 gala, as 167 companies submitted nominations for the first time, with 77 reaching the finalist stage; in all, 221 different organizations were selected as finalists in one or more of the firm or individual categories. The robust participation was a testament to the value firms place on the program and surrounding events, according to William O’Conor, managing director at WealthManagement.com.

“We’re pleased that in 2021 we’ll return to celebrating and honoring our awards finalists and winners with in person events in New York City during the afternoon and evening on September 9, with concurrent virtual broadcasts accessible to a broader audience of awards team members and other wealth professionals across the nation,” he said.

Last year, the Wealthies were an entirely virtual affair, but this year the 7th Annual Industry Awards program will be in person with options for virtual viewing.

The afternoon sessions will feature discussions around technology and financial advisors' practices, with dedicated time and space for networking.

federal credit union, black owned banks

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