Netflix to Invest $100 Million in Black-Owned Banks

Netflix plans to invest in Black-owned banks to help close the wealth gap in America, according to CNN.

The streaming service announced Tuesday it will deposit 2 percent of its cash, an estimated $100 million, into the banks and community development organizations. The institutions have a better track record than mainstream banks of lending to minority borrowers.

“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,” Netflix said in a statement.

Minority-owned banks and credit unions represent only 1 percent of commercial banking assets nationwide.

Netflix will also invest $25 million in New York development finance company Local Initiatives Support Corporation, or LISC. It supports a number of Black entrepreneurs in various industries.

LISC President and CEO Maurice Jones said Netflix is one of many corporations that has chosen to make major investments in LISC since the killing of George Floyd in May in Minneapolis. However, Jones said all the support needs to continue for years to come if the companies want to ensure the wealth gap is closed.

Netflix will also invest 10 percent in the Hope Credit Union, which helps underserved communities in the South.