*Redemption Bank has launched a debit card that channels consumer spending into direct cash assistance programs for single mothers in government-subsidized housing.
According to The Associated Press, the Black-owned financial institution introduced the Bank King Card in conjunction with Juneteenth. Redemption Bank said it will donate money from every new account opened. The funds will go to nonprofits that provide financial assistance to families.
Card purchases will not determine the size of those contributions. Instead, the bank’s board of directors will set a fixed annual donation amount based on new account openings. Organizations seeking grants will apply through a dedicated foundation, which will distribute funds to eligible recipients.
“Bank King Card represents a new regenerative banking model that starts with investing in mothers who are a few hopeful dollars away from breaking out of poverty, and opening up America’s vaults of opportunity that have been closed to too many for too long,” Redemption Holding Co. Chair and Chief Executive Ashley Bell said.
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Bell pointed to guaranteed income initiatives as evidence that direct cash payments can improve long-term stability for families.
“What we’ve seen is these guaranteed income programs have been a jolt out of poverty for women around the country, including many women of color,” Bell said.
Chastity Lord, president and chief executive of the Jeremiah Program, said direct cash assistance frequently covers basic necessities, but its impact extends further.
“It provides dignity,” Lord continued. “It ensures summer learning, not leaving kids at home. It increases nutrition. It allows the mom to make powerful decisions that benefit their children and their families instead of making decisions to just get by.”
Redemption Holding Co. made history a year ago when its acquisition of Holladay Bank & Trust created the first Black-led investment group to own a bank in the Western United States. Bernice A. King, the youngest daughter of the Rev. Martin Luther King Jr., is co-founder and senior vice president of the institution.
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