Speaker 1: An illegal alien from Guatemala charged with raping a child
Speaker 1: in Massachusetts. An MS thirteen gang member from Al Salvador
Speaker 1: accused of murdering a Texas man of Venezuelan charged with
Speaker 1: filming and selling child pornography in Michigan. These are just
Speaker 1: some of the heinous migrant criminals caught because of President
Speaker 1: Donald J. Trump's leadership. I'm Christy nom the United States
Speaker 1: Secretary of Homeland Security. Under President Trump, attempted illegal border
Speaker 1: crossings are at the lowest levels ever recorded, and over
Speaker 1: one hundred thousand illegal aliens have been arrested. If you
Speaker 1: are here illegally, your next you will be fined nearly
Speaker 1: one thousand dollars a day, imprisoned, and deported. You will
Speaker 1: never return. But if you register using our CBP home
Speaker 1: app and leave now, you could be allowed to return legally.
Speaker 1: Do what's right. Leave now. Under President Trump, America's laws,
Speaker 1: border and families will.
Speaker 2: Be protected sponsored by the United States Department of Homeland Security.
Speaker 3: So banks make money by investing other people's money, right yeah, essentially,
Speaker 3: and they invest the money in loaning it out.
Speaker 4: That's basically they take it to posits, they loan it
Speaker 4: out live on the spread primarily.
Speaker 3: So what is you guys' investment strategy or what what
Speaker 3: do you guys invest take consume much money in.
Speaker 4: So it's not about necessarily investing at the at the
Speaker 4: whole and company level. Any investment we make has to
Speaker 4: be approved by the federal regulatory bodies. UH, there will
Speaker 4: be opportunities to do that, and I do think that
Speaker 4: some of the work that we talked that we just
Speaker 4: talked about in FinTechs, I think it's appropriate for us
Speaker 4: to look at figuring out how do we spark more
Speaker 4: innovation in the fintech space so that we can close
Speaker 4: that ecosystem. So investing in technology and in businesses that
Speaker 4: are in that space would make a lot of sense
Speaker 4: for us. But what makes the technology we're talking about it?
Speaker 4: You have to be able to in a post COVID
Speaker 4: world where you know, nobody's walking in a bank to
Speaker 4: do anything right now unless you just have have to.
Speaker 4: We have to be able to get a concierge level
Speaker 4: of banking, so that right now, where you're sitting at
Speaker 4: wherever you are right now, if you decide that, hey,
Speaker 4: you know what, I'm just going to go ahead and
Speaker 4: buy his second house in New Orleans. I need to
Speaker 4: just figure this out. We have to provide the concierge
Speaker 4: level of banking so you don't feel like you're on
Speaker 4: your own. That technology needs to be seamless, but it
Speaker 4: still has to have real people working with you. Only
Speaker 4: four percent of African Americans use Small Business Administration loans
Speaker 4: and that's government guaranteed loans. That's the easiest way of
Speaker 4: getting loans for businesses that have a hard time in
Speaker 4: the dead field. Only four percent. And I used to
Speaker 4: I was at SBA. You know, I was the regional
Speaker 4: administrator for SBA for the Southeast United States. At the
Speaker 4: end of the day's that is one of the biggest
Speaker 4: strategies we have out here because we're not getting access
Speaker 4: to these resources. But I get why people don't do it.
Speaker 4: It seems like a headache. Nobody wants to deal with it.
Speaker 4: You have to create. JP Morgan gives a fifty million
Speaker 4: dollar customer is what we give a fifty thousand dollars
Speaker 4: customer redemption that level of handholding, working with you every
Speaker 4: step of a way to make sure you get access
Speaker 4: to the products and services. So what we invest in
Speaker 4: is like we take these deposits that people that these
Speaker 4: big corporations are giving us, and then we turn them
Speaker 4: into loans and opportunities, whether it's your home loan, your
Speaker 4: business loan, your faith based organization loan. We create debt
Speaker 4: based opportunities. And when it comes to investing, it is
Speaker 4: critically important for us to look at investing at any
Speaker 4: business that closes the racial wealth gap and secures the
Speaker 4: ecosystem for black wealth. If anybody's in that space, then
Speaker 4: absolutely that's something Redemption should be looking at investing in.
Speaker 5: So the numbers are staggering, right, like you said in
Speaker 5: the sixties, is one hundred and thirty five black banks
Speaker 5: about the early two thousands dot com bubble with down
Speaker 5: to forty seven today, were roughly about sixteen to seventeen
Speaker 5: of those banks. However, inside of that sixteen to seventeen,
Speaker 5: I don't know how many of them manage over a
Speaker 5: billion dollars, Right, So there's one, Yeah, there's one that
Speaker 5: manages over a billion dollars. How do we get the clientele,
Speaker 5: the corporate accounts, the customers is with that high net
Speaker 5: value to be part of Redemption Bank? Like, what's the
Speaker 5: marketing plan? What's the strategy to make sure we're getting
Speaker 5: this type of clientele so that we have enough money
Speaker 5: to now lend out to our community.
Speaker 4: Yeah, so just a little bit about how this banking works.
Speaker 6: Man.
Speaker 4: At the end of the day, because a lot of
Speaker 4: these banks are in low to modern income areas, regulators
Speaker 4: look at their loans and say they're risky. And now, honestly,
Speaker 4: historically this has been deemed as racist in many aspects.
Speaker 4: They grade out every loan and we see I've talked
Speaker 4: to black bank presidents that would tell me I got
Speaker 4: regulators coming in here grading my loans for a barbershops risky.
Speaker 4: When these people have never missed the loan, they paid
Speaker 4: on time, they've done everything I've asked them to do.
Speaker 4: But because they in this neighborhood, they get treated as
Speaker 4: though as risky. And what that means is if that
Speaker 4: loans for one hundred thousand dollars, then the regulator tells
Speaker 4: that bank you need to keep one hundred thousand dollars
Speaker 4: of cash in your reserve because that loan may go under.
Speaker 4: Now what that means is that you got to keep
Speaker 4: that one hundred thousand dollars and it's not on the
Speaker 4: street making money anymore. You got to hold you got
Speaker 4: to hold it. So what we do to get around that,
Speaker 4: what we're going to be able to do is say, look,
Speaker 4: you know, we're going to cast a wider net. See,
Speaker 4: most black banks are CDFIs. They're highly concentrated in cities,
Speaker 4: in regional areas. We're choosing not to be a CDF
Speaker 4: five because unfortunately cdfives are too often equated to nonprofits
Speaker 4: and they have all these restrictions. Don't get me wrong,
Speaker 4: they do the really hard work. They are mission driven. However,
Speaker 4: not taking that label and just being a straight up bank,
Speaker 4: you get an opportunity to play across the country. You
Speaker 4: get an opportunity to recruit across the country. And this
Speaker 4: bank was built by black entrepreneurs, and I think that's
Speaker 4: the biggest difference having a bank that eighty five percent
Speaker 4: of our black investors are entrepreneurs, doctors, lawyers, you know,
Speaker 4: hedge fund folks, private equity people. We got one pitch,
Speaker 4: Let's build a bank we actually use. That's something. Let's
Speaker 4: build a bank that you, me and everybody who wants
Speaker 4: to bank black will actually use. Now we can all
Speaker 4: have a conversation about why we don't bank black now,
Speaker 4: and we know what those reasons are, well, let's alleviate
Speaker 4: those reasons by creating a bank that gives me the
Speaker 4: service I need and the access to credit I need.
Speaker 4: How I need it to make sure my business grow.
Speaker 4: If we can do that, then naturally I believe that
Speaker 4: black people will support black owned banks. But if you can't,
Speaker 4: you can't make that up. You got to show up
Speaker 4: with the services. We don't give each other a pass.
Speaker 4: How many how many of us got black bank cards
Speaker 4: in our wallet but may not even use them? And
Speaker 4: then their study at Stanford a while back that showed
Speaker 4: that sixty four percent of black people said they would
Speaker 4: automatically go move to a black bank if they felt
Speaker 4: they got the services that they could get at a
Speaker 4: white bank. We gotta beat that threshold. We have to
Speaker 4: be able to be competitive even to get our.
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Speaker 1: An illegal alien from Guatemala charged with raping a child
Speaker 1: in Massachusetts. An MS thirteen gang member from El Salvador
Speaker 1: accused of murdering a Texas man of Venezuelan charged with
Speaker 1: filming and selling child pornography in Michigan. These are just
Speaker 1: some of the heinous migrant criminals caught because of President
Speaker 1: Donald J. Trump's leadership. I'm Christine Noman, the United States
Speaker 1: Secretary of Homeland Security. Under President Trump, attempted illegal border
Speaker 1: crossings are at the lowest levels ever recorded, and over
Speaker 1: one hundred thousand illegal aliens have been arrested. If you
Speaker 1: are here illegally, your next you will be fine nearly
Speaker 1: one thousand dollars a day, imprisoned and deported, you will
Speaker 1: never return. But if you register using our CBP home
Speaker 1: app and leave now, you could be allowed to return legally.
Speaker 1: Do what's right. Leave now under President Trump America's laws
Speaker 1: border and families will.
Speaker 2: Be protected sponsored by the United States Department of Homeland Security,
Speaker 2: Home People support and that's fine.
Speaker 4: I'm okay with it. I'm not afraid of competing. That's
Speaker 4: exactly why we're doing this in Utah so we can
Speaker 4: have access to the resources in a regulatory environment so
Speaker 4: that we can compete. I don't want you come to
Speaker 4: be just because I'm back. Once you come because I'm the
Speaker 4: best of what I do and you believe in what
Speaker 4: we're doing, because we want to be the best for us.
Speaker 6: I think over the last twenty years banks have been
Speaker 6: in a crisis. This year, mid size and small banks
Speaker 6: have been falling apart on publicanas, trade to market. What
Speaker 6: are some of those services that people need and what
Speaker 6: do you think banks can do better if I'm being
Speaker 6: honest to have our trust, because when I talk about
Speaker 6: a lot of banking stocks on the show, not many
Speaker 6: people say that they trust banks, and for a multitude
Speaker 6: of reasons. Can you address, like what you're going to
Speaker 6: do to build those kind of relations where they do trust?
Speaker 6: And then what do you think some of those services
Speaker 6: that people would need to make us want to bank
Speaker 6: with you.
Speaker 4: You know the distrust of African Americans and the banks
Speaker 4: has been since the since right after the Civil War.
Speaker 4: W the Boys said it the best when the Freeman's Bureau,
Speaker 4: which was created for free people, ended up being a
Speaker 4: Ponzi scam and deleting ninety percent of all black wealth.
Speaker 4: When that bank closed, nobody got to refund, nobody got
Speaker 4: to io you. It was just gone. WB the Boys said,
Speaker 4: it would have been better off if we had to
Speaker 4: remain slaves for another decade, then to suffer the ramifications
Speaker 4: psychologically of losing all of our money in a federal
Speaker 4: bank that the government created, and we are the children
Speaker 4: of that distrust. We're still here and the trust is
Speaker 4: still real. So it starts with the fact of who's
Speaker 4: running the bank. Can you put faith in these people
Speaker 4: that run the bank? And then two, when it comes
Speaker 4: down to making a decision. I know, we got laws
Speaker 4: that's supposed to say it's anti discriminatory, you should not
Speaker 4: use race in a negative way. But the numbers are
Speaker 4: the numbers. We have to be able to think outside
Speaker 4: of the box. Because I'm gonna tell you right now,
Speaker 4: as long as we rely on credit scores in this
Speaker 4: country as a primary indicator of who's worthy of owning
Speaker 4: anything or getting access to credit, we will fundamentally have
Speaker 4: a racist system. So the future of banking has to
Speaker 4: be around looking at people more than a credit score.
Speaker 4: The future of banking has to be able to see
Speaker 4: people from cash flow. And you and I know dealing
Speaker 4: with black entrepreneurs. Ninety percent of us are sold entrepreneurs,
Speaker 4: and a lot of them just go straight cash because
Speaker 4: they don't for the exact reasons. They'd rather just be
Speaker 4: a cash based business than go into debt. But that
Speaker 4: doesn't mean they're not good at what they're doing. They're
Speaker 4: actually slowing themselves down by not leveraging credit. But if
Speaker 4: we could go to them and show them, look, the
Speaker 4: decisions will be based off of more than this algorithm.
Speaker 4: And that algorithm that experience Echo Facts and TransUnion put
Speaker 4: out there says that fifty percent of black people shouldn't
Speaker 4: be trusted. That's what it says, and so any system
Speaker 4: that possibly could believe the fifty percent of us shouldn't
Speaker 4: be trusted to get along, that system shouldn't be trusted.
Speaker 4: So we must be at the forefront, all of us
Speaker 4: who are in this space and moving our people away
Speaker 4: from these antiquated algorithms that talk about credit scoring in
Speaker 4: a way that limits our ability to have full access
Speaker 4: to this capitalist economy.
Speaker 3: So, okay, when doctor Martin Luther King dicead it was
Speaker 3: one hundred and twenty banks, right, black banks on hundred
Speaker 3: and thirty five, one hundred and thirty five yep, And
Speaker 3: now there is twenty right, So that's pretty disturbing. So
Speaker 3: a how come that isn't something that people have talked
Speaker 3: about a lot? And why has that drastic Because I'm
Speaker 3: at this point is probably going to be zero if
Speaker 3: this trend continue in the next thirty years, that there's
Speaker 3: not gonna be any any black owned banks at all.
Speaker 3: So what is the root cause for the for the
Speaker 3: collapse of black banks? And why has it anybody really
Speaker 3: been champion that?
Speaker 4: Look, that's a great question. A dear friend of ours, Mersa,
Speaker 4: wrote the book Color of Money. If you want to,
Speaker 4: if you're out here right now, you want to read
Speaker 4: the history of all this, The Color of Money, black
Speaker 4: banks and closing the racial wealth gap, take a look
Speaker 4: at it. Give her a shout out. She did an
Speaker 4: amazing book there. But let me give you some personal
Speaker 4: history here. My family started a black bank in nineteen
Speaker 4: thirty six in Georgia, South Georgia Baker Byromville. This bank
Speaker 4: was started by my great great grandfather and his brother
Speaker 4: in law, and it was built for the fact of
Speaker 4: they wanted to create a bank that could finance sharecroppers
Speaker 4: to buy the land that they were sharecropping on. Because
Speaker 4: everybody knew that when slaves left and started sharecropping that
Speaker 4: ten percent was just a way to stay alive long
Speaker 4: enough to keep working. But we created a bank that
Speaker 4: could finance them buying the land that they were formerly
Speaker 4: slaves on, and these sharecroppers could go and create prosperous
Speaker 4: lives and it worked. Now. That bank ran from nineteen
Speaker 4: thirty four, and in nineteen thirty four it was about
Speaker 4: one hundred and eighty black banks. There was a tremendous
Speaker 4: amount of black banks. We went out. We lost that
Speaker 4: bank in nineteen seventy six. We lost that bank in
Speaker 4: seventy six because the American economy declined right after Vietnam War.
Speaker 4: Everything was economically trash. Really a lot of hints of
Speaker 4: where we are right now. But we were forced We
Speaker 4: were forced out. It wasn't like we just closed because
Speaker 4: we didn't have business. The bank closed because regulators were
Speaker 4: over regulating black banks and not giving us the same
Speaker 4: treatment as they were giving white banks. The regulators at
Speaker 4: the end of the day, all the police at the
Speaker 4: end of the day, they are the police of the industry.
Speaker 4: And we all know policing is different in different neighborhoods.
Speaker 4: In our neighborhood with the black banking neighborhood, traditionally, those
Speaker 4: regulators have been harder on black banks, not making them
Speaker 4: have the capital requirements that white banks had, and forcing
Speaker 4: us in the situations where ultimate, my family's bank was
Speaker 4: forced to auction. Now because we're making money, we got
Speaker 4: forced to auction, like literally auctioned off. And we know
Speaker 4: what that looks like in the Deep South, right, And
Speaker 4: ultimately that our black bank was auctioned off and got
Speaker 4: rolled up into what we call now P and C Bank.
Speaker 4: That's the story of America.
Speaker 3: So your bank got turned in to P and C Bank, right.
Speaker 1: An illegal alien from Guatemala charged with raping a child
Speaker 1: in Massachusetts. An MS thirteen gang member from Al Salvador
Speaker 1: accused of murdering a Texas man of Venezuelan charged with
Speaker 1: filming and selling child pornography in Michigan. These are just
Speaker 1: some of the heinous migrant criminals caught because of President
Speaker 1: Donald J. Trump's leadership. I'm Christy Noman, the United States
Speaker 1: Secretary of Homeland Security. Under President Trump, attempted illegal border
Speaker 1: crossings are at the lowest levels ever recorded, and over
Speaker 1: one hundred thousand illegal aliens have been arrested. If you
Speaker 1: were here illegally, your next you will be fine nearly
Speaker 1: one thousand dollars a day, imprisoned and deported, you will
Speaker 1: never return. But if you register using our CBP home
Speaker 1: app and leave now, you could be allowed to return legally.
Speaker 1: Do what's right. Leave now. Under President Trump, America's laws,
Speaker 1: border and families will be protected.
Speaker 2: Sponsored by the United States Department of Homeland Security.