|Netflix today announced a $10 million Transformational Deposit in Hope Credit Union as one of the first investments in a $100 million initiative to build economic opportunity in Black communities. The investment is among the first made by Netflix in financial institutions and other organizations that directly support Black communities in the U.S.
The Netflix investment in HOPE will be in the form of a Transformational Deposit. In each Deep South state served by HOPE, for every dollar in net worth held by white households, Black households hold between ten and twenty cents. Through Transformational Deposits, HOPE imports funds into these capital-starved communities to make business, mortgage and consumer loans and provide other financial services that build wealth and foster economic mobility. Over the next two years, HOPE estimates the Netflix deposit will support financing to more than 2,500 entrepreneurs, homebuyers and consumers of color.
“Left unchecked, America’s unsustainable racial wealth gap will get even wider,” said HOPE CEO Bill Bynum. “On a per capita basis, financial institutions owned or led by people of color are the most effective way to fuel economic mobility and prosperity for people and places from which wealth has been extracted for generations. If other companies followed Netflix’ example, hundreds of billions could be invested toward closing debilitating opportunity gaps that create division and limit America’s immense potential.” According to the FDIC, roughly six out of 10 people living in the service area of Black owned banks are Black, in contrast to six out of 100 for banks that are not Black-owned.
Companies and individuals interested in making a Transformational Deposit in HOPE can learn more at https://www.hopecu.org/transform.
View coverage of the Netflix Transformational Deposit
Wall Street Journal