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$198.91 0.7  0.4%

Last Trade - 07/05/21

Sector
Financials
Size
Large Cap
Market Cap £60.48bn
Enterprise Value £79.60bn
Revenue £12.10bn
Position in Universe 148th / 6858

Digital banking startup Greenwood raises $40 million from big banks

Thu 25th March, 2021 11:00am
By Anna Irrera
    March 25 (Reuters) - Atlanta-based Greenwood, a digital
banking startup designed for Black and Latino consumers and
businesses, said on Thursday that it had raised $40 million from
a host of U.S. financial institutions.
    They included Truist Financial Corp  TFC.N , JPMorgan Chase
& Co  JPM.N ,  Bank of America Corp  BAC.N  , Wells Fargo & Co
 WFC.N  and Citigroup Inc C.N .
    The startup will use the cash injection to build the
business, with plans to launch its first products this summer,
Ryan Glover, Greenwood's Chairman and co-founder said in an
interview. 
    PNC Financial Services Group Inc  PNC.N , Mastercard Inc
 MA.N , Visa Inc V.N , FIS, Banco Popular, as well as several
venture capital firms such as SoftBank's Opportunity Fund, also
participated in the round.
    First announced in October, Greenwood was created to provide
online banking services to help close the wealth gap faced by
Black and Latino communities in the United States. It plans to
offer services such as non-predatory loans, as well as the
ability for customers to round up purchases and donate what they
save to organizations aimed at advancing their communities.
    Greenwood is one of several digital banks that have emerged
over the past year focused on communities, a sector
traditionally underserved by the mainstream financial sector.
Other online banking startups include First Boulevard, Daylight
and Cheese. 
    Founded by entrepreneur Glover, alongside Civil Rights
leader Andrew J. Young and rapper and activist Michael “Killer
Mike” Render, Greenwood has signed up more than 500,000 users to
its waitlist since being announced.
    "This multi generational wealth gap problem will take an all
hands on deck solution," said Glover, noting that the startup's
mosaic of new large investors could help it advance its
ambitious goal. "It will take collaboration and community to
advance racial equality and financial empowerment." 
    The round was led by Truist Ventures, Truist's corporate
venture capital division. 

 (Reporting by Anna Irrera; Editing by Susan Fenton)
 ((Anna.Irrera@thomsonreuters.com; +1 646 223 4005 ;))
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