The challenger bank Tenth is looking to tap into the estimated $1.4trn spent by Black citizens in the US.
The startup, which has already issued a waitlist, is looking to erase the wealth gap between Black Americans by providing “legit financial education.”
In order to ensure that the money spent by Black Americans remain in their communities, Tenth will offer services like round-ups to support black colleges and universities, an in-app chat, a marketplace and tools to help customers keep track of their spending and help them reach their savings goals.
In regards to the name, the neobank explains, “In 1903, W.E.B. DuBois published a book called The Talented Tenth. His argument was to utilize the best negro minds (the Talented Tenth) to educate and lead the black community for the general uplift of all.
“Our name is derived from this great debate but has it’s own modern twist. We must be the change we want to see. It’s time for us all to become The Tenth!”
News about the bank comes just days after Barclays launched a new accelerator aimed at supporting black entrepreneurs.
Earlier this year, PayPal made a $530m commitment to support black and minority-owned businesses and communities across the nation.
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