An online business banking platform targeting Black and Brown Americans has acquired a private membership club for Black professionals with the intention of empowering people of African descent to invest in entrepreneurship, generational wealth, and financial literacy.
Greenwood, a digital banking platform founded by rapper/activist Killer Mike, media executive Ryan Glover, and Andrew Young, former U.S. ambassador to the United Nations and mayor of Atlanta, has acquired The Gathering Spot. The Gathering Spot is an elite membership network for Black professionals and entrepreneurs. Membership fees range from $100 to $250 per month.
“Minorities continue to face a lack of financial inclusion and tools. Both Greenwood and The Gathering Spot have been leading conversations on access to capital and the power of minority financial inclusion. This moment marks a significant milestone for the culture and strength within the community,” Greenwood co-founder and Chairman Ryan Glover said in a press release. “The combined efforts of Greenwood and The Gathering Spot will expand the collective power of minorities to impact the wealth gap.”
It’s no secret that wealth inequality impacts Black and Latino Americans at a higher rate than their white counterparts. The median African-American household’s net worth is $3,400 while their white peers possess $140,500, according to economist Edward Wolff, professor of economics at New York University and research associate at the National Bureau of Economic Research.
And that’s not all. According to the Economic Policy Institute, 25 percent of Black American households have zero or a negative net worth while only 10 percent of White families face these same challenges.
Greenwood’s acquisition of The Gathering Spot provides a unique opportunity to educate and inform Black Americans on topics such as financial literacy, home ownership, insurance and entrepreneurship.
“The future of finance is community. The Black community has been a cultural leader for a long time. It makes sense that it now becomes more of a leader in business and in the future of finance,” Paul Judge, board member at Greenwood said in a press release. “It is an important milestone to have two black-owned companies on both sides of an M&A transaction. It brings a new meaning to the term ‘black-on-black’.”
Greenwood says it has more than 30,000 account holders, a waitlist of over 800,000 and an estimated $40 million in assets, according to The Wall Street Journal.
As a private networking club for more than 12,000 Black professionals and entrepreneurs, The Gathering Spot brings together executives and entrepreneurs from companies such as Accenture, Apple, Goldman Sachs and Microsoft with creatives and entertainers. The organization hosts a variety of special events and services in key locations. Its flagship clubs in Atlanta, Washington, D.C., and Los Angeles feature a workspace, meeting areas, event space, a restaurant, and a bar.
“The Gathering Spot prides itself on building an intentional community, one where we can celebrate each member and connect them to the resources and networks they need to build on their successes,” Wilson said. The acquisition by Greenwood will help empower The Gathering Spot members and give them tools to “build opportunity and generational wealth.”