First Independence Bank Becomes the First Black-Owned Bank in the Twin Cities

April 25, 2022-Written by S.J.

The Twin Cities is now home to a Black-owned bank. First Independence Bank opens the doors of its Minneapolis location on Tuesday, April 26, at which point it will become the first and only full-service, Black-owned bank in the area–and one of only 17 in the country.

First Independence Bank, which was established in 1970, is headquartered in Detroit, Michigan. It is the 7th largest Black-owned bank in the United States, as well as a minority depository institution–of which there are just 144 nationwide.

The bank’s flagship Minneapolis branch is located on University Avenue in Prospect Park. A second location is set to open this June on Lake Street and Hiawatha Avenue.

First Independence’s mission “is to be a beacon for capital accumulation for individuals and business entities by delivering financial services with an affinity for under-served and minority communities.”

First Independence was founded on the heels of Detroit’s 1967 rebellion. Black leaders in the city sought to create more opportunities for members of the Black community, who were suffering from a lack of resources and the ever-present effects of systemic racism.

The bank’s Chief Executive Officer, Kenneth Kelly, has been very vocal about the parallels between First Independence’s founding and the current racial inequities and injustices in Minneapolis. The website outlines, “Kelly recognizes a similar quest for social justice is now ushering in the opportunity for expansion into a region that was recently rocked by calls for racial justice after the killing of George Floyd.”

Kelly insists the new Minneapolis branch will be accessible and inclusive, “This branch will be located in a key site in the community where it is visible and accessible to all in the Twin Cities.” He continued, “We look at the fact that it is close to both the Metro Green Line and bus routes so that under-resourced and unbanked members of the community can easily reach us and use our services to improve their financial outlook.”

First Independence’s local branches will be headed up by Senior Vice President for the Twin Cities Regional Market, Damon Jenkins. Jenkins is a native of Minneapolis and a graduate of the University of Minnesota. He spent almost 15 years working in leadership positions at both Wells Fargo and U.S. Bank before joining the team at First Independence.

Speaking of Wells Fargo and U.S. Bank, both financial institutions have recently been criticized for alleged acts of discrimination.

Wells Fargo is currently facing several lawsuits as a result of discriminatory mortgage lending practices. A report by Bloomberg, which compiled data from mortgage refinancing applications, found that Wells Fargo only approved Black applicants at a rate of 47%, significantly lower than both the bank’s 72% approval rate for white applicants as well as the national average. Read the full story here.

Meanwhile, two Minnesota U.S. Bank branches made the news after calling the police on innocent Black customers and falsely accusing them of crimes.

First Independence hopes to help change that narrative. Kelly began planning for the bank’s Minneapolis branches in 2021, after meeting with Black leaders in the area, “...it was important to me to listen to these leaders about what the community needs and how the bank could make a difference,” Kelly stated. “They welcomed me generously and offered important guidance. As a result, housing will be a major focus for First Independence Bank in the Twin Cities. Our innovative home loan programs will help reduce one of the largest disparities in the country between Black and white homeowners.”

First Independence will host a grand opening celebration at their University Avenue branch on Tuesday beginning at 10am. The address is 3430 University Ave SE, Minneapolis, MN, 55414.