Banks

What makes a good on-line bank? Speed of service, for one thing. The site should load quickly and smoothly. Customer service should be exceptional. Operators should be standing by, literally. We are, after all, taking about your money here. Other things to check:

  • Does the bank offer insurance against on-line theft? In general, what type of security safeguards does the bank use?
  • Does the bank charge a fee for online deposits and withdrawals?
  • How soon after making a deposit are funds available?
  • Is there an on-line account setup fee?
  • What ATM network does the bank subscribe to? Is this network active in your area? What does the bank charge for ATM transactions?
  • Can you download bank statement data into Quicken, MS Money or other personal financial software?

Having said that, here are our choices for the best banking sites for minorities and women....

Bank of America On-Line

The site is a little confusing, but it loads quickly. The bank offers services in:

  • Payroll Services;
  • Tax Services;
  • Merchant Reporting;
  • In 2005, according to the Greenlining Institute, the bank made $24,288,800 in Small Business Administration (SBA) loans to African Americans (out of almost $177 million in SBA loans). While this is a pittance, it is more than most other banks lent to African Americans that year.

    In the interest of full disclosure, I should tell you two things:

    1.) I used to work for a former Bank of America Board member. (Emphasis on former.) Bank of America also bought Merrill Lynch, Pierce, Fenner & Smith Incorporated, ANOTHER firm I used to work for.

    2.) I met the current Chairman of the Board of Bank of America at a seminar on Corporate Social Responsibility. He made all the right noises. Time will tell if he is able to make the bank a better corporate citizen.

    These factors do not, however, color my rating.

Forty one percent (41%) of Bank of America's employees are minority. Sixty percent (60%) are female. (As we said with respect to Wells Fargo, given the subprime mess, we know how little that means. But it's better than 0%.)

American Express Bank FSB

American Express Bank FSB is a credit card bank. They claim to have made 2,578,159 small business loans totaling $11,030,000,000. This MUST include loans made via credit card. Still, given these numbers you should look into them. The site is a little hard to navigate, however. We suggest you call 1-800-446-6307 to inquire about a loan.


A Word on Wells Fargo


We picked Wells Fargo as the best bank for minorities and women several years ago, probably handing them several million dollars in referral business (BTW, we are not compensated by any of these banks). Wells Fargo USED to be a good bank, but, according to recent news reports, "(Wells Fargo)..set up a special sales office to steer risky subprime loans to residents in Prince George's County, Baltimore city and other predominantly black communities..Wells Fargo Bank employees allege in a lawsuit. According to the sworn statements by two former loan officers filed June 1 in U.S. District Court of Maryland as part of a lawsuit being pursued by the City of Baltimore against Wells Fargo alleging discriminatory and predatory lending, bank employees targeted black neighborhoods and churches for the escalating-interest mortgages, which some in the office called 'ghetto loans.' This problem was not limited to Maryland: In August, 2009, the State of Illinois filed a lawsuit against Wells Fargo & Co. accusing it of discriminating against black and Latino homeowners by employing racially biased lending practices.

Boy, were we wrong. They changed. Clearly, not a bank you want to do business with if you are a minority.

Other sites:

www.bankrate.com - Summary information: on-line banking.


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