Greenwood, a digital banking platform aimed at Black and Latinx communities, has secured $40M in Series A funding after securing a $3M seed round in October. The platform has gathered 500,000 signups since October when its waitlist opened.

Why should we care?
Greenwood’s support from a range of incumbent banking players indicates a growing recognition of the need to offer underserved customers safe, affordable, and accessible banking and financial products. The list of funders who participated in the round reads like a who’s who of the established banking industry: Truist Ventures, the venture capital arm of Truist Financial, led the round, with participation from Bank of America, Citi, JPMorgan Chase, Wells Fargo, PNC, Mastercard, and Visa. Chairman Ryan Glover said in an interview that the firm will “create non-predatory lending products, circulate capital into our communities, [and] deploy capital to deserving individuals in the community.” The company was founded by civil rights activist Andrew J. Young; rapper and activist Michael "Killer Mike" Render; and Glover, who is founder of the Bounce TV Network. Greenwood, which hasn’t yet announced its partner bank, says it will launch jointly branded bank accounts with Black-owned banks and offer loans for minority entrepreneurs. “Our investment in Greenwood is reflective of our purpose and commitment to advancing economic empowerment of minority and underserved communities,” said Truist Chief Digital and Client Experience Officer Dontá L. Wilson, who oversees Truist Ventures.