Netflix announced on Tuesday (June 30) that it would be investing $100 million in Black banking institutions in an effort to address the racial wealth gap.
The idea is a market-based solution that will allow underfunded banks serving historically marginalized communities to invest in local entrepreneurs and families.
According to the New York Times, the streaming service announced plans to deposit 2% of its cash, or an estimated $100 million, into Black-owned financial institutions and community development organizations, which have a better track record of lending to minority borrowers than mainstream consumer banks.
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The first deposit will go to New York-based Local Initiatives Support Corporation, a development finance company with 35 offices across the country that backs Black entrepreneurs across a variety of businesses, and the Hope Credit Union, which finances underserved communities in the South.
“We believe bringing more capital to these communities can make a meaningful difference for the people and businesses in them, helping more families buy their first home or save for college, and more small businesses get started or grow,” Netflix said in a statement.
According to the Times, the plan was hatched this past April, but gained even more urgency in the wake of recent protests against police violence and calls for the dismantling of systemic racism.