Mighty Deposits Guide, 2023 Edition

A majority of the banking industry is owned and controlled by white individuals, mostly men. Supporting equity of representation within the banking industry starts with looking at ownership and control, and hence, Minority Depository Institutions, or MDIs.

Support for MDIs alone cannot address the racial wealth gap in the United States. But financial institutions are one part of the web of solutions, and hence supporting financial institutions with diverse ownership and governance is a necessary step.

What is an MDI?

Banks and credit unions that are majority-owned or majority-governed by people of color can receive the government designation of Minority Depository Institution (MDI). MDIs make up roughly 3% of all banks and 10% of all credit unions.

The government agencies that regulate and insure banks and credit unions (the FDIC and NCUA) note the importance of recognizing and encouraging the growth of these financial institutions, and oversee the MDI designation process.

MDIs are generally full-service banking options that focus on investing in different sectors and communities. In addition, they have the skill and expertise to provide services to POC, who can otherwise can be overlooked (or, historically, intentionally excluded) by institutions where POC do not hold representative control.

The lists linked in this article provide information regarding what different MDI banks or credit unions invest in, as backed by government data.

Qualifications to be a Minority Depository Institution

Banks and credit unions have different ownership structures. The requirements to be an MDI vary slightly across the two.

A bank can qualify as an MDI if (1) 51 percent or more of the voting stock is owned by minority individuals; or (2) a majority of the board of directors is minority and the community that the institution serves is predominantly minority. (The FDIC defines “minority” as any Black American, Asian American, Hispanic American, or Native American.)  (Source: FDIC) 

A credit union can qualify as an MDI if 50 percent or more of its current members, eligible potential members, and board members are Black, Asian, Hispanic, or Native American. (Source: NCUA)

Who can bank with an MDI bank or credit union?

Anyone can bank with an MDI bank or credit union. The MDI designation just lets prospective and current customers know that the bank or credit union is notable in being majority-owned and/or governed by POC, and hence has a lens and skillset for serving POC.

The MDI designation is an additional piece of information about a bank. Consider it additive information to learning more about your full-service banking options.

How many MDI banks are in the US?

As of 2022, there are 143 MDI banks located across the 20+ states, the District of Columbia, Puerto Rico, and Guam. Though most are considered community banks -- assets totaling below $10 billion -- the largest MDI banks top $50 billion in total assets.

Number of MDI Banks by Category:

• Asian or Pacific Islander American: 73

• Black or African American: 19

• Hispanic American: 31

• Multi-racial American: 2

• Native American or Alaskan Native American: 18

How many MDI credit unions are in the US?

As of 2022, there are 509 MDI credit unions located across 30+ states, the District of Columbia, Puerto Rico, and the U.S. Virgin Islands. Many MDI credit unions are small, with less than $10 million in total assets; the largest MDI credit union holds $3.7 billion in total assets. Many MDI credit unions qualify for multiple minority categories.

2023 lists of Minority Depository Institutions

Some (but not all) banks and credit unions designated as MDIs are open to customers from across the U.S., so customers can open and manage accounts entirely online. Ask individual banks or credit unions to confirm customer eligibility.

Asian American MDI Banks: List and map

Asian American MDI Credit Unions: List and map

Black American MDI Banks: List and map 

Black American MDI Credit Unions: List and map

Hispanic American MDI Banks: List and map

Hispanic American MDI Credit Unions: List and map

Native American MDI Banks: List and map

Native American MDI Credit Unions: List and map

Search the entire database of banks or credit unions to find MDIs that offer what you’re looking for, whether that’s a mobile app, a commitment to not fund fossil fuels, small business loans, and more. 

How to bank or invest with MDI banks or credit unions

Banking with an MDI is an impactful action for individuals and organizations to take in support of a more diverse and representative banking system. One, because it demonstrates that customers want to see POC represented in ownership and governance roles within the banking system, and will move money to institutions that are able to offer this. Two, because banks and credit unions with POC in ownership and governance roles are more likely to serve POC effectively versus institutions without POC steering the bank’s business model and decision-making.

Ways to support an MDI:

• Open checking and savings accounts at an MDI (many MDIs offer online account opening). Keep in mind that one-time, stagnant deposit accounts can be costly for a bank to accept. Support an MDI by using them for all of your banking needs.

• Seek out loans and other financing from an MDI (use filters in our bank database or credit union database to find MDIs offering specific loan types)

• Invest in an MDI (equity capital allows MDIs to grow their capacity)

• Encourage your workplace to start a business banking relationship with an MDI (see guide for businesses looking to bank for impact)

POC-led banks that you can connect with right now

The banks below make it easy for people to connect with them via Mighty, whether to start an account application or ask a question