Netflix announced on Tuesday (June 30) that it would invest $ 100 million in black banking institutions to close the racial wealth gap.
The idea is a market-based solution that enables underfunded banks that serve historically marginalized communities to invest in local entrepreneurs and families.
According to the New York Times, the streaming service announced plans to transfer 2% of its cash or an estimated $ 100 million to black-owned financial institutions and community development organizations that have a better track record of lending to minority borrowers than the mainstream Consumer banks.
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The first deposit goes to New York-based Local Initiatives Support Corporation, a development finance company with 35 offices across the country that supports black entrepreneurs in a variety of businesses, and Hope Credit Union, which funds underserved communities in the south.
"We believe that more capital can be brought into these communities, which can make a significant difference for the people and businesses in them. It helps more families to buy their first home or save for college, and more small businesses can start up or grow, "Netflix said in a statement.
The plan was worked out last April, according to the Times, but has become even more urgent following recent protests against police violence and calls for an end to systemic racism.