One of the few Black-owned banks in the United States is introducing a debit card aimed at helping single mothers who live in government-subsidized housing escape poverty.
The Bank King Card debit card will be offered beginning Friday in honor of by Redemption Bank, which will make a donation from every account opened to nonprofits that will steer the funding to needy families.
鈥淏ank King Card represents a new regenerative banking model that starts with investing in mothers who are a few hopeful dollars away from breaking out of poverty, and opening up America鈥檚 vaults of opportunity that have been closed to too many for too long,鈥� Redemption Holding Co. chair and Chief Executive Ashley Bell said.
A 2026 report by the Urban Institute and the Jeremiah Program says households led by single mothers experience widespread economic and caregiving hardship.
Redemption Bank, based in Holladay, Utah, says it intends to make fixed-amount donations based on new Bank King Card account openings. The amount will be determined annually by the bank鈥檚 board of directors and will not be based on the amount of card purchases, according to Redemption Bank.
Nonprofits that provide direct-cash services would apply for grants through a foundation developed to make sure the money gets to those who need it most.
鈥淲hat we鈥檝e seen is these guaranteed income programs have been a jolt out of poverty for women around the country, including many women of color,鈥� Bell said.
Every dollar helps
Money given directly to needy mothers and children is overwhelmingly spent to cover necessary goods or services, according to Chastity Lord, president and chief executive of the Jeremiah Program, which works to improve economic mobility for single mothers.
But it also does so much more, she said.
鈥淚t provides dignity,鈥� Lord continued. 鈥淚t ensures summer learning, not leaving kids at home. It increases nutrition. It allows the mom to make powerful decisions that benefit their children and their families instead of making decisions to just get by.鈥�
A pilot program through the funneled $500 each month for a year to 32 single mothers in the Columbus, Ohio, area.
For Juanita Amakor of Columbus, the cash she received through the Ohio Mother’s Trust allowed her to catch up on bills and pay rent.
鈥淚t’s the breathing room it gives you, knowing there is something extra coming in. It relieves a lot of anxiety,鈥� said Amakor, 36, who has a 7-year-old daughter. 鈥淭his help goes a long way, even if it was for something as little as being able to take my child to the grocery store, to the clothing store.鈥�
In gives women a one-time allocation of $1,500 during pregnancy, followed by $500 per month throughout the child鈥檚 first months. The $1,500 can be used on food, prenatal care, rent, cribs or other needs. The $500 monthly stipend can be spent on formula, diapers or childcare.
Kinea Wright and her family received funding through the Rx Kids program in Flint. It helped with some bills, diapers for her newborn daughter and other needs, especially after her husband was injured in a forklift accident.
鈥淚nitially, (the money) was put up for a rainy day,鈥� said Wright, 46. 鈥淚 didn’t know the rainy day would come sooner than we thought. It was a blessing in disguise.鈥�
Juneteenth connection
A year ago, Redemption Holding Co. of Utah-based Holladay Bank & Trust, making it the first time a bank has been owned by a Black-led investment group in the Western U.S.
At the time, Redemption Bank had roughly $65 million in assets. It primarily focuses on commercial lending and small business loans. Bernice A. King, the youngest child of the Rev. Martin Luther King Jr., is a co-founder and senior vice president of the bank.
鈥淓conomic opportunity must be practical, accessible and rooted in the needs of families,鈥� King said. 鈥淏ank King Card is an innovative way to support that work. It creates a practical opportunity for people to align their financial choices with their values while supporting mothers, children and families working toward long-term stability.鈥�
A Bank King Card credit card is expected to be introduced later with interest rates capped at 12%.
The announcement of the Bank King Card coincides with , which also is the one-year anniversary of Redemption’s acquisition of Holladay Bank & Trust.
Juneteenth 鈥� which combines 鈥淛une鈥� and 鈥渘ineteenth鈥� 鈥� represents the date in 1865 when enslaved people in Galveston, Texas, learned they had been freed. It came two years after President Abraham Lincoln鈥檚 Emancipation Proclamation. In 2021, President Joe Biden designated it a federal holiday.
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Corey Williams is a member of AP’s Race & Ethnicity team.
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