FinTech News
Greenwood Acquires Fellow Neobank Kinly
Two banking startups are joining forces to further their mission of helping Black America build generational wealth. Earlier this month, Greenwood announced its acquisition of Kinly. According to a press release, the transaction will bring “the two largest FinTechs focused on the Black community together as one company.” Moreover, with 300,000 Kinly members joining Greenwood, the combined neobank will have more than 1 million members.
About Greenwood and Kinly:
Greenwood is a neobank with a focus on Black and Latino customers. Founded by Andrew J. Young, Ryan Glover, and Michael Render (better known as Killer Mike), the platform not only offers digital checking and savings accounts but also enables community reinvestment. For example, customers can opt into round-ups, with the donated change going to UNCF and NAACP. Since Greenwood is not a bank itself, the company partners with Coastal Community Bank to provide its services.
Meanwhile, Kinly is another neobank “Built for Black America.” With a Kinly checking account, customers enjoy fee-free ATM access (via the Allpoint network), up to $100 in overdraft protection with eligible direct deposit, and more. Additionally, the platform features financial education resources. Kinly partners with The Bancorp Bank for its financial services.
What they’re saying:
Announcing the acquisition of Kinly, Greenwood’s CEO and co-founder Ryan Glover said in a statement, “Kinly has always shared in our commitment to building a more transparent banking experience for Black Americans. The acquisition of Kinly represents a massive milestone for Greenwood as we continue in our shared effort to elevate financial tools available for our community.” Glover added, “In partnership with Donald Hawkins from Kinly, we plan to grow our footprint and expand our services to provide best-in-class experiences for Black and brown families and businesses.”
Additionally, Hawkins said, “Kinly’s mission of financial empowerment and wealth-building stems from lessons learned from Black America’s history. The needs of our communities are many and I couldn’t be more excited to combine efforts with Greenwood to create lasting generational change.”
My thoughts:
For years, niche neobanks have been a growing FinTech trend. Unfortunately, as several shuttered services show, finding success in some of these niches can be difficult — especially when startups need to pivot from running on venture capital to bringing in revenue. With that in mind, it makes perfect sense that services like Greenwood and Kinly that have complementary missions would join forces rather than compete with one another. Given the promise that Greenwood has already shown on its own, surely this move will only help to further propel the neobank, allowing it to continue supporting the Black community and its allies.
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