One of the few Black-owned banks in the United States has launched a new debit card initiative aimed at helping single mothers living in government-assisted housing break the cycle of poverty.
Redemption Bank unveiled the Bank King Card on Friday in observance of Juneteenth, with the institution pledging to direct donations from every new account opened to nonprofit organizations that provide direct financial assistance to struggling families.
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According to Ashley Bell, chairman and chief executive officer of Redemption Holding Co., the initiative is designed to create a new model of community-focused banking.
“Bank 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’s vaults of opportunity that have been closed to too many for too long,” Bell said.
The program comes amid growing concerns about the economic challenges facing single mothers. A 2026 report by the Urban Institute and the Jeremiah Program found that households headed by single mothers continue to face significant financial and caregiving burdens.
Redemption Bank, headquartered in Holladay, Utah, said donations linked to Bank King Card accounts will be set annually by its board of directors and will not depend on how much cardholders spend. Nonprofits providing direct cash assistance will be able to apply for grants through a foundation established to ensure funds reach families most in need.
Bell pointed to guaranteed-income programs across the United States as evidence that direct financial support can help women and children achieve greater stability.
Jeremiah Program president and chief executive officer Chastity Lord said direct cash assistance provides more than financial relief.
“It provides dignity,” Lord said. “It 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.”
Several existing programs have demonstrated the impact of direct assistance. In Ohio, the Ohio Mother’s Trust provided 32 single mothers with US$500 monthly for one year. Recipient Juanita Amakor said the support helped her pay rent, catch up on bills, and ease financial stress while caring for her seven-year-old daughter.
“It’s the breathing room it gives you, knowing there is something extra coming in,” she said.
In Michigan, the Rx Kids initiative provides expectant mothers with US$1,500 during pregnancy and US$500 monthly during the first months after childbirth. Flint resident Kinea Wright said the assistance proved invaluable after her husband suffered a workplace injury.
“It was a blessing in disguise,” she said.
Redemption Holding Co. made history last year when it acquired Utah-based Holladay Bank & Trust, becoming the first bank in the western United States to be owned by a Black-led investment group. At the time of the acquisition, the bank held approximately US$65 million in assets and focused primarily on commercial and small business lending.
Among the institution’s co-founders is Bernice A. King, the youngest daughter of civil rights leader Dr. Martin Luther King Jr., who serves as senior vice president.
“Economic opportunity must be practical, accessible and rooted in the needs of families,” King said. “Bank 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.”
The bank also announced plans to introduce a Bank King Card credit card with interest rates capped at 12 percent.
The launch coincides with Juneteenth, the federal holiday commemorating June 19, 1865, when enslaved African Americans in Galveston, Texas, learned of their freedom more than two years after President Abraham Lincoln signed the Emancipation Proclamation. President Joe Biden officially recognized Juneteenth as a federal holiday in 2021.
