When most people think about banks, they picture large national names with thousands of branches. But across the United States, there’s a much smaller group of banks with a very different mission—serving communities that have historically been overlooked, including women and minorities.
These banks are often classified as Minority Depository Institutions (MDIs), and some of them are women-owned banks. While they don’t get much attention, they play an important role in expanding access to credit, small business funding, and financial stability.
Let’s break it all down in plain English.
What Is a Minority Depository Institution (MDI)?
A Minority Depository Institution, or MDI, is a bank or savings institution that meets specific ownership or leadership requirements set by federal regulators.
In the U.S., thousands of banks are insured by the Federal Deposit Insurance Corporation (FDIC). Only a small percentage of them qualify as MDIs.
A bank is considered an MDI if one of the following is true:
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At least 51% of the bank’s voting stock is owned by minority individuals, or
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Most of the bank’s board members are minorities, and the bank mainly serves a minority community
To count, owners must be U.S. citizens or permanent residents.
In recent years, regulators expanded this definition to include women-owned banks, recognizing that women are still underrepresented in financial leadership and face unique barriers to credit and wealth-building.
How Many Women-Owned Banks Are There?
As of early 2024, only 16 banks in the entire United States are officially classified as women-owned under federal standards.
That number may sound shockingly low—and it is.
One reason is that the definition of a “women-owned bank” is narrow. Simply having a female CEO doesn’t qualify. To earn the designation, women must own a majority of the bank’s voting shares or hold majority control at the board level.
There’s also no complete national list of women-owned credit unions, which makes tracking even more difficult.
A Brief History of Women in Banking
Early Barriers
Banking in the U.S. dates back to the late 1700s, but women were largely excluded from leadership—and even basic financial independence—for decades.
For much of American history:
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Married women couldn’t control their own property
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Women often couldn’t open bank accounts without a husband
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Credit cards and loans were denied based on gender alone
In fact, married women couldn’t legally get a credit card in their own name until 1974, even if they earned their own income.
The First Women Bank Leaders
Despite these barriers, some women still broke through.
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Deborah Powers founded a bank in New York in 1877 at age 87, making her the first woman in U.S. history to start a bank.
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Maggie L. Walker, the first Black woman to found a bank, opened St. Luke Penny Savings Bank in Virginia in 1903—during the height of segregation.
These women weren’t just bankers; they were community leaders creating financial access where none existed.
Social Change and the Rise of Women-Owned Banks
As women gained the right to vote, entered the workforce in larger numbers, and fought for civil rights, their presence in finance slowly increased.
Key moments that shaped progress include:
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The women’s suffrage movement
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The Civil Rights Act of 1964
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Second-wave feminism in the 1960s and 1970s
During this period, minority- and women-owned banks grew as communities realized that economic independence requires control over financial institutions.
Still, progress was uneven. Some early women-focused banks eventually rebranded or closed, often due to pressure to compete in a male-dominated financial system.
Why Defining a “Women-Owned Bank” Is Complicated
Unlike racial or ethnic minority groups, women are not a numerical minority in the U.S. That creates challenges when applying traditional MDI rules.
For example:
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What qualifies as a “women-served community”?
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Does inheritance count if a woman takes over a previously male-owned bank?
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Should leadership matter more than ownership percentages?
These questions help explain why so few banks meet the official criteria today.
Why Women-Owned Banks Matter
Women-owned banks aren’t just about representation—they help solve real financial problems.
1. The Gender Pay Gap Still Exists
On average, women earn less than men, and the gap is often wider for women of color. Lower income makes it harder to save, invest, and qualify for loans.
2. Women-Owned Businesses Face Funding Barriers
Women are starting businesses faster than the overall average—but they often struggle to get financing.
Studies show:
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Many women-owned businesses are underfunded or denied credit
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Women entrepreneurs receive smaller loans and less venture funding
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This limits business growth and job creation
Banks led by women may be better positioned to evaluate borrowers more fairly, especially small business owners who don’t fit traditional lending molds.
3. Access to Credit Shapes Long-Term Wealth
Limited access to credit affects:
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Homeownership
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Auto loans
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Business expansion
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Generational wealth
Fair lending isn’t just good ethics—it strengthens the entire economy.
The Largest Women-Owned Bank in the U.S.
Currently, the largest women-owned bank in the United States is Texas National Bank of Jacksonville, with hundreds of millions of dollars in assets.
It operates as a community-focused bank offering everyday services like checking accounts, business loans, and commercial lending—just like larger banks, but with a local-first mindset.
What the Future Looks Like
While women remain underrepresented in financial leadership globally, momentum is building.
New banks—such as digital-first community banks launched in recent years—are using technology to:
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Reduce costs
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Expand access
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Serve women, minorities, and small businesses more effectively
As diversity, equity, and inclusion become bigger priorities, women-owned banks may finally find a more supportive environment to grow.
The Bottom Line
Women-owned banks make up a very small but meaningful part of the U.S. banking system.
They exist because:
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Traditional banking hasn’t always served women fairly
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Access to credit shapes opportunity
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Financial inclusion benefits entire communities
While there are only a handful today, their impact reaches far beyond their size. As awareness grows and barriers continue to fall, women-owned banks may play an even larger role in the future of American finance.
