The Growth of Women-Owned Banks: A State-Wise Look

In recent years, women-owned banks in the United States have emerged as pivotal players in promoting financial inclusivity, offering women entrepreneurs the resources needed to thrive in a competitive market. Although these banks constitute less than 1% of all banking institutions in the U.S., their impact on the communities they serve is significant.

As of 2024, 16 banks across the country have been officially recognized as women-owned by the Office of the Comptroller of the Currency (OCC). These banks operate in various states, driven by a mission to close the gender gap in access to financial services.

A State-by-State Look at Women-Owned Banks in the U.S.

Let’s begin with a broad overview of the rise of women-owned banks in the U.S., emphasizing their historical significance and impact on fostering diversity within the financial sector. These institutions are crucial for addressing community-specific needs and promoting financial equity.

The Role of Women-Owned Banks

Women-owned banks offer more than just financial products and services; they specifically support the unique needs of female entrepreneurs, who often encounter barriers to accessing capital. Despite owning 42% of businesses nationwide, women still receive a disproportionately low percentage of business loans.

This gap is even more pronounced for women of color, who constitute half of all women business owners. By focusing on women entrepreneurs, these banks create environments where women can access loans, lines of credit, and specialized financial products tailored to their needs.

Texas: A Powerhouse for Women-Owned Banking

Texas hosts some of the largest women-owned banks in the U.S. Texas National Bank of Jacksonville, founded in 1985, boasts over $800 million in assets and nine branches. The Santa Anna National Bank, established in 1933, serves Coleman and Brown counties, offering personal loans, business accounts, and online banking.

Commercial National Bank of Texarkana, with six branches across Texas and Arkansas, is known for its commercial loan services. Agility Bank, a fully digital institution, focuses on small and medium-sized businesses, providing innovative online banking solutions. These banks play a vital role in supporting women entrepreneurs and businesses across the state.

The Midwest: Building a Network of Support

The Midwest is home to a significant number of women-owned banks, creating a strong financial ecosystem for women entrepreneurs. In Iowa, First National Bank of Manning is a well-established institution providing both personal and business banking services, deeply rooted in the local community.

In Nebraska, First National Bank of Gordon focuses on rural banking services, providing essential financial resources for agricultural businesses—a key sector in the state. These services include agricultural loans, business checking, and savings accounts tailored to help farmers and rural entrepreneurs manage their finances effectively.

Oklahoma hosts two women-owned banks: BancCentral National Association and First National Bank of Okeene. These institutions offer a wide range of services, including personal banking products, business loans, and agricultural financing. Their strong community focus makes them cornerstones of local economies, supporting women-owned businesses.

The East Coast and Beyond: Expanding Women-Owned Banking

On the East Coast, the National Bank of Malvern in Pennsylvania, established in 1884, is one of the oldest women-owned banks in the country. It continues its commitment to community banking, offering personal and business financial services to residents of Malvern and beyond.

Beacon Business Bank in California serves a key role on the West Coast, with branches in San Francisco and San Mateo. It focuses on providing financial services to small businesses and nonprofits, many of which are led by women. The bank’s commitment to community development and its wide range of business banking services make it a vital institution for entrepreneurs in the Bay Area.

Challenges and the Path Forward

Though women-owned banks play a crucial role in supporting gender equality in finance, they face numerous challenges. A significant issue is scaling their operations. Many women-owned banks operate with fewer branches compared to their male-owned counterparts, limiting their reach. This makes digital banking solutions, like those offered by Agility Bank, crucial for their continued growth.

Another challenge is visibility. Despite their contributions to financial inclusivity, women-owned banks often operate under the radar, which can limit their ability to attract new customers and expand their influence. Increased awareness of these banks and the services they offer could play a pivotal role in their growth and the overall expansion of women-owned businesses.

Women-Owned Banks and the Future of Finance

Looking ahead, women-owned banks are poised to play an increasingly important role in the U.S. financial landscape. As more women enter the workforce and start businesses, the need for institutions that understand and cater to their unique financial needs will only grow. Women-owned banks not only provide essential financial services but also serve as a source of inspiration and support for female entrepreneurs.

With more women taking leadership roles in finance, and institutions like First Womens Bank in Chicago pioneering innovative solutions to close the gender gap in lending, the future of women-owned banks looks bright. These banks are more than just financial institutions—they are agents of change, promoting gender equality and economic growth in the communities they serve.

Conclusion

Women-owned banks in the U.S. are more than just financial institutions—they are beacons of progress and equality in an industry historically dominated by men. Despite making up less than 1% of all banking institutions, their impact is profound, especially for women entrepreneurs who face challenges accessing capital.

By offering tailored financial products and fostering inclusive environments, these banks help bridge the gender gap in finance. As the demand for women- centered financial services grows, these institutions will continue to play a pivotal role in driving economic growth and empowering future generations of women in business.