US challenger bank Greenwood secures $45m funding

US challenger Greenwood, a digital banking platform for Black and Latino individuals and businesses, has raised $45 million in its latest funding round led by Pendulum.

Greenwood secures $45m funding

New investors who took part in the round include Cercano Management, Cohen Circle, The George Kaiser Family Foundation, and NextEra Energy. Existing investors Bank of America, Citi Ventures, PNC, Popular, Truist Ventures, TTV Capital, and Wells Fargo also participated.

Greenwood plans to use the fresh capital to accelerate its “vision of closing the racial wealth gap” and provide the tools and education needed to empower the country’s Black and Latino communities to build generational wealth.

Along with the funding, Greenwood is also launching Elevate, a membership offering for customers focusing on career and lifestyle benefits.

“Our vision is to make Greenwood the premier destination for Black and Latino wealth creation and regeneration while keeping community connection and collective professional advancement at the centre,” says Ryan Glover, chairman and co-founder of Greenwood.

Founded in 2020 and headquartered in Atlanta, Greenwood claims its banking platform is used by more than 100,000 customers.

In March 2021, the bank raised $40 million in a round that also featured the likes of payments heavyweights Mastercard, Visa, and FIS. The latest round brings the total capital raised by the challenger to $88 million to date.