HOLLADAY, Utah — It is legendary: the daughter of Martin Luther King Jr. helping break ground on not only Utah’s first Black-owned bank, but the first Black-owned bank to open in the western U.S.
Redemption Bank is the only Black bank in the history of the country that's not physically located within an economically underserved community, and it's also currently the only one located in the Black-banking desert that stretches from California to Texas.
“It’s very personal because most people, when they think of my father, they only think about him as being a civil rights leader, but my father talked about the importance of economic justice along with racial justice. In fact, he called them inseparable twins,” said Bernice A. King, the youngest child of Martin Luther King Jr. “So, this is an opportunity for me to continue part of that legacy.”
King will serve as Redemption’s senior vice president for corporate partnerships and community impact.
The building is unassuming, sitting on East Murray Holladay Road. If it looks familiar, that’s because it’s been a mainstay in Holladay for more than 40 years, formerly known as Holladay Bank.
And while Salt Lake has a Black population under 3 percent, Redemption’s founder and executive chairman says Utah is the perfect location for a bank of its kind.
“There’s really no better state in America to do business than Utah, so if you’re an investor of any background, you’re looking for a place to do business, you want to go where the regulations are great for what you want to do — which Utah has the best return on assets for banks — it’s amazing,” said Ashley Bell. “And then you stay because of the people. I think our journey to purchase Holladay Bank and Trust has really been highlighted by the amazing investors and collaborators that we found locally.”
The bank is what’s called a Minority Depository Institution, MDI for short. MDIs were formed in the 1800s when Black people couldn’t get loans from traditional banks, so they formed their own banks.
Redemption is only the 24th MDI in the nation.
“While Redemption is a Black-owned bank, it’s certainly not only for Black people,” said Brandon Comer, a managing partner with Alterity Capital. “I think the Black community will certainly benefit from its presence, but I think the community at large will benefit from its presence.”
Comer is one of the bank’s investors and says mission-driven enterprises like Redemption shouldn’t be viewed purely through a philanthropic lens. He says their goal is to do well and do good at the same time, focusing on helping small businesses and budding entrepreneurs get their start.
Last month’s report from LendingTree shows that 39 percent of Black-owned businesses were denied a loan, line of credit or merchant cash advance in 2024 — the highest by race. Hispanic-owned businesses followed at 29 percent, while just 18 percent of white-owned businesses were denied. Twenty-one percent of all businesses that applied in 2024 were denied.
Redemption is striving to be a solution.
“We are excited about extending these new resources and new opportunities to people who are looking at growing their small business, and we think that is what is key; we want to be a part of growing Utah,” said Bell. “We want to be a part of growing Salt Lake City‘s entrepreneurial horizons.”
“The gaps in terms of home ownership, gaps in terms of wealth creation and also just gaps in terms of financial literacy, I’m hoping that we will be able to break some of that as an institution,” said King.
