New Bank Opens in Utah, Carrying Forward a Legacy
HOLLADAY, Utah — The daughter of Martin Luther King Jr. has taken a significant step in promoting economic justice by helping launch Utah’s first Black-owned bank. This initiative marks a historic moment as it’s also the first Black-owned bank in the western United States.
Redemption Bank stands out as it’s the only Black bank in U.S. history not situated in a economically disadvantaged area. It’s a unique establishment in the “Black banking desert” that stretches from California to Texas.
Bernice A. King, the youngest child of Martin Luther King Jr., reflected on the personal significance of this project. “Many people view my father solely as a civil rights figure, but he emphasized the importance of economic justice alongside racial justice. He referred to them as inseparable twins. So, this is an opportunity for me to carry on part of that legacy,” she expressed.
King has been appointed as the senior vice president of corporate partnerships and community impact at Redemption Bank.
Located on East Murray Holladay Road, the building is quite unassuming. It used to be known as Holladay Bank, serving the community for over four decades.
Despite Salt Lake City boasting a Black population of less than 3 percent, the founder and executive chairman of Redemption believes that Utah is an ideal location for this bank. “There’s really no better state in America to do business than Utah. For investors from all backgrounds looking to establish themselves in a regulated environment, Utah stands out. It offers the best return on assets for banks,” said Ashley Bell. “You stay, really, because of the people. Our journey to acquire Holladay Bank & Trust was made easier by finding great local investors and collaborators.”
Redemption is classified as a Minority Depository Institution (MDI), a concept that originated in the 1800s when Black individuals faced barriers in obtaining loans from traditional banks, leading them to create their own.
Currently, Redemption is only the 24th MDI in the country.
“While Redemption is a Black-owned bank, its impact extends beyond just the Black community,” stated Brandon Comer, managing partner at Alterity Capital. “Sure, the Black community benefits, but it’s really about the overall community.” He emphasized that mission-driven institutions like Redemption should not be viewed merely through a charitable lens. Their aim is to succeed while also making a positive impact, particularly by assisting small businesses and aspiring entrepreneurs.
A report from LendingTree revealed that in 2024, 39 percent of Black-owned businesses faced denial for loans, lines of credit, or cash advances—this was the highest percentage compared to other racial groups. In contrast, 29% of Hispanic-owned businesses were denied, while only 18% of white-owned businesses experienced rejections. Overall, 21% of all applications in 2024 received a denial.
Redemption aims to address these challenges. “We’re thrilled to provide new resources and opportunities for those looking to grow their small businesses. That’s vital for us, and we’re eager to contribute to Utah’s development,” Bell stated. “We want to support the growth of entrepreneurship in Salt Lake City.”
King added, “We see disparities in home ownership, wealth creation, and even financial literacy, and I’m optimistic that we can begin to address some of these issues.”
