Bank card program to steer cash payments to single mothers in government housing

Bank Card Program Aims to Empower Single Mothers in Government Housing

Bank card program to steer cash - Redemption Bank, a Black-owned financial institution based in Holladay, Utah, has launched a new debit card initiative designed to uplift single mothers residing in government-subsidized housing. The program, named the Bank King Card, will debut on Friday in honor of Juneteenth, offering a unique financial tool to help these families combat poverty. With every account opened, the bank will contribute a fixed donation to nonprofits, ensuring the funds are directed toward communities in need. This move underscores Redemption Bank’s commitment to creating equitable access to economic opportunities for marginalized groups.

A Model for Financial Empowerment

According to Ashley Bell, chair and CEO of Redemption Holding Co., the Bank King Card embodies a novel regenerative banking approach. “This card starts by investing in mothers who are just a few dollars away from breaking free of poverty,” Bell explained. “It opens America’s vaults of opportunity, which have long been closed to many.” The initiative is part of a broader strategy to address systemic barriers faced by single-parent households, particularly those living in subsidized housing. By aligning financial services with the needs of these families, Redemption Bank seeks to foster long-term stability through accessible resources.

The donation structure is intentionally designed to provide consistent support without relying on transaction volume. Each new account will generate a predetermined contribution, determined annually by the bank’s board of directors. This ensures that the funding is a direct investment in the well-being of single mothers, rather than a variable amount tied to spending habits. Nonprofits will apply for grants through a newly established foundation, ensuring the money reaches those who need it most, as stated by Redemption Bank officials.

Addressing Economic and Caregiving Challenges

A 2026 study by the Urban Institute and the Jeremiah Program highlights the persistent struggles of single-mother households. The report reveals that these families often face significant economic hardship and heightened caregiving demands, making it difficult to meet basic needs. Redemption Bank’s program aims to alleviate some of these pressures by providing financial resources that can be used for essentials like food, housing, and childcare. “Guaranteed income programs have proven to be a powerful tool for lifting women out of poverty,” Bell emphasized, noting their impact on communities of color.

Chastity Lord, president and CEO of the Jeremiah Program, which focuses on improving economic mobility for single mothers, praised the direct-cash model. “When money is given directly to mothers and children, it’s overwhelmingly spent on necessities,” she said. Beyond immediate needs, the funds also enable families to make choices that prioritize their long-term goals. “It provides dignity,” Lord added. “It ensures continuous learning for children during the summer months, prevents them from being left unattended, and improves nutrition. Most importantly, it allows mothers to make decisions that benefit their families rather than simply surviving day to day.”

Pilot Programs Show Real-World Impact

Redemption Bank’s efforts are supported by real-world examples of similar programs. In Columbus, Ohio, a pilot initiative by the Ohio Mother’s Trust distributed $500 monthly to 32 single mothers over a year. Juanita Amakor, a 36-year-old mother of a 7-year-old, shared how the support helped her manage bills and pay rent. “It’s the breathing room it gives you, knowing there’s an extra source of income,” she said. “Even small amounts, like being able to take my child to the grocery store, make a huge difference.”

Another example comes from Michigan’s Rx Kids program, which provides a one-time $1,500 grant during pregnancy, followed by $500 monthly stipends for the first months of a child’s life. Kinea Wright, a 46-year-old mother from Flint, Michigan, described how the funds eased her financial strain. “The money was meant for a rainy day, but it arrived sooner than expected,” she said. “It was a blessing in disguise, helping with bills, diapers for my newborn, and other urgent needs, especially after my husband’s injury left us in a difficult situation.”

A New Chapter in Black-Led Banking

Redemption Bank’s journey to this initiative began with its acquisition of Holladay Bank & Trust in 2023. This marked a historic milestone as the first time a Black-led investment group owned a bank in the Western United States. At the time of the acquisition, Holladay Bank had approximately $65 million in assets and primarily focused on commercial lending and small business loans. The merger expanded Redemption Bank’s reach and solidified its mission to serve underrepresented communities.

Bernice A. King, co-founder and senior vice president of Redemption Bank, reiterated the importance of practical financial solutions. “Economic opportunity must be accessible and grounded in the realities of families,” she said. “The Bank King Card is an innovative way to align financial choices with values, offering a tangible path to stability for mothers, children, and entire households.” Her vision aligns with the bank’s goal of creating a system where financial support is both sustainable and meaningful.

Future Plans and Broader Implications

Looking ahead, Redemption Bank is set to introduce a credit card version of the Bank King program later this year. This new card will feature capped interest rates at 12%, ensuring affordability for users. The expansion reflects the bank’s ambition to scale its impact while maintaining its core principles. By integrating cash-based support with traditional banking services, the institution aims to build a comprehensive network for single mothers.

These programs highlight a growing trend in financial inclusion, where banks are leveraging their resources to address social inequalities. The success of initiatives like Ohio Mother’s Trust and Rx Kids has demonstrated that direct cash assistance can be transformative, not only reducing immediate financial stress but also fostering long-term independence. As Redemption Bank continues to grow, its focus remains on empowering communities through targeted economic interventions. “This is more than a card—it’s a tool for change,” Bell said. “It’s about giving families the chance to thrive.”