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

Redemption Bank Launches Debit Card Initiative to Empower Single Mothers in Government Housing

Bank card program to steer cash - Redemption Bank, a Black-owned institution based in Holladay, Utah, is launching a new debit card program designed to provide financial support to single mothers residing in government-subsidized housing. The initiative, known as the Bank King Card, will begin on Friday in celebration of Juneteenth, a day symbolizing freedom and resilience for many African Americans. This program aims to alleviate economic strain by offering a fixed monthly stipend to qualifying participants, with the goal of helping them achieve greater financial stability. A key feature of the program is its partnership with nonprofits, which will receive donations from each account opened to fund essential needs for low-income families.

A New Model for Regenerative Banking

According to Ashley Bell, chair and CEO of Redemption Holding Co., the Bank King Card embodies a fresh approach to banking that prioritizes community investment. “This model starts by empowering mothers who are just a few dollars away from breaking free from poverty,” Bell explained. “It opens up America’s vaults of opportunity, which have long been inaccessible to many.” The bank’s decision to align its services with the struggles of single mothers reflects a broader commitment to addressing systemic inequities in financial access. By tying donations to account openings rather than transaction volumes, Redemption Bank ensures that each contribution directly supports families in need, regardless of their spending habits.

“Bank King Card represents a new regenerative banking model that starts with investing in mothers who are a few hopeful dollars away from breaking out of poverty, and opening up America’s vaults of opportunity that have been closed to too many for too long,” said Ashley Bell, chair and CEO of Redemption Holding Co.

Redemption Bank’s approach is grounded in a 2026 report by the Urban Institute and the Jeremiah Program, which highlights the persistent challenges faced by households led by single mothers. The study found that these families often experience both economic hardship and caregiving burdens, making them particularly vulnerable to financial instability. By targeting this demographic, Redemption Bank seeks to create a sustainable impact through its charitable donations, which are determined annually by the bank’s board of directors. The amount will remain consistent for each new account, ensuring predictable support for participants.

Direct-Cash Services and Community Impact

The program’s design emphasizes direct financial assistance, with nonprofits playing a central role in distributing funds. These organizations will apply for grants through a newly established foundation, which will streamline the process of channeling resources to the most disadvantaged families. Chastity Lord, president and CEO of the Jeremiah Program, noted that such guaranteed income models have proven transformative for women across the country. “We’ve seen these programs act as a jolt out of poverty for women of color, particularly those in low-income households,” she stated. “The money is spent on necessities, but it also restores dignity and choice.”

“Money given directly to needy mothers and children is overwhelmingly spent to cover necessary goods or services,” said Chastity Lord, president and CEO of the Jeremiah Program. “It provides dignity. It ensures summer learning, not leaving kids at home. It increases nutrition. It allows the mom to make powerful decisions that benefit their children and their families instead of making decisions to just get by.”

One of the pilot programs under the Bank King Card initiative, the Ohio Mother’s Trust, provided $500 monthly payments to 32 single mothers in the Columbus, Ohio area for a year. For Juanita Amakor, a 36-year-old mother of a 7-year-old daughter, the support was life-changing. “It’s the breathing room it gives you, knowing there is something extra coming in,” she said. “It relieves a lot of anxiety.” Amakor used the funds to pay rent and cover unexpected expenses, such as groceries and clothing for her child. Her experience underscores the program’s potential to address immediate needs while fostering long-term financial independence.

Expanding Support Through Partnerships

Redemption Bank’s commitment to this cause is further reinforced by its recent acquisition of Holladay Bank & Trust, a Utah-based institution. Completed a year ago, this move made Redemption Holding Co. the first Black-led investment group to own a bank in the Western U.S. At the time, the bank had approximately $65 million in assets, primarily focused on commercial lending and small business loans. The acquisition marked a pivotal moment in the institution’s mission to integrate community-centric financial services into its operations.

Bernice A. King, co-founder and senior vice president of Redemption Bank, emphasized the importance of aligning financial choices with values. “Economic opportunity must be practical, accessible, and rooted in the needs of families,” she said. “Bank King Card is an innovative way to support that work. It creates a practical opportunity for people to align their financial choices with their values while supporting mothers, children, and families working toward long-term stability.” King, the youngest child of the Rev. Martin Luther King Jr., brings a legacy of social justice to the bank’s initiatives, ensuring that its efforts resonate with both historical and contemporary struggles for equity.

Future Plans and Broader Implications

Looking ahead, Redemption Bank plans to introduce a credit card version of the Bank King Card later this year, with interest rates capped at 12%. This expansion aims to further diversify the financial tools available to single mothers, offering additional flexibility without compromising their ability to manage debt. The credit card will likely target similar demographics, reinforcing the bank’s focus on financial inclusion for underrepresented groups.

The success of the Bank King Card has already inspired other initiatives, such as Michigan’s Rx Kids program. This state-run initiative provides a one-time $1,500 allocation to women during pregnancy, followed by $500 monthly stipends for the first months of a child’s life. Participants can use these funds for food, prenatal care, cribs, and other essential needs. For Kinea Wright, a 46-year-old mother in Flint, Michigan, the program was a lifeline after her husband sustained injuries in a forklift accident. “Initially, the money was put up for a rainy day,” Wright said. “I didn’t know the rainy day would come sooner than we thought. It was a blessing in disguise.”

These programs exemplify a growing movement to address the unique challenges faced by single mothers through direct financial interventions. By combining corporate responsibility with community-driven solutions, Redemption Bank and similar institutions are redefining the role of financial services in promoting economic mobility. As the Bank King Card gains traction, it may serve as a blueprint for other banks seeking to prioritize social impact alongside profitability.

With Juneteenth serving as a fitting launch date, the Bank King Card not only highlights the bank’s commitment to equity but also celebrates the resilience of Black communities. The program’s structure ensures that every dollar contributed is a step toward dismantling the barriers that have long kept single mothers in cycles of poverty. By leveraging its position as a Black-led bank, Redemption Bank is positioning itself as a catalyst for change, offering a tangible example of how financial innovation can intersect with social justice.