Greenwood, a neobank that provides banking services to Black and Latinx communities, is adding retail investing to its platform as it heads into what it anticipates will be a profitable 2024.

The Atlanta-based fintech on Thursday announced the launch of Greenwood Invest, an app that allows customers to invest in stocks and exchange-traded funds.

Greenwood Invest "is the first product that we'll release that truly helps our community build wealth,” said CEO Ryan Glover, who co-founded the neobank in 2020 alongside civil rights leader Andrew Young and rapper and activist Michael “Killer Mike” Render. “Investing in America has proved so successful for others outside of our community to build wealth. I felt that it was important for us in our community to use that measure to currently build wealth within our own community. … We want to provide a platform for our community to grab a piece of the American pie.”

The firm is partnering with fractional investing fintech DriveWealth to enable Greenwood customers to trade New York Stock Exchange and Nasdaq stocks, Glover said. 

“The platform that we're launching will enable our customers to invest in blue chip stocks, but we will expand in the future to enable our community to invest in minority businesses of their choice and selection as well,” said Glover, an Atlanta-based entrepreneur and founder of Bounce TV. 

Users can trade and invest in stocks with no commission fees, Glover said. The platform will also allow users to buy fractional shares for as little as $1.

The platform’s expansion into retail investing coincides with the launch of a suite of educational content, including webinars and guides, to help educate customers on the basics of investing, the company said. 

“I think we are launching Greenwood Invest at the absolute right time,” Glover said. “From millennials, to my age, we now understand that building wealth is not just all about working or having a job. You must do other things to grow your personal and family bottom line. And Greenwood Invest is a way for you to do that.”

A profitable 2024?

Greenwood’s expansion into retail investing falls in line with the firm’s mission to offer services that extend beyond standard banking products.

In the past several years, the neobank has acquired companies that have broadened the platform’s offerings to include entertainment and career development geared toward Black and Brown communities.

Last year, the neobank acquired networking hub and workspace The Gathering Spot, music festival A3C and professional networking platform Valence.

Following the acquisitions, the firm last December launched its Elevate membership subscription offering, a $200-a-month plan that combines Greenwood’s digital banking platform with access to private clubs, entertainment and professional networking sites.

The platform in May also acquired Kinly, a neobank with a similar mission to serve Black and Brown communities. 

Meanwhile, Glover said Greenwood’s debit, spending and savings products have surpassed 100,000 users since the platform’s launch in 2020.

Greenwood plans to launch a “slew of other banking products” in 2024 as the startup looks to become profitable next year, Glover said.

“We’re not making much money with Greenwood Invest directly, but the upside of offering this product and service really is to help build additional trust within our community in banking and investment platforms within our community,” Glover said. "As we continue to release more products, we'll be able to reach new customers and increase our overall profitability, which is the reason why we're going to just continue to release banking products.”