Diversity in fintech is now a more central consideration than it once was – but why is D & I important , and what is the black founder experience like today ?
BLACK IN FINTECH
Being black in fintech :
DIVERSITY AND ITS IMPORTANCE
Diversity in fintech is now a more central consideration than it once was – but why is D & I important , and what is the black founder experience like today ?
WRITTEN BY : ALEX CLERE
There has been a significant mainstreaming of diversity and inclusion ( D & I ) topics in recent years – from improving the experiences of female and LGBTQ + employees to advancing the black founder experience .
Yet , this increased focus on diversity reflects that for too long these demographics were overlooked and omitted by the financial system – something that is continuing to work to their detriment to this day .
It ’ s clear the industry is trying to improve the situation but , at a time when financial services are struggling to provide equitable access to black customers , what chance is there of improving the diversity within the industry itself ?
According to the US Federal Reserve , the average black family in the US has a household fortune worth an eighth of their white counterparts , saying that “ a lack of access to financial services , specifically banking and insurance , is both a symptom and a cause of the gap ”.
What ’ s more , historical exclusionary policies and programmes have continued to perpetuate this cycle , where black customers get a different experience from white customers . As many as 47 % of black households are unbanked or underbanked , says the FDIC , and black applicants are more likely than white applicants to face credit denial .
“ Lenders and investors should take more perceived financial risks to support minority , women and black-owned fintechs ,” says Everett Sands , Founder and CEO of Lendistry , a tech-enabled community lender that has connected more than 600,000 small and underserved businesses across the US to nearly US $ 9bn in equitable capital and relief grants .
“ When I say perceived risk , I mean these firms are considered risky just because capital hasn ’ t flowed to them in the past ,
120 October 2023