Racial Discrimination in Financial Institutions
We need more Black people in Financial Services. Banks literally hold the wealth of the country and to not accurately represent the true demographics of the economy does a disservice to those in it.
As we know, there are many financial challenges that impact the Black community. Banking rates are lower but unemployment rates are higher. Homeownership is less likely in the Black community but homelessness rates are higher. You can learn additional statistics here (Understanding the Racial Wealth Gap) but let’s dive a little deeper into financial institutions.
At the largest banks in the US, Black people made up less than 3% of their executive boards. In the whole field (bankers and tellers), this number is still less than 15%. This poses a couple of challenges:
Bankers who do not look like you are less likely to understand your specific needs
Lending and investment is stalled
Predatory practices may be targeted to low income, predominantly African American communities
There is a very unique makeup of Black wealth in America and it is a delicate subject to understand. Due to years of redlining and systemic financial discrimination, Black Americans are still playing catchup in the race to build wealth. Having more Black players in financial institutions can help move Black Americans in the right direction on their wealth journeys.
So what can you do?
If you suspect a bank has discriminated against you or has violated any consumer protection laws, you may file a complaint with the Federal Reserve - Consumer Complaint Form
Be the change you wish to see. Have you had a passion for financial education? We know finances don’t always sound the most sexy, but trust us, it’s fun! That’s why at The Gym, we love helping our clients reach their financial goals and steer clear of exploitation.
If you feel something, say something. Many times we feel we are being discriminated against but brush it off. No more silence. If you have had a bank encounter and do not feel you were served properly, document the incident and report it to management.
Control your spending power. If you have not read our Black Banks blog post, please do! There are plenty of black banks with staff who look like you and understand you. If the large banks can’t offer you the service you need - there are always other places to go!
Ready to take your finances to the next level?
To get started schedule a free 20 minute consultation call to speak to a member of our team. We will ask you a few basic questions to get to know you more, walk you through our financial training program steps, and of course answer any questions you may have. No pressure to join!