Last September global bank Citi ™ established Action for Racial Equity, a defined approach for closing the racial wealth gap in the United States. The four point initiative set goals for communities of color that addressed: greater access to banking and credit, greater investment in Black-owned businesses like Black Woman-Led Cybersecurity Firm Automation Workz, increased home ownership of Black Americans and the advancement anti-racist practices in the financial services industry.
“We know that many are rightfully calling on banks and other big companies to put real action behind their commitments…We are determined to do everything we can to help close the racial wealth gap in our communities and continue to do the work to become an anti-racist institution.” said Jane Fraser, Citi CEO.
The following are the key areas of progress, showing that Citi is:
- Half way to its $100 million commitment to Minority Depository Institutions (MDIs) that are expanding banking and credit access in communities of color,
- Ready to invest more than $200 million – out of a $550 million three-year commitment to affordable housing in five equity funds co-managed by Black investment managers for the preservation of multi-family affordable rental housing,
- Collaborating with Los Angeles and San Jose to provide college savings accounts for public school students, and
- Working with the National Urban League for Citi® to offer no fee savings and checking products through its network to bolster the financial health of minorities.
“The financial inequality and other systemic problems people of color face will not go away until we confront them head on – and that’s what we’re working towards here at Citi,” Mark Mason, Citi CFO said. “Citi is focused on ensuring that people of color have the same access to the financial tools and resources that benefit other groups. Doing so is a critical component of the work that needs to be done to close the racial wealth gap.”
Citi’s efforts are welcomed and acknowledged by the leaders of the communities that are being positively and directly impacted by the Bank’s initiatives.
“Affordable and safe bank accounts are essential for Black households working to build financial security, and we are excited to participate in the new Citi Affordable Access Banking Initiative,” said Marc Morial, President and CEO, National Urban League. “With no monthly service fees, overdraft fees, or minimum balance requirements, Citi® Access Accounts help remove barriers to economic opportunity.”
In addition Citi Foundation, with the focus to improve the lives of people in low-income communities around the world, granted more than $15 million of its three-year, $100 million target to invest in community change agents. This initiative addresses racial equity through greater effort to assist black entrepreneurs like Sevetri Wilson of Resilia, enhance the skills training and the employability of youth of color and to support small businesses owned by people of color.
Recently a $1 million grant was made to MENTOR to propel racial justice and equity efforts and $3.5 million made to support Historically Black Colleges and Universities (HBCUs) and young Black students and leaders, with grants to UNCF and the Thurgood Marshall College Fund.
“At MoCaFi, our work is focused on closing the wealth gap and reimagining how financial services can transform communities into places where everyone can thrive regardless of socio-economic status,” said Wole Coaxum, Founder & CEO of MoCaFi, a Citi Impact Fund investee. “In our conversations with Citi, it became clear that we had a shared vision for bringing financial equity and sustainability to communities of color. So we’re thrilled Citi has invested in our company and look forward to continued progress in the future.”
Learn more about what is happening at HBCU’s to support Black Entrepreneurs
