SAN JOSE, California, November 30, 2021 / PRNewswire / – PayPal Holdings, Inc. (NASDAQ: PYPL) and the Congressional Black Caucus Institute (CBCI), in partnership with two historically black colleges and universities (HBCU) Dillard University and Wiley College, published new research as part of PayPal’s commitment to advancing racial fairness. The white paper, titled “Reducing the racial financial health gap: the opportunity for responsible fintech”, discusses the importance of financial health in the black community and the unique role that financial technology (fintech) companies can play in reducing financial health and wealth gaps.
The document was funded under PayPal $ 535 million commitment announced in June last year to support black-owned businesses, strengthen underserved communities and tackle economic inequality. A critical element of the engagement involves partnering with experts from the public and nonprofit sector to explore the extent of the racial wealth gap and potential solutions that the public and private sectors can implement to help address the racial wealth gap. fill it.
“We all have an opportunity and a responsibility to play a role in addressing racial inequalities within the US economy and around the world,” said Dan Schulman, President and CEO, PayPal. “We must work together to ensure that future innovation in the financial services sector is inclusive and accessible to all. We are proud to partner with the Congressional Black Caucus Institute, Dillard University and Wiley College for the publication of this important study and I am grateful to the faculty members who have guided this effort. ”
The paper describes the story of how gaps in education, income, employment, access to credit and access to banking, reinforced by racial discrimination, have contributed to both racial wealth gap and disparities in financial health. It also offers recommendations on how the private and public sectors can help close the financial health gap, including:
- Partnership with HBCUs: Today, the nation’s 106 HBCUs make up three percent of U.S. colleges and universities, but they produce almost 20 percent of all black graduates and 25 percent of black graduates in science, technology, engineering, and math. Businesses should seek to partner with HBCUs, especially those that do not receive substantial national attention, not only on recruiting efforts, but also on creating a financial health program that can help reduce the racial wealth gap.
- Develop inclusive financial products: The fintech industry has the opportunity to expand inclusive financial products for people with invisible credit (those who do not have a credit history or credit report with national credit bureaus) or have weak or weak credit. Whether it’s through access to affordable credit, fair and flexible small business loan products, or products that help build an individual’s savings, fintech companies have the ability to overcome systemic barriers to wealth creation for black and underserved communities.
- Associate private sector innovation with public policies: To address the systemic issues that have contributed to racial financial health and wealth gaps, FinTech companies should proactively work with government stakeholders to advance the needs of underserved communities to ensure that public policies , laws and regulations reflect the changing landscape of financial services and the opportunity they provide to economically empower these populations.
“African Americans still do not live the American dream or rights and privileges in the same way as their white counterparts, which hinders the upward mobility of most African Americans,” said the United States representative. Bennie G. Thompson, President, CBCI. “In the report, data and research shows that black people on average have higher unemployment rates, lower incomes, lower homeownership rates, and pay more for credit and banking services. This report offers solutions and avenues for the financial well-being of African Americans. a great example of good corporate social responsibility in action. ”
“We hope this report will lead to solid conversations among policy makers and stimulate further academic inquiry,” said Walter M. Kimbrough, President, Dillard University. “Reducing financial health and wealth gaps must become key priorities for a healthy and increasingly diverse nation.”
“Having a positive impact on financial health is complex. The way forward requires investigation and a commitment to social good, ”said Herman J. Felton Jr., President and CEO, Wiley College. “Our contribution begins with our desire to see changes for our communities and our willingness to partner in the creation of research that has an impact on policy. Our report will be an exercise in what we believe to be information reinforcement. , an impetus for new dialogues and a centering of people and our communities.
PayPal has been at the forefront of the digital payment revolution for over 20 years. By leveraging technology to make financial services and commerce more convenient, affordable and secure, the PayPal platform enables more than 400 million consumers and merchants in more than 200 markets to join and thrive in the world. Mondial economy. For more information visit paypal.com.
About the Congressional Black Caucus Institute
With a representative form of democracy in constant evolution, CBCI stands ready to prepare the next generation of political leaders. The Congressional Black Caucus Political Education and Leadership Institute (“CBC Institute”) was incorporated in 2000 as a not-for-profit, non-partisan 501 (c) (4) welfare organization. While our primary mission is “to educate the voters of today and train the leaders of tomorrow”, we also inform, inspire and inspire our communities to act on the issues that affect them most.
On Dillard University
Dillard University is a historically black institution that trains leaders who live ethically, think and communicate with precision, and act courageously to make the world a better place. Situated in New Orleans, Dillard is a private denominational liberal arts university offering 22 majors. Founded in 1869, Dillard is Louisiana the oldest HBCU. Learn more by visiting www.dillard.edu.
About Wiley College
Founded in 1873 in Marshall, Texas, Wiley College is a historically black, liberal arts, residential, coeducational, bachelor’s degree granting institution affiliated with The United Methodist Church. Committed to the principle of access to education, the College serves traditional and non-traditional students from diverse backgrounds who have expressed the desire and potential to learn in a Christian environment. House of the “Great Debaters”, Wiley intentionally focuses on social good and leadership and its motto is “Go Forward Inspired.” ”
SOURCE PayPal Holdings, Inc.