Administration Unites Banks, Fintechs and Foundations to Advance Economic Opportunity

Public, private and social sector partnership includes 24 organizations prioritizing historic financial investments in underserved communities

Last week, the White House announced the formation of a new Economic Opportunity Coalition to  “address economic disparities and accelerate economic opportunity” across communities of color and other underserved constituencies and geographies. The EOC will include investments of tens of billions of dollars, including “more than $3 billion of investments into community development financial institutions and minority depository institutions,” according to American Banker. Created as a public, private and social sector partnership, the EOC will focus on getting meaningful resources where they’re most needed.

Coalition initiatives include: diverse investing in Community Development Financial Institutions (CDFIs) and Minority Depository Institutions (MDIs) with $250 million in long-term, low-interest funds and $70 million in grants; supporting entrepreneurship and minority-owned businesses through the development of purchasing programs from diverse suppliers and technology and technical assistance initiatives; expanding equitable access to credit and other fiscal support; and prioritizing infrastructure investments that generate community wealth, including expansion of affordable rental housing and homeownership in underserved neighborhoods.

“These commitments, which represent only a small fraction of total commitments from the EOC, show the immense resources these founding members bring to the table, but they acknowledge they must do more,” according to the White House fact sheet on the program. “Over the coming months, the EOC will build on investments to develop new solutions that reimagine how capital, technology, and talent are deployed in underserved communities.” The founding members of the EOC include Bank of America, Capital One, Citi, Discover, Goldman Sachs, Google, Key Bank, Mastercard, PayPal, and Upstart, among others.

More information about the Economic Opportunity Coalition is available at the White House briefing room. For continuing coverage of public-private-social partnerships in financial services, stay tuned to Believe in Banking’s continuing coverage of the industry’s top trends and topics. For insights on best practices in financial services, including putting purpose at the center of your organization, contact the banking and credit union experts at Adrenaline at info@adrenalineagency.com.