More than 100 partner organizations and companies have united to support the Southern Communities Initiative and their investments in key cities in the South
Six southern cities are home to more than 50% of all Black Americans. While rich in regional culture, each city also has its own unique set of challenges, most notably the need to foster greater economic growth for its citizens and community. That’s why three founding companies – Vista Equity Partners, Boston Consulting Group, and PayPal – came together in 2021 to create the Southern Communities Initiative (SCI). Today, this powerful consortium connects 100+ partners – nonprofits, community organizations, corporations, and financial services providers, among others – all committed to building economic opportunities in influential southern cities.
SCI’s programs are focused on Atlanta, Birmingham, Charlotte, Houston, Memphis, and New Orleans. The consortium concentrates its efforts on these specific areas based on a history of underinvestment in the region, despite strong prospects and potential for impact. “In order for our minority communities to continue growing, they need financial institutions where they live that are well-positioned to provide equitable access to capital,” according to Robert F. Smith, Founder, Chairman and CEO of Vista Equity Partners, a founding partner for SCI. “People of color continue to face numerous barriers to accessing these essential financial resources.”
The organization works in four core areas to break down those barriers:
- Minority Business Enterprise Entrepreneurship to strengthen diversity and small business growth in underserved markets
- Access to Capital to leverage Community Development Financial Institutions (CDFI) and Minority Depository Institutions (MDI) to increase capacity to issue more capital
- Education and Workforce Development to reduce student debt and support high-paying employment through education and skills training for students
- Digital Access to increase access and adoption of affordable high-speed internet solutions for low-income households
As cities grow, so does the demand for financial services – ranging from everyday banking for citizens to capital and lending for entrepreneurs. From big institutions like JP Morgan Chase and Regions Bank to community financial institutions like Hope Credit Union, Appalachian Community Capital and First Independence Bank, the banking and lending sectors are well represented. Nonprofit and membership groups bolster the effort even more. Mission-oriented organizations supporting financial inclusion include: FINRA Investor Education, Inclusiv, National Community Reinvestment Coalition, and National Black Bank Foundation.
SCI is an “open-source blueprint” for advancing racial equity, assimilating the best ideas from organizations rooted in their local communities. This thinking is then amplified and refined by leading national experts on banking, broadband, education, and more. “SCI brings together communities with the private sector and builds upon corporate capital commitments to address the systemic inequalities underlying the racial wealth gap,” says Dan Schulman, President and CEO of PayPal. “Our experience demonstrates that the strategic deployment of capital to on-the-ground organizers has catalytic impact.”
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