Big Banks Are Committing $10 Billion to Tackling Racial Inequity. Here’s How to Get a Piece

Big Banks Are Committing $10 Billion to Tackling Racial Inequity. Here’s How to Get a Piece

Taking Care

Big Banks Are Committing $10 Billion to Tackling Racial Inequity. Here's How to Get a Piece

The money is meant to benefit underrepresented founders through increased contracting, funding, and capability-building, with the goal of driving $30 billion in economic impact.

By Brit Morse @britnmorse

Photo: Getty Images/Illustration: Chloe Krammel

Almost a year after the death of George Floyd , major banks and asset managers are committing billions towards addressing the effects of racial disparities in financial services .

On Tuesday, eighteen financial institutions including BlackRock, Morgan Stanley, Goldman Sachs Group, Bank of America, and Citigroup agreed to set aside $10 billion for businesses owned by people of color over the next five years. The money is meant to benefit underrepresented founders  through increased contracting, funding, and capability-building, with the goal of driving $30 billion in economic impact. 

The institutions, which control $27 trillion in assets and employ 750,000 people globally, are members of the Corporate Call to Action: Coalition for Equity & Opportunity (CCA), also referred to as the CEO Coalition. It's a corporate social justice initiative launched in September 2020 by the Connecticut Office of the Treasurer and the Ford Foundation, a private foundation aimed at improving human welfare. 

"CCA was established as a way to leverage the power of the financial services industry to make meaningful change toward racial equity in America," Connecticut