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In an effort to better serve Black consumers, U.S. Bank today released the results of its Building Black Wealth Insights research, which highlighted the financial needs, goals and challenges of Black Americans with at least $25,000 in investable assets.**
Key insights from the survey include:
“We understand that, as advisors who work every day to help clients achieve better financial outcomes, our industry has an important role to play and much more work to do to reduce the racial wealth gap,” said Gunjan Kedia, vice chair of Wealth Management and Investment Services at U.S. Bank. “This research highlights many steps we can take as an industry to better serve the Black community.”
The findings from the U.S. Bank Building Black Wealth Insights research will be used by the bank as it works to apply its core competencies as a financial institution to help close the racial wealth gap. As part of its Access Commitment, which followed on a $116 million initial commitment to address social and economic inequities, the bank is dedicated to listening and learning so it can best help individuals and communities of color advance economically, support businesses owned by people of color, and enhance career opportunities for employees and prospective employees of color. Many of the bank’s initiatives to address social and economic inequities are well underway, including efforts to increase the number of Black financial advisors over the next two years, a total investment of $208 million in Black-owned and -led businesses since June 2020, and $25 million in loans and grants to small business run by women of color.
For the research, U.S. Bank surveyed 4,024 people of Black, Hispanic, Asian and Caucasian heritage. Additionally, senior bank leaders held in-depth focus groups with Black consumers. This research specifically focused on those with $25,000 and up in investible assets** – those more likely to engage with a financial advisor or other investing mechanism to build wealth – to better understand how the financial industry can better meet the needs of Black Americans and what changes could deliver the most value.
“This work is intensely personal to me, and I have my own thoughts based on my life experiences, but it was important to us that we broaden the conversation by listening to consumers to learn about their perspectives, and then further test those learnings in our quantitative research,” said Scott Ford, president of the wealth management business that focuses on emerging affluent and affluent consumers. “The bank is continually holding a wide range of additional conversations with consumers across all wealth levels as part of our holistic approach to help address the racial wealth gap.”
Additional highlights from the research:
Black respondents are far more likely than non-Black respondents to feel a sense of duty to lift their communities financially
Black respondents are deeply committed to advancing the Black community through the “each one, teach one” concept – the idea of passing knowledge or learnings on to someone else.
Black Americans want to see themselves reflected in the financial teams helping them
Black women are less likely to work with a financial advisor and feel the Black community is at more of a disadvantage for wealth accumulation than Black males
Black consumers are committed to building wealth for the next generation
· Twice as many Black respondents describe financial success as leaving a legacy compared to their white counterparts (20% vs. 10%). They are also more likely than white respondents to define success as being able to help the next generation (26% vs. 16%).
· Building Black Wealth 2021 Insights study
· Q&A on the survey results with Gunjan Kedia, Vice Chair, Wealth Management and Investment Services, and Greg Cunningham, Chief Diversity Officer, U.S. Bank
*About the survey
U.S. Bank’s Building Black Wealth Insights research was conducted online between Jan. 6 and Jan. 26, 2021 by C+R Research on behalf of U.S. Bank of 4,024 Asian, Black, Caucasian and Hispanic consumers in the U.S. All of the respondents were sole, primary or joint financial decision-makers in their households. More than half of the respondents (2,062) had investable assets** greater than $100,000; 1,008 respondents had investable assets of $25,000 to $100,000 and 954 participants were 21-40 years old, had a college degree, were working full time and had household incomes ranging from $55k-$90k depending on age.
**Investable Assets – personal financial investments (taxable, IRAs and Keoghs) including deposits, investments and annuities. Excludes 401(k), 403(b), profit share, IRA-SEP, stock purchase/ESOP, money purchase, life insurance or home value.
Investment products and services are:
NOT A DEPOSIT ● NOT FDIC INSURED ● MAY LOSE VALUE ● NOT BANK GUARANTEED ● NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY
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Credit products are offered by U.S. Bank National Association and subject to normal credit approval. Deposit products are offered by U.S. Bank National Association. Member FDIC.
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