SAN JOSE, Calif., Nov. 30, 2021 /PRNewswire/ -- PayPal
Holdings, Inc. (NASDAQ: PYPL) and the Congressional Black Caucus
Institute (CBCI), in partnership with two historically Black
colleges and universities (HBCUs) Dillard
University and Wiley College,
released new research as part of PayPal's commitment to advancing
racial equity. The white paper, titled "Reducing the Racial
Financial Health Gap: The Opportunity for Responsible
Fintech," addresses the importance of financial health in the
Black community and the unique role that financial technology
(fintech) companies can play in reducing the financial health and
wealth gaps.
The paper was funded as part of PayPal's $535 million commitment announced in June of last
year to support Black-owned businesses, strengthen underserved
communities and address economic inequality. A critical component
of the commitment involves partnering with non-profit and public
sector experts to explore the breadth of the racial wealth gap and
the potential solutions that the public and private sectors can
implement to help close it.
"We all have an opportunity and a responsibility to play a role
in addressing the ongoing racial inequities within the U.S. economy
and around the world," said Dan
Schulman, president and CEO, PayPal. "We need to work
together to ensure that future innovation in the financial services
industry is inclusive and accessible to all. We're proud to partner
with the Congressional Black Caucus Institute, Dillard University and Wiley
College on releasing this important study and are grateful
to the faculty members who guided this effort."
The paper outlines the history of how gaps in education, income,
employment, credit access and banking access, reinforced by racial
discrimination, have contributed to both the racial wealth gap and
disparities in financial health. It also presents recommendations
for how both the private and public sectors can help reduce the
financial health gap, including:
- Partnering with HBCUs: Today, the nation's 106
HBCUs make up three percent of America's colleges and universities,
yet they produce almost 20 percent of all Black graduates and 25
percent of Black graduates in the fields of science, technology,
engineering and mathematics. Companies should look to partner with
HBCUs, particularly those that do not benefit from substantial
national attention, not only on recruiting efforts but also on
building a financial health curriculum that can aid in narrowing
the racial wealth gap.
- Developing Inclusive Financial Products: The
fintech industry has the opportunity to expand inclusive
financial products for people who are credit invisible (those with
no credit history or credit report at the national credit bureaus)
or have thin or low credit. Whether it is through access to
affordable credit, fair and flexible small business lending
products or products that help build an individual's savings,
fintech companies have the ability to address systemic barriers to
wealth creation for Black and underserved communities.
- Pairing Private Sector Innovation with Public
Policy: To address systemic issues that have
contributed to the racial financial health and wealth gaps, fintech
companies should proactively work with government stakeholders to
promote the needs of underserved communities to ensure public
policy, laws and regulations reflect the changing landscape of
financial services and the opportunity they provide to economically
empower these populations.
"African Americans still don't experience the American dream or
rights and privileges the same as their white counterparts, thus
impeding upward mobility for most African Americans," said U.S.
Rep. Bennie G. Thompson, chairman,
CBCI. "In the report, data and research show that Black people have
on average higher unemployment rates, lower earnings, lower rates
of homeownership and pay more for credit and banking services. This
report provides solutions and avenues for financial wellness among
African Americans. It is an excellent example of good corporate
social responsibility in action."
"We hope that this report leads to robust conversations among
policy makers, and spurs additional academic inquiry," said
Walter M. Kimbrough, president,
Dillard University. "Reducing the
financial health and wealth gaps must become key priorities for a
healthy, increasingly diverse nation."
"Positively impacting financial health is complex. The way
forward requires investigation and commitment to the social good,"
said Herman J. Felton Jr., president
and CEO, Wiley College. "Our
contribution begins with our desire to see change for our
communities and willingness to partner for the creation of research
that impacts policy. Our report will be an exercise in what we
believe is a strengthening of information, an impetus for new
dialogues and a centering of the people and our
communities."
Read the full paper here. To learn more about PayPal's efforts
to improve financial health and build an inclusive economy, visit
about.pypl.com.
About PayPal
PayPal has remained at the forefront of the digital payment
revolution for more than 20 years. By leveraging technology to make
financial services and commerce more convenient, affordable, and
secure, the PayPal platform is empowering more than 400 million
consumers and merchants in more than 200 markets to join and thrive
in the global economy. For more information, visit paypal.com.
About the Congressional Black Caucus Institute
With an ever-changing representative form of democracy, 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 501 (c)
(4), nonprofit, nonpartisan, social welfare organization. While our
primary mission is to "Educate today's voters and train tomorrow's
leaders," we also inform, inspire and ignite our communities into
action on issues that affect them the most.
About Dillard University
Dillard University is a historically
Black institution that cultivates leaders who live ethically, think
and communicate precisely, and act courageously to make the world a
better place. Located in New
Orleans, Dillard is a private faith-based liberal arts
university that offers 22 majors. Founded in 1869, Dillard is
Louisiana's oldest HBCU. Find out
more by visiting www.dillard.edu.
About Wiley College
Founded in 1873 in Marshall,
Texas, Wiley College is a
historically Black, liberal arts, residential, co-educational,
baccalaureate degree-granting institution affiliated with The
United Methodist Church. Committed to the principle of educational
access, the College serves traditional and non-traditional students
from diverse backgrounds who have expressed a desire and potential
for learning in a Christian environment. Home of "The Great
Debaters," Wiley has an intentional
focus on social good and leadership and its motto is "Go forth
Inspired."
Media Contacts:
PayPal:
Janine Kamwene
jkamwene@paypal.com
CBCI:
Vanessa Griddine
vgriddine@cbcinstitute.org
Dillard University:
Eddie Francis
efrancis@dillard.edu
Wiley College:
Maya Brown
mbrown@wileyc.edu
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SOURCE PayPal Holdings, Inc.