Malia Lazu

It seems like so long ago, though only a mere four and a half years have passed.

In the wake of George Floyd’s murder, financial institutions and other companies everywhere announced new or renewed commitments to underserved communities – providing capital for small businesses, home ownership and the generation of wealth.

That commitment appeared to be going strong two years ago, as evidenced by a USA Today headline: “How banks are working to support Black communities after the impact of George Floyd’s death.”

When it served them and their public image, banks rushed to grab the latest headlines to trumpet their commitment. Now, in the wake of the 2024 presidential election, there is significant and justified concern about the likelihood of organizations dismantling diversity, equity and inclusion (DEI) policies and programs.

In an analysis of “What Trump’s Second Term Could Mean for DEI,” published recently in Harvard Business Review, three authors cautioned that “the landscape for pro-DEI organizations in the United States is now analogous to the landscape for pro-LGBTQ+ organizations in hostile countries abroad.”

It is a sobering reality, to say the least.

Now the spotlight is on banks: Will they continue to support and trumpet their commitments to the underserved? Or will those commitments be broken, trumped by the political climate?

Billions in Commitments to Date

Let’s recall the scope of such initiatives that were announced with great fanfare about the need to level the playing field and greater equity in access to capital. A few examples help illustrate what lenders across the spectrum committed to.

JPMorgan Chase’s “racial equity commitment” sought to help create an economy that is more inclusive to populations that have historically been locked out of banking. This includes a $30 billion plan to close racial wealth gaps and increase economic inclusivity.

Bank of America increased its “commitment to advance racial equality and economic opportunity” from $1 billion per year for four years to $1.25 billion over 5 years. These efforts are in part a response to addressing long-standing issues of inclusion and racial inequity in banking.

Citi’s pledge to address the racial wealth gap was captured in three-year, $1 billion commitment. Efforts include business integration, community investment, and a deeper investment in learning and collaboration.

Wells Fargo’s $50 million investment in Black-owned banks has sought to foster growth in Black and African American communities. These banks are located in Georgia, Louisiana, Texas and Michigan.

U.S. Bank established new roles within the organization to help support minority-owned businesses. Under this program, banking teams and community partners across the country have been working with minority-owned businesses to address barriers to growth and employment opportunities.

Communities Will Be Watching

Even if banks try to end their programs quietly, there will be noise among activists, organizers and allies. More than ever, the private sector – and especially the biggest banks – need to stand up for their values to build wealth, create economic opportunity and promote homeownership.

This is what it means to be proactive and inclusive, rather than simply reactive to the political environment that’s giving organizations a “pass” on breaking their prior commitments.

Banks must not falter in their investment in Black and brown communities and other underserved groups. Access to banking and other financial institutions is key to creating equity in minority communities. The question is as valid today as it was two years ago: “How banks are working to support Black communities after the impact of George Floyd’s death?”

As that USA Today writer observed two years ago, efforts to close the wealth gap have always included money for community investment, funding scholarships at historically Black colleges and universities, providing more access to financial literacy and recruiting and promoting more people of color at all levels of an organization.

Now, many will be watching how banks answer the question about (and if) they will continue to support underserved communities.

This new government might be a boon to the investment economy but policies its leaders are already espousing will create greater wealth gaps that will be filled with street violence. As the South Africans on Trump’s team know too well, South Africa cannot build fences high enough and neither can we.

Those banks that carry out promises to help Black and brown communities, regardless of the political environment, will build a legacy worth remembering for generations to come.

Malia Lazu is a lecturer at the MIT Sloan School of Management, CEO of The Lazu Group, former Eastern Massachusetts regional president and chief experience and culture officer at Berkshire Bank and the author of “From Intention to Impact: A Practical Guide to Diversity.”