Three Ways You Can Support Diversity, Equity and Inclusion

While the opportunity to create and sustain wealth has been limited for many people of color, this rings particularly true for Black people in America due to systemic inequality, racism and structural barriers. The membership of the UHNW Institute and the clients we serve represent tremendous social, political and financial capital that can be used to disrupt harmful practices and policies. As we celebrate Black History Month, we wanted to share three ways, we as individuals, can support diversity, equity and inclusion (DEI) within the organizations where we hold positions of power.

1) Be ready and able to serve the “New Majority”[1]:

• Less than 30% of financial advisors reflect the “New Majority” of investors so it’s no wonder that 73% of those investors report being underserved. New majority investors include women, NextGen, LGBTQ+, and Underrepresented Groups.[2]

• It is estimated that Black consumers’ collective economic power will rise from $910 billion in consumption in 2019 to $1.7 trillion by 2030. By 2030, financial services providers that offer more equitable, more-accessible, and better products and services can win $225 billion in cumulative spending from Black consumers (excluding organic growth).[3]

• Ballentine Partners launched Conversations on Black Wealth, a podcast featuring Black millionaires and 7+ figure business owners on their wealth-building journeys, experiences working with financial services professionals, and their thoughts on what the financial services industry can do to help close the racial wealth gap.

2) Explore ways to use organizational power to dismantle inequality:

• Goldman Sachs’ One Million Black Women initiative is investing $10 billion over the next decade to help narrow opportunity gaps facing Black women and JP Morgan’s Advancing Black Pathways is harnessing expertise and resources to drive $30 billion by 2025 focused on an equitable recovery to the Covid-19 pandemic are notable examples.

• Arabella Advisors’ Racial Wealth Gap Practice focuses on how philanthropy can best support communities of color in accessing economic opportunity and prosperity. Arabella also launched the Future of Black Wealth Series a content series that aims to redefine the wealth gap problem and shift mindsets.

• The McKinsey Institute for Black Economic Mobility is a research institute and think tank dedicated to advancing racial equity and inclusive growth in the United States—and globally.

3) Be the best ally in the spaces where you operate:

• According to McKinsey, companies with ethnic diversity among their Executive Team outperform their peers by 36%. Be a better ally in the workplace with advice from Harvard Business Review, this free LinkedIn training or this free Allyship Moderating Training.

• Be an ally to Black entrepreneurs with these tips.

We look forward to sharing more resources on allyship and other ways you and The UHNW Institute can advance diversity, equity, inclusion and belonging. There is much work to be done, but the rewards will benefit us all. Please feel free to reach out to us with any questions.

 

Sincerely,

The DEI Initiative Committee of The UHNW Institute: Kelly Lora Ewart, Betsy Erickson, Nicole Perkins, Sharyn Church, David Reynolds and Rusdi Sumner

 

 

Sources:

[1] In two decades “minorities” will be the majority. 2044 is the year when the U.S. will become a “majority-minority” nation, as the non-Hispanic, white-alone segment for the first time constitutes less than 50% of the country’s total population. (US Census Bureau)

[2] https://www.trustwillow.com/

[3] McKinsey