ISS Blog Bliss’ Post

💡How the United States’s legacy of slavery influences unequal credit scores and what we can do about it 💡 The credit scoring system in the United States, particularly the FICO score, significantly impacts individuals’ access to affordable financing, housing, and employment opportunities. In this blog article, recent ISS MA graduate Conor Farrell shows that though deemed “colour-blind,” the model inadvertently perpetuates racial disparities rooted in historical injustices, particularly slavery. Reforms, including AI-enabled credit scoring and policy changes like excluding medical debt from credit considerations, are essential to address these inequities and break the cycle of intergenerational poverty and racial inequality, he writes. Read the full article here https://wp.me/p9fvbD-7C5 #AI #creditscoring #inequality

The Unbanked Among U.S. Hispanic/Latinx Households: A Literature Review Roughly 5% of individuals are unbanked. Unbanked households do not have a checking or savings account. Subsequently, these households may be susceptible to high-interest financial products such as payday loans or check cashing fees. This research explored what is known about specifically Hispanic/Latinx unbanked households. Some of the common reasons why Hispanic/Latinx households are unbanked are due to lack of documentation, distrust in banks, and not having the minimum required to open an account. AFCPE®️ professionals might consider educating clients on the benefits of bank products. Additionally, programs such as Individual Taxpayer Identification Number (ITIN) banking and culturally-responsive financial education programs are beneficial. AFCPE® (Association for Financial Counseling and Planning Education®) #unbanked #hispanic #litreview

The Minneapolis Federal Reserve recently published a compelling report highlighting a significant disparity in the financial experiences of Native Americans compared to white borrowers. This study found that Native Americans face higher costs when financing home purchases, illustrating a broader issue of inequality in the financial sector. Key findings include that Native Americans are more likely to receive higher-priced mortgages and encounter more obstacles throughout the loan process, contributing to wider economic gaps and reinforcing the necessity for systemic changes within the financial industry. This report echoes the critical issues we've uncovered in our own work, particularly in our "Redlining the Reservation" research. Both pieces underscore the urgent need for interventions that address financial inaccessibility and racial discrimination within lending practices. By shedding light on these disparities, we aim to foster discussions that lead to meaningful reforms and promote a #justeconomy for all. For a deeper understanding of these pressing issues and to join the conversation on creating equitable financial systems, explore both reports: Minneapolis Fed Report: Native Americans Pay More to Finance Home Purchases Than White Borrowers https://buff.ly/43OPkda NCRC's Report: Redlining the Reservation https://buff.ly/48aBN0u Together, we can address these injustices and work towards an inclusive economy that serves everyone fairly.

If you are interested in change and advocacy in Native communities, read the shared post and the noted reports. "The wealth stripped out of already-impoverished Native communities via high-cost lending on low-value housing is accruing almost entirely to the empire of billionaire financier Warren Buffett, whose firms have a monopoly on manufactured home lending in our study area," (Castillo, Mitchell, Richardson, Edlebi, 2023 https://lnkd.in/g7aeW6mf).

UK's financial scene is changing, highlighting both challenges and opportunities. If you're dealing with debt, remember, you're not alone. Griffin & King is here to assist. Read the latest striking numbers: https://lnkd.in/exi-CPq5 #FinancialSupport #UKDebt 💷💼

Decades of disinvestment in Black and Brown communities have perpetuated economic disparities and limited opportunities for many. Our latest report sheds light on these systemic issues and calls for immediate action to address them. Together, we can build a more equitable future. #JustEconomy #EconomicJustice #RacialEquity

🚨 Legal system weaponized to stymie Economic Justice & Community Development in minority communities 🚨 Last week, a pivotal decision emerged from Texas that could have profound implications for our nation's journey toward economic equity. A federal judge halted the implementation of new guidelines under the Community Reinvestment Act (CRA), critically affecting historically underserved communities, especially those of color. 🔹 Why This Matters: "The decision...could significantly slow the trajectory of Black economic mobility." These guidelines were not just reforms; they were a beacon of hope for enhancing financial inclusion and reducing systemic inequities. 🔹 Impact on CDFIs and Communities: This would be a "growth opportunity for the country’s 1,500 Community Development Financial Institutions (CDFIs) that provide financial services and programs in communities of color, as the banks would partner with CDFIs to meet CRA goals." Without these guidelines, the potential for growth and support from these crucial institutions hangs in the balance. 🔹 Economic Implications: "Closing our country’s racial wealth gap could increase our national Gross Domestic Product by up to $1.5 trillion." The economic benefits of fostering an inclusive financial system are immense— for the entire country. 🔹 Looking Ahead: "Elections in November mindful not only of the policies we want from our president and Congress, but of the judges they appoint whose decisions have tangible and lasting impact." 📢 Don't allow a single decision to reverse decades of progress toward financial equality. It's time to raise awareness, engage in meaningful dialogue, and take action that ensures our financial systems work for everyone. Shari Dunn Gillian Marcelle, PhD Mike Green Emily Anne Gendron Joel Serface Elizabeth Leiba Samantha Katz #EconomicJustice

We believe that financial institutions should be inclusive for everyone, especially individuals with disabilities. Check out this report from our colleagues at the Southeast ADA Center along with Syracuse University to learn the best practices for inclusive banking. https://loom.ly/XSfT2i0 #TransCen #ADA #InclusiveBanking #DisabilityInclusion #BankingForAllAbilities

With one overarching strategy, credit unions can reduce inequality, stimulate economic growth, foster innovation and stabilize communities. Learn how technology can make a difference in financial inclusion. #creditunions

Generations of discrimination and mistreatment informed by racist beliefs, narratives, laws, policies, and practices have contributed to deeply entrenched structural inequities within the financial services sector that continue to profoundly undermine the economic status of people of color. This #MLK Day we should all recommit to doing all we can to to fight this injustice in our economic system. You can find out about some of our work on these important issues below. In an amicus curiae brief in the U.S. Supreme Court in a case that will determine the future of the Consumer Financial Protection Bureau we argued that sidelining the CFPB entirely or undermining its independence will sharply eliminate protections for millions of Americans, especially communities of color that are targeted by unscrupulous actors. https://lnkd.in/ewzDsRMe Homeownership rates among the lowest-income Americans are no greater today than they were when the Community Reinvestment Act was passed into law 45 years ago. Yet, 99% of banks nevertheless get high CRA ratings! We wrote an extensive letter to regulators and a policy brief explaining how we can actually bring about the change that is needed.   https://lnkd.in/g5rk26vd In an American Banker op-ed, we outlined what regulators can do to tackle racial economic inequality. https://lnkd.in/eZbC7uDg