iGrad and HBCU Community Development Action Coalition Team up with National Bankers Community Alliance for Financial Wellness Pilot Program Aimed at Closing Racial Wealth Gap

The National Bankers Community Alliance (NBCA), a 501(c)(3) affiliate of the National Bankers Association (NBA), has announced an exciting partnership with the San Diego-based financial wellness education company iGrad and the HBCU Community Development Action Coalition (CDAC) to introduce a financial wellness program aimed at helping minority communities bridge the racial wealth gap.

Thirteen of the NBA’s member Minority Depository Institutions (MDIs) will take part in the NBCA Powered by Our Money Matters pilot. This initiative harnesses the power of iGrad’s Enrich™ platform, an artificial intelligence-driven tool designed to facilitate knowledge exchange, encourage positive financial behaviors, and promote mainstream banking engagement.

NBCA Powered by Our Money Matters is an innovative financial wellness hub and digital platform originally developed to empower HBCU and Minority Serving Institution students and community residents with the skills needed to achieve financial freedom. With the support of a $500,000 grant from the Wells Fargo Foundation, the NBA’s member banks will utilize the platform to deliver in-person counseling, online programming, and support services to assist individuals in managing their finances through improved banking and financial behaviors.

Nicole Elam, president and CEO of the National Bankers Association and executive director of the National Bankers Community Alliance, expressed the association’s dedication to strengthening the financial health of minority communities, emphasizing the need for innovation and information to support customers in managing their finances.

Financial wellness goals

The pilot program aligns with NBCA’s Financial Wellness pillar, which aims to deliver programs, training, and services to underserved households to support asset accumulation and sustainability.

Sharon Kent, Our Money Matters program director, emphasized the joint commitment of NBCA and iGrad to promote the importance of financial wellness and confidence for underserved American communities. The partnership aims to significantly improve the financial health of minority communities and younger consumers in order to narrow the racial wealth gap.

Recent reports from the Federal Reserve indicate that 40 percent of Black households and 30 percent of Hispanic households are unbanked or underbanked, compared to 12 percent of white households. Furthermore, a report from the McKinsey Global Institute estimated that nearly 20 percent of Black families have a negative net worth.

Target markets and outreach

In addition to addressing the needs of minority communities, NBCA, HBCU CDAC, and iGrad are also committed to reaching Gen Z, a particularly challenging market of individuals in the 18-25 age range who primarily use mobile banking and money-transfer fintech applications over building relationships with community bankers.

Bonnie Wallace, head of Financial Health Philanthropy for Wells Fargo, expressed excitement about helping NBA member banks advance their digital transformation and expand access to digital financial wellness tools intended to aid individuals and families in reducing debt, saving for retirement, or achieving other financial goals.