U.S. Bank Leaders Discuss How Black Families Can Build Intergenerational Wealth

NORTHAMPTON, MA / ACCESSWIRE / May 23, 2023 / U.S. Bank

Foto: Accesswire

Photo: Scott Ford, left, Greg Cunningham and Sekou Kaalund participated in the LinkedIn Live discussion.

Originally published on U.S. Bank company blog

For many Black Americans, historic discriminatory policies and lack of access to credit have prevented them from building wealth and from passing that wealth on to future generations.

In early May, U.S. Bank held a LinkedIn Live discussion on this important topic with three of its top leaders: Scott Ford, Head of Affluent Wealth Management, Sekou Kaalund, Head of Branch and Small Business Banking, and Greg Cunningham, Chief Diversity Officer. The leaders discussed some of the barriers that have prevented Black Americans from building intergenerational wealth and the progress that has been made in recent decades to help decrease the racial wealth gap.

The leaders began by discussing the U.S. Bank Building Black Wealth Insights Study, which revealed that 79% of Black Americans felt there were institutional roadblocks keeping them from accumulating wealth and that 69% of Black Americans felt a deep sense of responsibility to help their communities financially and are committed to leaving a financial legacy for the next generation. The study is part of Access Commitment, a series of initiatives across U.S. Bank to increase wealth-building opportunities, starting with the Black community.

"The study revealed an eight-to-one wealth disparity between white households and Black households in terms of overall wealth," Cunningham said. "Forty-five percent of Black households own their own home vs. 74% of white households. We all know how important homeownership is. It's the No. 1 way that wealth gets transferred in this country. These are big and important problems."

Ford agreed. "In most cases, a home is the most valuable asset families have," he said. "Lack of access to homeownership is one of the things that precipitated the wealth gap to begin with. But homeownership rates among Black Americans are about the same now as when redlining and housing discrimination were legal."

The leaders also discussed Black American small business owners and their historic lack of access to capital.

"The vast majority of all job creation is in companies with less than 100 employees," Ford said. "The median net worth for Black business owners is 12 times higher than for the rest of the general Black population. Small businesses are key contributors to the stability of our communities and the ability to create intergenerational wealth."