Visa will invest up to $100 million via deposits with MDIs and Provide Tools and Capacity Support to Minority-Led Banks
SAN FRANCISCO–(BUSINESS WIRE)–
Visa (NYSE: V), a leading global payments technology company, announced today the launch of Visa Minority Depository Institutions Accelerate, a new program to help reduce economic disparities and expand access and opportunity in communities of color across the United States. Through this multi-year program, Visa will invest up to $100 million via deposits with MDIs to help them catalyze lending. Visa will also provide tailored insights and digital solutions to these banks to help them meet the needs of their clientele and the communities they serve. This new program is part of Visa’s longstanding mission to uplift the lives of everyone, everywhere.
Economic and health shocks from the COVID-19 pandemic have severely affected minority households already suffering from longstanding disparities in wealth. Uplifting communities of color can have far-reaching benefits. According to a study by McKinsey and Company, closing the racial wealth gap could add up to $1.5 trillion to the U.S. GDP by 2028.
MDIs are trusted providers for communities of color and include some of the oldest minority-owned American banks as well as newer institutions working to reduce economic disparities. MDIs play a unique role in increasing access to financial services for underserved populations. According to the FDIC, they originate a substantially higher proportion of mortgages and small business loans to minority borrowers than other financial institutions do.