Fintech Has a Diversity Problem

Industries across the country are getting a much needed reminder about their lack of progress when it comes to diversity; Jennifer Tescher, Founder & CEO of the Financial Health Network, writes in Forbes that fintech in particular needs to deliver on the promise of serving the underserved; according to a Harvard Business School study in 2016 only 3 percent of venture investors were Black and fewer than 1 percent of founders were Black; fintechs have always said they can deliver services to more people and more efficiently than banks, which translates to more underserved communities being added to the financial system; many of the industry’s biggest leaders talked about democratizing access to credit, payments and investing; through the Financial Solutions Lab Tescher found that investment is needed even earlier than the early product stage, Black entrepreneurs need capital at the ideation and incubation stage; Georgetown law professor Chris Brummer recently described the gravity of the problem in a piece on Medium: “If fintech fails to innovate where it counts the most, it will be doomed to repeat the failures of the very system it seeks to replace.” Forbes.

  • Todd is the host of PitchIt: the fintech startups podcast, a weekly interview show featuring emerging fintech founders and leading venture capitalists. He is responsible for leading the content team which covers fintech through daily & weekly email newsletters, editorial, virtual events, and in-person conferences. He has been covering fintech, banking, and venture capital for more than 15 years, including speaking regularly at industry events.

Sign up for our Newsletters

Every morning the Fintech Nexus News team scours the globe for the most important fintech stories of the day in the daily Global newsletter.

The Europe edition comes out on Monday, Wednesday, and Friday featuring the most important stories in European and UK fintech.

The Latin American newsletter arrives in your inbox on Tuesdays and Fridays. This is a trilingual newsletter featuring stories in Spanish, Portuguese, and English.

Join 20,000 subscribers!