The cultural mismatch between lending professionals and potential clients in diverse communities can cause lost revenue in what could otherwise be a win for all. Here: the story of a bank attempting to expand its market, a family facing the financing challenges of immigrant entrepreneurs, and a loan officer who embraces “character-based lending.”
Expert
Gregory B. Fairchild
Isidore Horween Research Professor of Business Administration; Associate Dean for Washington, D.C., Area Initiatives and Academic Director of Public Policy and Entrepreneurship; Dean and CEO of UVA | Northern Virginia
Insights
The social unrest of 2020 brought new attention to long-simmering issues of diversity, equity and inclusion in the U.S. and around the globe, and prompted many to seek to learn more about longstanding societal inequities — and potential paths forward. Six Darden professors deliver their thoughts and share additional thought leadership.
Netflix is investing $100 million in financial institutions that support Black-owned banks and Black communities. This investment isn’t just socially responsible in fueling opportunity; research shows that Black-owned banks outperform non-minority-owned peers. How does that reconcile with data that imply decline in success? Lack of initial assets.
While the U.S. has become more diverse, it has largely remained segregated. Good intentions and conversations about diversity may lead to what Professor Greg Fairchild terms the “illusion of inclusion”; even if we do not hold bias, physical and social separation may exacerbate existing income, wealth, job and achievement gaps.
Faced with limited customer flow, forced shut down of operations and a looming economic recession, the uncertainty of the COVID-19 pandemic leaves small-business owners to make decisions with little idea of what the future may hold. What lessons can they take from the success and resiliency of businesses that have survived crises in the past?
Minority-owned banks offer a valuable function in providing equitable support to minority communities and small-businesses. While they receive some government benefits, they also receive criticism for the support and a perception they’re “risky.” Is that criticism founded? Research analyzes actual outputs and inputs.
From the Civil War and Reconstruction to Martin Luther King Jr. and Richard Nixon to Jay-Z and Killer Mike: Darden experts discuss the history of minority depository institutions, the integral service they provide diverse communities and the challenges that still exist.
Top stories from Ideas to Action in February 2020
Darden experts provide a practical, step-by-step guide to dealing with identity theft, a phenomenon prevalent with the at-risk population of people who are incarcerated. Greg and Tierney Fairchild wrote a case on the matter for the Resilience Education program they founded to educate prisoners.
Emerson Process Management obtained a strong foothold in the Russian energy market despite the country’s almost Wild West economic and political conditions.
