Visa is launching a multi-year program to combat economic inequality and deliver expanded access and opportunities to minority-led banks and communities of color throughout the U.S.
The Minority Depository Institutions Accelerate program will be backed by Visa with up to $100 million through deposits with minority depository institutions (MDIs).
MDI is a federal designation for banks and credit unions where 51% of ownership is by Black Americans, Asian Americans, Hispanic Americans or Native Americans. The FDIC shows there are 143 MDIs across the U.S. and its territories as of June 30, with collective assets topping $254 billion.
Besides investing in MDIs to assist them in generating lending, Visa will also going to provide the banks with actionable insights and digital solutions to solve the problems and meet the needs of the communities they serve.
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“Visa acknowledges that economic disparities must be addressed through equitable access to financial resources. We want to do our part by working with MDIs and other associations tied to diverse communities,” said Michelle Gethers-Clark, chief diversity officer and head of corporate responsibility at Visa.
“We believe MDIs play a critical role in improving economic outcomes and are proud that Visa MDI Accelerate will advance our shared goal of uplifting everyone everywhere,” Gethers-Clark added.
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Through the Minority Depository Institutions Accelerate program, Visa also aims to support the development of the National Bankers Community Alliance’s digital impact measurement platform.
The measurement platform will give MDIs the ability to “quantitively capture how they support their communities,” which can assist them in gaining new investments.
MDIs will also have “first-in-the-country access” to the enhancements to Visa’s Spending Momentum Index (SMI) that offer aggregated insights on consumer spending and can shine a light on the economic health of communities.
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