Citi becomes a founding member of the Economic Opportunity Coalition
The financial entity joins this coalition with the aim of accelerating financial inclusion for all.
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Citi recently announced that it has joined as a founding member of the Economic Opportunity Coalition (EOC), an effort by the Biden-Harris Administration to catalyze and align public and private investments that address economic disparities and seek to accelerate financial opportunity in diverse communities from the U.S.
This new financial inclusion program, run by corporations and foundations that have committed to aligning significant investments in underserved communities with investments made by the federal government, is now supported by Citi.
Focused on engaging and strengthening community financial institutions, including community development-focused financial institutions (CDFIs), and minority depository institutions (MDIs), this support is being provided by the Citi Foundation's Action for Racial Equity, which allocated $1.1 billion to help close the racial wealth gap and increase economic mobility.
In just the first year of a three-year commitment, Citi has already invested more than $1 billion in these efforts, bringing the company close to meeting its financial commitments by the end of 2023.
“At Citi, we recognize that closing the racial wealth gap is not only imperative for communities but for businesses. We need collective action from both the private and public sectors to address systemic socioeconomic issues and increase economic mobility. That’s why we’re partnering with the Economic Opportunity Coalition to help strengthen financial inclusion and deepen Citi’s racial equity commitments,” said Jane Fraser, CEO of Citi.
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In early 2022, the Citi Foundation launched an initiative, backed by $50 million, to support innovations by nonprofit organizations working to advance the field of community finance. In addition, the financial group created the Diverse Financial Institutions Group, a dedicated team within the company that is responsible for leading and expanding the company-wide engagement with MDI, various broker-dealers, and various asset managers.
“The investments EOC members have already made to accelerate economic opportunity signals a promising new era in historic investment to help close the wealth gap in the U.S., but we recognize we must do more. We’re excited to work with organizations like Citi, who have been critical in advancing equity and inclusion in our communities, and we look forward to leveraging our collective resources to implement changes that can have a lasting impact on our society,” stated Michael Roth, Managing Partner, Next Street and lead of the Economic Opportunity Coalition.
These are the four focus areas in which the EOC has made commitments:
- Invest in CDFI and MDI
- Support entrepreneurship and minority-owned businesses
- Expand inclusive and equitable access to credit and other financial services that facilitate financial health
- Make infrastructure investments that create more community wealth
“The EOC will coordinate across public, private and social sector organizations to develop and deploy new products and services that solve issues in getting resources where most needed and hold itself accountable for meaningful action,” City highlighted.
With operations in more than 160 countries and jurisdictions, Citi is a preeminent banking partner for institutions with cross-border needs, a global leader in wealth management, and a United States personal bank. It offers corporations, governments, investors, institutions, and individuals a wide range of financial products and services.