Visa launches multi-year program to address economic inequality and provide expanded access and opportunity for minority-run banks and communities of color across the United States
The Minority Depository Institutions Acceleration program will be supported by Visa with up to $100 million through Minority Depository Institution (MDI) deposits.
MDI is a federal designation for banks and credit unions that are 51% owned by Black Americans, Asian Americans, Hispanic Americans, or Native Americans. The FDIC shows there were 143 MDIs in the United States and its territories as of June 30, with collective assets exceeding $254 billion.
In addition to investing in MDIs to help them generate loans, Visa will also provide banks with actionable insights and digital solutions to solve problems and meet the needs of the communities they serve.
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“Visa recognizes 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 linked to various communities,” said Michelle Gethers ClarkDirector of Diversity 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 advances our shared goal of uplifting everyone everywhere,” added Gethers-Clark.
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Through the Minority Depository Institutions Acceleration 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 “quantitatively capture how they are supporting their communities,” which can help them secure new investments.
MDIs will also have “first in-country access” to enhancements to Visa’s Spending Momentum Index (SMI), which offers aggregate information on consumer spending and can shed light on the economic health of communities.