I recently began my tenure as chief of operations with the Financial Alliance for Racial Equality (FARE), and for the first time in my career, I feel that my experience, talent, and passion are fully aligned with the organization I serve. FARE has been operating as a non-profit organization since September 2020 with a mission to increase racial diversity, promote greater equality and foster inclusion within the financial services industry and the communities they serve. It is a challenging task for such a young organization. However, we understand that disrupting the status quo in the world of finance to implement this vision with purpose is necessary for greater diversity.
It's fitting that my first few months coincided with Black History Month in February, Women's History Month in March, and now April—Financial Literacy Month. Each affinity group is a key part of who I am – a black woman in finance. Further, these three months relate directly to the interconnection that lies at the core mission of what FARE seeks to address in the industry.
Growing up in Ohio with working-class, blue-collar parents, I didn't necessarily see myself in the financial services space. Let's face it – there aren't many black and brown faces in this field, let alone black and brown women. Until recently, black women like Mellody Hobson, Lauren Simmons and even historical figures like Maggie Lena Walker is recognized for their work in the financial services industry.
The hard truth is that the financial services industry has never been diverse or inclusive. When I entered the industry, I was hungry to see anyone who looked like me or had a similar background. I spent those first few years trying to find my place, but as time went on, I started to hit my stride and make strides with the help of some key support systems.
While at Nationwide, I learned about a collaborative resource group called African American Women Active and Ready to Overcome (AWARE). It was here that I met other black women who would mentor me and help me find what I consider my heart's work and passion. For more, African American Leadership Academy it was a critical network in my development. As a member, the organization allowed me to grow and prepare to engage at the C-Suite level, which is critical to the work I do now for FARE.
Black and brown people often don't have access to these types of resources when trying to get into finance. I was one of the lucky ones who was able to access these networks. Knowing this makes me even more determined to ensure that we offer mentoring through FARE. Our inaugural HBCU Mentoring Program hosted 11 mentors and 25 mentees, numbers we hope to build on in the future.
DEI is not the devil
FARE's quest for greater diversity is not a new idea, but it remains necessary in today's world. With the recent push back against diversity, equity and inclusion programs, we are seeing many of the resources that have been in place for years running out. We believe that diversity in finance will be critical in addressing issues including the racial wealth gap, strengthening our overall economy, and fostering growth within our financial institutions.
Black and brown people often don't seek out financial literacy programs simply because they don't see people who look like them working in the bank. of painful story the struggle of black and brown people to build and maintain wealth has created deep mistrust between them and financial institutions, which to this day remain largely controlled by white men.
Clearly, if we want greater investment from people of color and brown, we need to meet them where they are—with greater diversity. the number of Black and Latino Certified Financial Planners it has certainly increased in recent years, but black professionals make up only 2% of all CFPs. with Black wealth projected to reach $103 trillion by 2050, now is the time for the financial industry to invest in a more diverse workforce.
We want the financial institutions we work with to understand that diversity is not the devil and is actually good for their bottom line. The CFP Board found companies with the lowest levels of racial diversity earn nearly 15 times less income than those with high levels of racial diversity.
FARE is meeting this challenge by focusing our recruitment efforts on students of color and partnering with Historically Black Colleges and Universities (HBCUs). In addition to mentoring, we have hosted educational summits and hired 7 interns and one full-time associate in the past two years. Most importantly, we're investing in a diverse future by offering over $80,000 in scholarships to help professionals of color prepare for the Certified Financial Planning (CFP) certification.
We are invested. We know that real change only comes when you don't just talk the talk, you walk the walk. And this is just the beginning.
What is expected next?
Moving forward, FARE is taking bold steps to increase diversity in the financial services industry. Recruiting, investing in, supporting and developing the culturally diverse groups of young people who will transform the industry is no small task – but we must and we will.
My journey to FARE has not been easy, but I am clear about the resources, networks, and support systems that have gotten me here. I am here because of my loving, hardworking and supportive parents. I'm here because of the mentorship. I am here because of the opportunity and access to programs like FARE that nurtured me as a whole person—a black woman in finance.
Now more than ever, holistic spaces within financial services are desperately needed. I want FARE to be the safe space for young black and brown people interested in finance as they begin their career journey. Furthermore, I want our partners and stakeholders to see the inclusion of diverse employees as an investment in the growth and sustainability of their company. When that happens, we all win.
I feel blessed to help lead FARE into this next chapter. This divine extension lets me know I'm supposed to be here. Not only do I have a seat at the table – this is my table. Now, the real work begins to bring more people into what will be OUR the tables.
Nicole Ridley is the Chief Operating Officer at the Financial Alliance for Racial Equality (FARE).