S6E3: Making Capitalism Work for Everybody
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We are exploring economic inclusion this season, and today we are diving into the history of banking and financial structures in the United States and how they have often excluded minority groups.
Ashley Bell is the co-founder and general counsel of the National Black Bank Foundation, which provides nonprofit expert legal, regulatory, and operational support to Black-owned banks. And Sui Ling Panoke currently serves as Senior Vice President of Diversity, Equity, and Inclusion for Zions Bank.
In this episode, Ashley and Sui Lang sit down with host Frances Johnson and discuss how banks were leveraged against people of color from the very beginning, finding a bank that supports your values, minority depository institutions, and some exciting developments right here in Utah, aimed at addressing and closing the racial wealth gap.
Eccles Business Buzz is a production of the David Eccles School of Business and is produced by University FM.
Episode Quotes:
The power of risking in yourself
[14:14] Ashley Bell: There’s been several studies that show there’s been over a trillion-dollar impact that discrimination and lack of access to capital to underserved communities is costing us a trillion dollars annually in our economy in spending. This is spending power that communities would have more of if they had access to the capital. And when you think about it holistically, the more you stymie the economy by telling people they can’t have access to capital to take a risk and start their own business, to be able to receive the right capital to own their own home and create assets that way through appreciative home value. Then you take a marginalized community, and you leave them with fewer options, many of which become the burden of the state. Many of that, which becomes welfare programs, become more government assistance, and these people have to be reliant on that to be able to survive. So if you really want to see less reliance on the government having to step in and take care of people that can’t make it work, then give them the opportunity to take a risk on themselves.
There’s no greater act of self-determination than entrepreneurship
[15:05] Ashley Bell: If you really want to see less of a reliance on the government having to step in and take care of people that can’t make it work, then give them the opportunity to take a risk on themselves. There’s no greater act of self-determination than entrepreneurship. And you have so many entrepreneurs in these marginalized communities that just need access to create businesses. And many times, these are small businesses that could easily be sustained in these small economies in their own community, but they don’t get the access to do so.
On Zion’s bank commitment to close the gaps
[22:33] Sui Lang Panoke: One of our core values is equality. Equality, opportunity, and access. So, we are very committed to closing gaps. So, it could be the gender pay gap, it could be the racial wealth gap, and it could be the trust gap and opportunity gaps that still exist in our communities as well. So, it’s very important to us to invest not just monetarily but through building relationships, right? Mending those trust gaps that still exist in ways in which we can build meaningful relationships, meaningful partnerships, and work towards building the world’s most inclusive economy.
What is the core of redemption?
[18:54] Ashley Bell: Throughout our history, people in marginalized communities have not received any grace or mercy from our financial system. This is what redemption is about. With grace and mercy, there can always be redemption. And we think that we can give that opportunity to people who are looking for it. And we’ll start in Salt Lake, but be the center of gravity for an entire nation.
The key to institutional sustainability
[24:38] Sui Lang Panoke: A critical part of building a long-term sustainable and profitable institution in our industry is staying true to who you are and focusing, honing in on what your values are, who you are as an institution, and what is going to carry you through the next generation.
