Black college students are afraid they will face additional challenges that whites do not encounter if they pursue a career in the financial industry, according to Nationwide Financial.
To counter that apprehension, Nationwide and other financial services organizations, associations and historically Black colleges and universities have created the Financial Alliance for Racial Equity.
“This is an opportunity for advisors—as their customer base changes—to become more diverse,” said John Carter, president of Nationwide Financial, in an interview Wednesday. “Ninety percent of Black college students [considering entering the financial industry] said they felt they would face challenges that would hold them back. This is a problem in the industry that we need to solve.”
The alliance is designed to bring together partners to help fix that problem, he added.
Founding members of the alliance include Morgan Stanley, insurer M Financial Group, insurance brokerage NFP, the Employee Benefit Research Institute and Nationwide Financial, in partnership with Hampton University, Virginia State University, Virginia Union University and Winston-Salem State University. Howard University has also joined the alliance and other colleges and firms are expected to join in the future, Nationwide said.
“It does not matter what you look like or where you came from, financial services is a performance industry,” Carter said. Nationwide has an active internship program and a rotational program that allows new recruits to move through the company’s different divisions to find the right fit for them. The firm also holds exploratory interviews for those considering a career in finances.
Nationwide has traditionally had a diverse staff from the C-suite on down, “but no one can do this alone,” said Kristi Rodriguez, leader of the Nationwide Retirement Institute, in an interview. “As a product of Hampton University [a historically Black university], I am excited to work with the alliance partners to create a quantifiable impact in the financial services industry.”
“It’s imperative we continue to make progress toward racial justice and inclusion in this country and within our own firms,” Carter said. “Nationwide has a long history of supporting diversity, inclusion and HBCUs, and we are dedicated to driving change in the financial services industry, which has been slow to evolve. We know Black college students and financial professionals need to see real change. This alliance is the next step in our work to deliver that change and increase equity and representation in our industry.”
Members of the alliance also want to help build sustainable economic wealth in diverse communities, as well as increase the number of Black advisors and financial professionals through expanded research, increased training and mentorship opportunities. The alliance will provide Black college students with direct access to executive mentors at member firms, while also creating a new talent pathway for students at member historically black colleges and universities and leading financial services firms, Nationwide said.
“Our communities are wrestling with racial inequities, while consumers, business partners and our clients are looking to companies that not only say they are committed to diversity and inclusion but demonstrate action,” Rodriguez said. “It will take time as we learn together, but I am excited for what we can accomplish as a group.”
Nationwide has made a $1 million multiyear commitment to support programs that foster social justice.
“Joining this alliance reflects our belief that we will have a more meaningful and enduring impact when we collaborate with other organizations that share our dedication to eliminating racial inequity,” said Mike James, NFP’s head of individual solutions and president of NFP Life Solutions, in a statement.
Firms interested in joining the alliance can contact Rodriguez at [email protected]. Nationwide will hold a virtual summit with the partners in late November or early December.