By Jessica Scadron, VP of Strategic Communications, EveryoneOn
Last week, leaders from EveryoneOn, National Endowment for Financial Education (NEFE) and Union Bank discussed the connection between digital skills and wealth, and how well-run cross-sector partnerships close digital and financial gaps.
Digital skills are linked to financial literacy - taken together, both reduce poverty, minimize exposure to fraud and schemes; and give people access to better job planning, investing, saving and homeownership counseling.
People living in under-resourced communities, who are predominantly people of color, are most impacted by the lack of digital and financial inclusion resources available to them. Based on the American Community Survey, 18 million households still do not have access to the internet. What’s more, 55% of those surveyed in EveryoneOn’s recent national study reported lack of confidence in their digital skills to access online services.
Norma Fernandez, CEO, EveryoneOn; Dr. Billy Hensley, President & CEO, NEFE; and Kathy Patoff, Chief Operating Officer, MUFG Union Bank Foundation shared insights and approaches that foster economic stability. To start, connectivity and digital skills are critical for people to stay financially protected online. As Dr. Hensley shared, “Many unbanked or those interacting with predatory lending services often don’t have modern and safe digital access - they’re at the height of vulnerability when it comes to financial stability and literacy.”
Second, no one sector can close the digital divide on its own. Nonprofit, philanthropy, corporate and academia cannot rely on government alone and must work together to create lasting change. To wit, as a result of COVID’s negative impact on digital access, Union Bank decided to invest in digital equity. This is precisely why Union Bank partnered with EveryoneOn - for its expertise in providing internet access in digitally-redlined neighborhoods. “EveryoneOn’s deep community relationships, capacity-building trainings and device distributions enable Union Bank to understand the issue, reach more communities and have greater impact,” said Kathy Patoff of Union Bank. Union Bank, in turn, brings its financial prowess and the power of employee engagement to deliver that knowledge to communities.
Third, and not surprisingly, data needs to be inclusive so funders can advocate for digital equity investments. Funders must approach communities with humility and collaborative intent to truly serve them. Before investing, funders should go into communities and ask people what they want and need. Only then can they make informed, long-term, sustainable investments.
Financial institutions and philanthropy looking to make real change should take note of these approaches if they’re truly committed to fostering economic stability in historically marginalized communities. If you’re interested in partnering with EveryoneOn to have a greater impact, we’d love to hear from you: support@everyoneon.org.