Diversity and equality

Minority depository institutions have limited budgets and staff to upgrade their technology. Some are turning to secondment programs and like-minded fintechs to tackle these problems.

Banks and other lenders revived special-purpose credit programs after racial-equity protests in 2020 prompted them to reexamine their services for historically underserved groups. Now they're taking those initiatives nationwide.

The challenger bank for Black and Latino individuals introduced Elevate, a membership-only tier that includes access to private clubhouses and networking aimed at people of color.

Daylight, which launched less than two years ago, is building a subscription service that helps LGBTQ customers overcome the complexities of starting a family.

Machine learning and automation could be pivotal in helping consumers and small businesses outside the mainstream access credit and other basic banking services, several panelists said at the Financial Technology Association's inaugural Fintech Summit.

America's largest bank says it wants to make it easier for small businesses in communities of color to get loans. Under its program, applicants who previously may not have been approved are more likely to get an OK, and borrowers who received higher rates could qualify for a cheaper loan.

Simpler and more inclusive application processes are helping these lenders address the pain points that underserved borrowers encounter at other institutions.