For all the advantages offered by the fintech revolution, there has continued to be a gap in access for traditionally marginalized groups, with many Black-owned businesses still struggling to access financial services.
Fortunately, as demonstrated in a recent report from The Washington Post, Black-owned small businesses are uniquely positioned to receive better help from fintech firms than from traditional banks. And with the wave of PPP loans disbursed in the wake of the COVID-19 pandemic, there has been a boom in funding for Black entrepreneurs that is expected to ripple far into the future.
“The more vehicles we have in terms of access to capital the better,” said Everett Sands, Chief Executive Officer of small business lender Lendistry, in an interview with Black Enterprise. Sands suggested the improved methods of financial access offered by fintechs could even “lead to things such as alternative credit models and maybe an alternative process to how we provide access to capital, as well as the basics of responsible lending so that our communities don’t have to go towards predatory lending and other sources that might not act responsibly.”