In June of 2020, Netflix announced it was moving 2% of its cash, or $100 million, to bolsters Black-owned or Black-run banks, allowing those banks to lend more. Since then, Twitter has announced its plan to move 1% of its cash, or $100 million, to Community Development Financial Institutions (CDFI), which are institutions where 60% of total lending, services, and activities are targeted toward low-income people or places. Similarly, Costco has pledged to move $25 million, Biogen has pledged $10 million, and PayPal has announced plans to move $500 million. All told, early-adopter corporations have pledged to move nearly $800 million, an amount equal to nearly 20% of the total assets held today at Black-owned and Black-run banks.
Could Gen Z Consumer Behavior Make Capitalism More Ethical?
Netflix, Costco, and others are moving cash to Black-owned banks and businesses in response to public demand.
December 14, 2020
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Summary.
Large companies like Netflix and Twitter have begun moving cash to Black-owned banks as a sign of support for racial equity. The economic benefits to Black communities of these moves is significant, and research shows consumers in general–and young people in particular–approve of companies that join the “justice deposits” movement. It’s a sign that in order to win over younger consumers, companies need to be attuned to social issues and act appropriately.