In the latest commitment to correct racial inequities, JPMorgan Chase & Co. said Thursday it would devote $30 billion to lifting underserved groups, particularly Black and Latinx communities. By one account, the investment is roughly 10 times more than all other Fortune 100 companies have pledged, combined.
As part of a sweeping set of initiatives planned over the next five years, JPMorgan said it would increase homeownership, make housing more affordable, and improve access to banking services. Loans, equity investments and direct funding will also be put toward small businesses, improving workforce diversity and increasing philanthropy in underserved communities of color, the bank said in a statement.
JPMorgan joined a growing chorus of the corporate world making financial commitments to help reduce the racial wealth gap. According to a September analysis by Axios, other Fortune 100 companies have contributed a total of $3.3 billion toward racial equity initiatives since George Floyd, an unarmed Black man who was killed during an arrest, sparked an unprecedented anti-racist movement earlier this year.
“Systemic racism is a tragic part of America’s history,” JPMorgan Chief Executive Officer Jamie Dimon said in a statement. “We can do more and do better to break down systems that have propagated racism and widespread economic inequality, especially for Black and Latinx people. It’s long past time that society addresses racial inequities in a more tangible, meaningful way.”
Among the housing initiatives, the plan calls for 40,000 new mortgage loans for Black and Latinx households—$8 billion worth—and 20,000 mortgage refinancings—up to $4 billion worth. The bank will also allocate $14 billion in loans, equity and other investments to finance 100,000 affordable rental units in underserved communities.
JPMorgan also pledged to expand banking access by hiring 150 community managers to open branches in Black and Latinx communities, and to invest up to $50 million in Black- and Latinx-led financial institutions. That should help one million people in underserved communities open a checking or savings account, the bank said.
Additional money will go toward increasing Black and Latinx diversity within the ranks of JPMorgan. These efforts will include recruitment, training, and leadership opportunities within the organization.
Ending racial inequity in jobs, housing, lending, and financing would add $5 trillion to U.S. GDP over the next five years, according to a recent study from Citigroup.