The story of Black wealth in America is inseparable from the history of the U.S. financial landscape.
The prosperity of Black Wall Street in Greenwood, Oklahoma and the success of early Black entrepreneurs and financiers is every bit as consequential to modern financial services as the Buttonwood Agreement that formed the underpinnings of the New York Stock Exchange.
It is only recently that the work of Black trailblazers in finance has begun to re-enter the wider conversation. Celebration of Black prosperity goes hand-in-hand with hard conversations about the racist retaliation and systemic headwinds that shut Black entrepreneurs and investors out of traditional forms of wealth-building for much of U.S. history. But these are stories that deserve to be shared, because the world is changing, and financial services need to embrace that change.
The Association of African American Financial Advisors projects that Black wealth will reach $103 trillion by 2050. More Black households take part in the financial market, more Black professionals are represented in the wealth management industry, and more Black families are set to take part in the great generational transfer of wealth. Taken on its own, this represents incredible progress. In a wider context, it is a call for financial services to stand up and do more.
While the CFP Board touts recent gains, there are still only 1,899 Black CFP Professionals, accounting for 1.9% of all certified financial planner professionals. LeCount Davis, the first Black CFP Professional, is still active within the wealth management industry. Black wealth-builders need to make up for ground lost by discriminatory wages, the long-lasting impact of redlined districts in home mortgages, and a K-shaped pandemic recovery that has widened the racial wealth gap.
Black wealth, and Black financial needs, require a level of insight and lived experience from the wealth management industry that can only come from greater Black representation. This representation can offer culturally relevant financial advice, advocate for equitable access to financial products, and mentor the next generation of Black financial professionals.
Any financial advisor will tell you that wealth is a lot more than numbers. Wealth is linked to our emotions, our cultural background, and our own experiences. As more Black professionals enter the field, they bring diverse perspectives that can lead to innovative solutions for wealth-building in historically underserved communities. Black voices also elevate the discourse and professionalism of the entire industry by default. Dasarte Yarnway, Head of Community at Altruist, frequently shares sharp insights on RIA digital marketing for growth. Julian Davis, Director at Homrich Berg, has established himself as a Black tax professional to follow in 2024.
Black financial professionals deserve to be fiercely proud of both their legacy and path to the future. This shift towards inclusivity not only enriches the financial landscape but also ensures that the legacy of Black economic empowerment continues to inspire future generations.