Fintechs rally for social justice online, but what is being done offline?

On Blackout Tuesday, many fintechs took to social media to protest systemic racism and police brutality against black people. Companies like Plaid , Varo Money , Chime and Kabbage all posted messages on Twitter calling for action in the fight for racial justice. “Plaid stands in solidarity with the Black community in the fight against racism and injustice today and every day,” Plaid tweeted . “And yet, words are not enough. There is a lot of work to do.” Although messages on social media are meant to show support for the black community, activists have pointed out that real action goes further than such messages. Some argue that social media posts without action are merely self-serving. “This performative ally stuff is not helping, and this really catered to the people who want to show that they care,” Feminista Jones, author of “Reclaiming Our Space: How Black Feminists Are Changing the World From the Tweets to the Streets,” told Vox. “They thought this little black box was going to be solidarity. I’m like, ‘This is not how movements work. This is not how we’re supposed to be using social media.’ And people fell for it because it takes minimal work and minimal effort.” Plaid, for its part, has announced a civic engagement program so employees can take time off to participate in peaceful protests, vote and other civic-minded activities, a company spokesperson told Bank Innovation . In addition, Plaid in the past week made “meaningful” donations to the National Association for the Advancement of Colored People, American Civil Liberties Union, WeTheProtestors and Black Lives Matter. The data aggregator is spearheading programming to educate employees about allyship and the history of racism, in addition to leading discussions via educational material and workshops on inequality, race and systemic violence in the U.S. Blackout Tuesday started as a movement in the music industry to protest exploitative profiting from black artists. The #BlackoutTuesday hashtag quickly spread through Instagram, Facebook and Twitter as individuals and companies alike posted black squares in their feeds and messages of support in solidarity with the black community. The social media campaigns came days after protests erupted across the country, sparked by systemic racism and injustice brought to light by the recent deaths of George Floyd in Minneapolis, Breonna Taylor in Louisville, Ky., and Ahmaud Arbery in Brunswick, Ga. SMB fintech lender Kabbage penned a promise on Twitter as part of the Blackout Tuesday movement saying: “We must do better as a country for our communities, small businesses and families. We will start with Kabbage and will enact permanent changes to fight for equality.” Kabbage’s diversity and inclusion council, established over a year ago, is “outlining next steps as a business so our actions are thoughtful, longstanding and impactful,” a company spokesperson said. Mobile banking startup Varo Money has used its Twitter platform this week to “amplify real voices and stories from the Black community,” according to a company tweet . The startup shared several personal stories and experiences of black people as part of the #AmplifyMelanatedVoices movement. Varo said it didn’t have any more information to share about its activist initiatives. Chime, another fintech that took to Twitter to express support for Black Lives Matter, did not respond to a request for details of what that support entails beyond that post. Large financial services firms this week pledged billions of dollars to fight racial inequality. SoftBank , which backs fintechs like Kabbage and OakNorth, launched a $100 million fund to invest in startups led by people of color, according to published reports. Meanwhile, Bank of America — which, in 2011 was slapped with a $335 million fine to settle discrimination charges via its Countrywide Financial brand — has pledged $1 billion to a four-year commitment geared toward supporting communities of color, minority-owned small businesses and black and Hispanic educational institutions. Time will tell if this week’s fintech activism translates to long-term action. “As a company, we acknowledge that systemic racism does not start and end with police brutality,” the Plaid spokesperson said. “Current events are holding a microscope to the issues at play and making us ask ourselves how we can do better to strive towards a more equitable future.”

Fintechs rally for social justice online, but what is being done offline?

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