Right now, there is an opportunity like never before for policymakers and the private sector to enact real and lasting change for millions of Americans — especially Native communities.
In Congress, the newly formed Financial Literacy and Wealth Creation Caucus is focused on building a pathway to support households in strengthening their financial wellness and achieving lasting financial security. The Department of Treasury is committing nearly $200 million in funding for underserved communities and billions more to improve broadband access, and leading companies are calling for a national strategy on financial inclusion.
Dawson Her Many Horses
Today, too many Americans lack access to critical financial services, including payment capabilities, credit, short- and long-term savings, and insurance, preventing them from achieving short-term financial security and, ultimately, from building lasting wealth.
When it comes to Native American and Alaska Native (NAAN) communities, these issues are even more acute. Nationally, NAAN households are unbanked at a rate of more than five times that of white households. While other racial/ethnic communities are making progress in accessing financial services, the percentage of unbanked NAAN households declined at a slower rate from 2017-2019 than any other racial/ethnic group. NAAN households have the lowest rates by demographic group of savings for college, retirement, and for an emergency.
These are all parts of what we at Wells Fargo call “The Wealth Creation Loop.” The loop shows how disparities at each stage further the wealth gap for NAAN families – from inheritance to retirement. Compounding the problem is the foundational role infrastructure plays to financial security and banking access and the disparities facing NAAN communities: NAAN households have the lowest home internet access and the lowest mobile phone and smart phone access of any racial/ethnic group.
National banks are well-positioned to go right at the problem by focusing on core areas of need where inclusive investment can foster economic security and resiliency. For over 60 years, Wells Fargo has been a leading provider of capital and financial services (to Native American communities?), banking more than 400 NAAN tribal entities in 25 states. Since 2018, we have invested more than $50 million to serve NAAN communities, focusing on everything from household financial health and retirement savings to housing affordability.
In recent years, public and private partnerships have formed to think comprehensively about this national problem, and work to bridge the gap for native communities is already underway. We’re proud to partner with the Aspen Institute to bring together tribal leaders, federal officials, researchers, and business leaders to build a more inclusive financial system. We’re working together to improve the economic data about tribal communities, which is critical for investment opportunities in those (or their)? communities.
Wells Fargo is proud to be among the 110-plus signatories of the Aspen Institute’s industry letter calling for a national strategy for financial inclusion. Sixty countries worldwide have developed a comprehensive national financial strategy to address gaps in access to critical financial services, according to the World Bank, and these efforts directly contributed to the growth of their nations’ GDP. There’s no reason we cannot do the same.
Here in Nevada, we are fortunate to have leaders in Congress working to create lasting change for native communities. Congressman Steven Horsford sits on the House Financial Services Committee and is a member of the Financial Literacy and Wealth Creation Caucus. Similarly, Sen. Catherine Cortez Masto sits on the Senate Banking Committee, as well as the Committee on Indian Affairs. She brings an important voice to the bipartisan efforts of her colleagues in the Senate working on financial resilience and addressing tribal communities’ needs.
Nevada’s congressional delegation is well-positioned and playing a leadership role in developing and advancing policies that address the financial uncertainties facing NAAN communities across the country. We commend this leadership and are excited to see other members of Congress from across the U.S. join in the Financial Literacy and Wealth Creation Caucus and work to keep our tribal communities at the forefront of the discussion on financial inclusion.
NAAN voices are underrepresented, and bringing in leaders from these communities can help inform our own policy and decision making. We thank Nevada’s lawmakers for engaging with NAAN communities and look forward to continued collaboration within our state to instill lasting, generational change.
Dawson Her Many Horses is an enrolled member of the Rosebud Sioux Tribe of South Dakota. He is managing director and Head of Native American Banking for Wells Fargo, the leading provider of capital and financial services to the Native American and Alaska Native markets.