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Forbes
24-06-2025
- Business
- Forbes
The Credit Gap: Reimagine Credit-Building For Marginalized Communities
Kevin Cohee, Chairman & CEO, OneUnited Bank, an award-winning CDFI and America's largest Black owned bank. Credit is often seen as a simple numerical score—a summary of financial responsibility. For millions of Americans, however, access to credit remains a complex barrier to opportunity and economic inclusion. Across the nation, many marginalized and underserved communities find themselves locked out of the traditional credit system, a reality with roots in history and consequences that still ripple today. Marginalized groups in the credit landscape are broader than often assumed. They include not only racial and ethnic minorities but also immigrants of many backgrounds, women, rural residents and low-income workers. Despite their diversity, these groups share common threads of systemic exclusion from traditional financial services, contributing to persistent inequities in wealth and opportunity. A History Of Barriers To Credit Access The challenges faced by these communities in establishing and accessing credit are not recent phenomena. They are the product of decades, and sometimes centuries, of exclusionary practices. During the 20th century, redlining—a discriminatory practice institutionalized in the 1930s by the Home Owners' Loan Corporation—systematically denied mortgage lending in communities of color, regardless of individual financial qualifications. These entrenched racial wealth gaps persist today. Similarly, immigrant populations, despite contributing substantially to the economy, often arrive without recognized credit histories, encountering hurdles in establishing financial credibility in their new country. Until the Equal Credit Opportunity Act was passed in 1974, women in the United States could be denied credit cards, loans or mortgages unless they had a male cosigner, regardless of income or financial independence. Meanwhile, rural Americans were frequently left out as financial institutions concentrated services in urban areas, limiting access to credit-building opportunities. Low-wage workers, despite stable earnings, often lacked the assets or formal financial histories that traditional credit models prioritize. Each of these historical realities created systemic disadvantages that continue to impact the ability of millions to fully participate in today's economy. When Alternatives Hurt: The Reality Of Predatory Lending Faced with systemic exclusion from mainstream financial services, many underserved consumers have turned to alternative lending options—often to their detriment. Payday loans are a particularly stark example. Marketed as short-term solutions for urgent cash needs, these loans can carry annual percentage rates (APRs) around 400%, according to the Consumer Financial Protection Bureau. For individuals with few other options, payday loans can rapidly spiral into cycles of debt, where borrowers repeatedly renew loans and pay far more in fees than they initially borrowed. Similarly, other "alternative credit" products—such as fee-laden rent-to-own programs or high-cost subprime credit cards—often promise quick access to credit but ultimately deepen financial distress rather than helping individuals build sustainable credit profiles. Predatory financial services prey on the very vulnerabilities created by systemic exclusion, exacerbating the financial fragility of marginalized communities rather than alleviating it. The Promise Of CDFIs In Expanding Access In contrast, Community Development Financial Institutions (CDFIs)—like my own bank—offer a model for inclusive credit expansion. Supported by the U.S. Department of the Treasury and other mission-driven investors, CDFIs specialize in providing responsible, affordable lending to individuals and businesses in underserved markets. Unlike traditional banks that may prioritize established credit profiles and significant assets, CDFIs often evaluate borrowers based on alternative criteria, offering personal attention, customized credit-building programs and lower-interest loans. They play a vital role in restoring trust where mainstream institutions have historically failed and offer a practical bridge to broader financial inclusion. Why Inclusive Credit Access Matters Expanding credit access isn't just a moral imperative—it's an economic one. When marginalized individuals can access fair and affordable credit: • Homeownership rates rise, strengthening families and neighborhoods. • Small businesses flourish, creating local jobs and revitalizing communities. • Education becomes more attainable, leading to a stronger and more skilled workforce. • Emergency preparedness improves, reducing societal burdens related to financial crises. Inclusive credit-building is, fundamentally, an investment in America's shared prosperity. Strengthening the financial footing of all communities enhances resilience and dynamism across the entire economy. Reimagining The Path Forward: Solutions And Approaches True change demands innovative, inclusive solutions that address historic inequities while building sustainable credit opportunities. To that end, the following strategies offer a path forward: Expand alternative data use: Encourage credit bureaus to include on-time rent, utility and mobile phone bill payments as part of credit scoring models, making visible the responsible financial behavior of millions. Promote accessible credit-builder products: Develop affordable credit-builder loans and secured credit cards with transparent terms, designed specifically for consumers new to credit or seeking recovery from past financial hardships. Support employer-sponsored financial wellness programs: Create opportunities for employers to offer small-dollar loans, emergency savings programs, and financial education that can help employees improve their credit standing. Invest more in CDFIs and mission-led lenders: Increase public and private investment in CDFIs to expand their reach into rural, immigrant and low-income communities nationwide. Enhance community-based credit education: Partner with local organizations to provide culturally relevant, accessible financial education tailored to the realities and needs of diverse communities. Modernize credit scoring methodologies: Advocate for more flexible and equitable underwriting practices that consider broader measures of financial behavior beyond traditional FICO models. Protect against predatory lending: Strengthen regulatory oversight and consumer protection laws to curb abusive lending practices that target vulnerable borrowers. Creating A New Path To Credit Equity Reimagining credit building for marginalized communities is not a small task, but it is a critical one. It is time to acknowledge that the barriers preventing equitable credit access have been built into our financial system for far too long, and now, it's time to dismantle them. By investing in inclusive innovation, empowering underserved communities to thrive and ensuring financial access for all, we will not only open doors to opportunity but also unlock the full potential of our nation. Let's build a financial system where credit is a bridge to opportunity, not a wall that keeps millions locked out. Together, we can create a future where economic success is within reach for every American. The information provided here is not investment, tax or financial advice. You should consult with a licensed professional for advice concerning your specific situation. Forbes Finance Council is an invitation-only organization for executives in successful accounting, financial planning and wealth management firms. Do I qualify?
Miami Herald
09-05-2025
- Business
- Miami Herald
Why is it so hard to afford a home in South Florida? See the challenges
South Florida Why is it so hard to afford a home in South Florida? See the challenges South Florida's housing market remains tough for many residents, despite new developments like Soleste Hollywood Blvd and renovations of iconic sites such as the Hollywood Bread Building. Although rents have started to drop in areas like Miami, the income needed to afford even basic apartments far exceeds what most people earn — with a nearly $38,000 gap between the income required and typical renter earnings. Programs from local banks, such as OneUnited's forgivable down payment loans, aim to bridge the ownership equity gap but only help eligible first-time buyers. Living wage requirements are climbing, with singles and families alike needing much more income each year just to cover essential costs in Miami-Dade. Affordable options like University Station and Sawyer's Walk are emerging, yet high-end developments dominate, highlighting the mismatch between new supply and the growing demand for reasonable housing. Soleste Hollywood Blvd at 2001 Hollywood Blvd is pictured hovering among existing buildings on Sunday, Sept. 15, 2024, in Hollywood, Florida, as the city shores up its housing needs with development in its downtown area in an attempt to address the city's affordable housing needs. By Carl Juste NO. 1: EVEN AS HOLLYWOOD BUILDS MORE APARTMENTS DOWNTOWN, AFFORDABILITY REMAINS A CONCERN A look at what is coming and why it might not be enough to ease housing pressure | Published October 4, 2024 | Read Full Story by Raisa Habersham OneUnited Bank in West Little River is working with first-time homebuyers to make homeownership a reality. By MATIAS J. OCNER NO. 2: SAVING FOR A DOWN PAYMENT IN MIAMI? A BLACK-OWNED BANK IS OFFERING FORGIVABLE LOANS A new program offered by the Black-owned OneUnited Bank is offering certain first-time homeowners in Miami forgivable loans of up to $50,000. | Published January 27, 2025 | Read Full Story by Michael Butler A view of a resurgent Northeast Second Avenue in the heart of Miami's Overtown neighborhood in April 2021, with the Plaza at the Lyric apartments at left and a Red Rooster restaurant in the background at right. By Pedro Portal NO. 3: RENTERS ARE PAYING LESS FOR APARTMENTS IN MIAMI, BUT THERE ARE ISSUES. SEE THE COSTS Here's a look at housing costs and ways to navigate the crisis. | Published March 14, 2025 | Read Full Story by Howard Cohen Marina C., 30, lives in a one-bedroom apartment in South Miami-Dade with her husband and four children. They struggle with high rent and low wages, leaving them with limited funds for essentials like furniture, a larger apartment, baby items, clothing, food and a computer for their children. Marina reflects on seeking a better life while caring for her two-month-old son, Anthony J., on Dec. 18, 2024, in a Miami Herald Wish Book story. By Carl Juste NO. 4: HOW MUCH DOES YOUR LIVING WAGE NEED TO BE TO MAKE IT IN MIAMI? HINT: IT'S GOING UP Here are 2025 Living Wage figures for Miami-Dade and Florida. | Published March 24, 2025 | Read Full Story by Howard Cohen The summary above was drafted with the help of AI tools and edited by journalists in our News division. All stories listed were reported, written and edited by McClatchy journalists.
The Star
09-05-2025
- Health
- The Star
He's almost 90, but he wants to teach seniors how to use tech
MIAMI: Bertie McCulloch's smartphone has kept him safe in ways he hadn't imagined. McCulloch has hypertension and began using his phone to monitor his blood pressure. He would then give that information to his doctor. Based on the data collected, McCulloch's doctor was able to determine his medication was about 30 milligrams too much. It was then that McCulloch, 89, realised that other people his age need to understand the nuances of technology and how it can be helpful to their everyday lives. That is why he'll be teaching other seniors in North Miami about how they can get comfortable using technology. 'Right now, I'm down to 10 milligrams, and I don't have the fluctuations that I experienced before,' he told the Miami Herald . 'I would like to explain to them that they can help themselves by monitoring these certain things.' The event, NoMi Tech Senior Smart Living Luncheon, is one of many during NoMi Tech Month, North Miami's month-long effort to infuse technological skills and funding into its backyard by offering training to residents and business owners. McCulloch will sit on a panel with OneUnitedBank president Teri Williams and North Miami IT director Claude Charles to discuss why it's important to understand tools and offer tips to seniors who may be tech-averse. LaShevia Burns, president of Bringing Tech, will also lead a senior tech session. 'One of the things that we are more intentional about is making sure that all generations are included in this process,' North Miami Councilwoman Mary Estimé-Irvin told the Miami Herald. 'North Miami has a very large, diverse community. There's a large Haitian American community, a large Hispanic community, and the seniors are sometimes left behind. So I'm very excited about bringing in awareness and having a luncheon that makes them comfortable to adopt technology and not to be scared that they're not able to handle a big old computer.' NoMi Tech began in 2023 as a partnership between Lightship Foundation, an organisation that provides resources and support to tech business founders from diverse backgrounds. The goal is to help make North Miami a viable tech destination for businesses. The event has since grown and this year included a drone pilot program for adults and an afterschool music program for youth. Estimé-Irvin said it was a no-brainer having McCulloch teach to seniors. 'Just like anything else in life, when your peers are the ones participating, it's just believable,' she said. 'It's credible, and you can see that it's possible.' In North Miami, a city with a predominantly Black population, 97% of households have access to a computer and another 81% have Internet access, according to recent US Census Data. About 14% of the population is 65 or older. McCulloch's goal is to make his fellow seniors more comfortable with computers and smartphones and how to use them. For him, it's more than simply using the devices, it's about finding online communities, keeping track of appointments and scheduling prescription refills. Still, he says, he knows many seniors are worried about the dangers they potentially face while using technology. 'We don't like our information out there, and there is that kind of sense that you're giving up too much when you do all of that,' McCulloch said. Staying connected McCulloch, who was born and raised in Jamaica, has seen tech come and go, from beepers to Blackberrys to iPhones. He moved to New York in the 1960s when his wife was recruited for a nursing job. At the time, he worked as a junior chemist for Schenley Industries before working at Technicon Corporation, where he saw the company transition from manual system of analysing blood to a more automated process. McCulloch eventually worked at the New York City Health and Hospitals Corporation, and again, he witnessed the way tech changed another workplace. 'The evolution of technology and computer systems could not be avoided in the path that I was on,' he said. 'You couldn't avoid it. You embraced it because this was the trend. This was what was going to make you more efficient, and everything will be more accurate.' McCulloch moved to South Florida in 2012 after he retired and was convinced by his children to get a smartphone. He was slightly hesitant, like most senior citizens, but obliged as he'd had more experience with technology than most people his age, he said. The youngest of 10 children, McCulloch's only remaining sister died last year at 98. He described her as being in great shape, with a sharp mind who frequently used her tablet. It's what he desires for himself and his peers. 'The awareness of being in the present with everything around you is so important now,' he said. McCulloch knows it can be a challenge because seniors might not trust the technology. 'When you talk about seniors' struggles with technology, it has to do with the negativity surrounding social media and the cybersecurity aspects of it,' he said, adding he'd stopped using Facebook altogether after he got hacked several times. Still, he encouraged those who do use it to change their passwords frequently. He also cautioned against clicking on every popup or ad they see on the screen, adding that it may lead them to a website that asks for sensitive information. McCulloch also noted that there are resources for seniors so that they don't encounter misinformation online and recommended that they use Snopes as a way to determine if something they see on the Internet is true. McCulloch said technology has its uses for seniors, such as building community outside of their homes, especially those who live alone. Having a community online can be helpful to avoid loneliness and also to be aware of what's going on in the neighbourhood. 'It's amazing the information that comes through that chat,' McCulloch said. 'You get alerted about people who might not be from your neighbourhood, about things that you're concerned about in terms of safety, and you get tips about how you should deal with it.' He added it's a good way to also keep up with community events and meetings. Ultimately, McCulloch wants seniors to understand the rapidly changing world around them. 'The times have changed so rapidly, almost everything you touch or go to is computerised,' he said. 'You have to make the effort to understand what is happening around you.' – Miami Herald/Tribune News Service
Miami Herald
29-04-2025
- Health
- Miami Herald
He's almost 90, but he wants to teach North Miami seniors how to use tech
Bertie McCulloch's smartphone has kept him safe in ways he hadn't imagined. McCulloch has hypertension and began using his phone to monitor his blood pressure. He would then give that information to his doctor. Based on the data collected, McCulloch's doctor was able to determine his medication was about 30 milligrams too much. It was then that McCulloch, 89, realized that other people his age need to understand the nuances of technology and how it can be helpful to their everyday lives. That is why he'll be teaching other seniors in North Miami about how they can get comfortable using technology. 'Right now, I'm down to 10 milligrams, and I don't have the fluctuations that I experienced before,' he told the Miami Herald. 'I would like to explain to them that they can help themselves by monitoring these certain things.' The event, NoMi Tech Senior Smart Living Luncheon, is one of many during NoMi Tech Month, North Miami's month-long effort to infuse technological skills and funding into its backyard by offering training to residents and business owners. McCulloch will sit on a panel with OneUnitedBank president Teri Williams and North Miami IT director Claude Charles to discuss why it's important to understand tools and offer tips to seniors who may be tech-averse. LaShevia Burns, president of Bringing Tech, will also lead a senior tech session. 'One of the things that we are more intentional about is making sure that all generations are included in this process,' North Miami Councilwoman Mary Estimé-Irvin told the Miami Herald. 'North Miami has a very large, diverse community. There's a large Haitian American community, a large Hispanic community, and the seniors are sometimes left behind. So I'm very excited about bringing in awareness and having a luncheon that makes them comfortable to adopt technology and not to be scared that they're not able to handle a big old computer.' NoMi Tech began in 2023 as a partnership between Lightship Foundation, an organization that provides resources and support to tech business founders from diverse backgrounds. The goal is to help make North Miami a viable tech destination for businesses. RELATED: Tech bootcamp: North Miami hopes to attract minority-owned companies with training The event has since grown and this year included a drone pilot program for adults and an afterschool music program for youth. Estimé-Irvin said it was a no-brainer having McCulloch teach to seniors. 'Just like anything else in life, when your peers are the ones participating, it's just believable,' she said. 'It's credible, and you can see that it's possible.' In North Miami, a city with a predominantly Black population, 97% of households have access to a computer and another 81% have internet access, according to recent U.S. Census Data. About 14% of the population is 65 or older. McCulloch's goal is to make his fellow seniors more comfortable with computers and smartphones and how to use them. For him, it's more than simply using the devices, it's about finding online communities, keeping track of appointments and scheduling prescription refills. Still, he says, he knows many seniors are worried about the dangers they potentially face while using technology. 'We don't like our information out there, and there is that kind of sense that you're giving up too much when you do all of that,' McCulloch said. Staying connected McCulloch, who was born and raised in Jamaica, has seen tech come and go, from beepers to Blackberrys to iPhones. He moved to New York in the 1960s when his wife was recruited for a nursing job. At the time, he worked as a junior chemist for Schenley Industries before working at Technicon Corporation, where he saw the company transition from manual system of analyzing blood to a more automated process. McCulloch eventually worked at the New York City Health and Hospitals Corporation, and again, he witnessed the way tech changed another workplace. 'The evolution of technology and computer systems could not be avoided in the path that I was on,' he said. 'You couldn't avoid it. You embraced it because this was the trend. This was what was going to make you more efficient, and everything will be more accurate.' McCulloch moved to South Florida in 2012 after he retired and was convinced by his children to get a smartphone. He was slightly hesitant, like most senior citizens, but obliged as he'd had more experience with technology than most people his age, he said. The youngest of 10 children, McCulloch's only remaining sister died last year at 98. He described her as being in great shape, with a sharp mind who frequently used her tablet. It's what he desires for himself and his peers. 'The awareness of being in the present with everything around you is so important now,' he said. McCulloch knows it can be a challenge because seniors might not trust the technology. 'When you talk about seniors' struggles with technology, it has to do with the negativity surrounding social media and the cybersecurity aspects of it,' he said, adding he'd stopped using Facebook altogether after he got hacked several times. Still, he encouraged those who do use it to change their passwords frequently. He also cautioned against clicking on every popup or ad they see on the screen, adding that it may lead them to a website that asks for sensitive information. McCulloch also noted that there are resources for seniors so that they don't encounter misinformation online and recommended that they use Snopes as a way to determine if something they see on the internet is true. McCulloch said technology has its uses for seniors, such as building community outside of their homes, especially those who live alone. Having a community online can be helpful to avoid loneliness and also to be aware of what's going on in the neighborhood. 'It's amazing the information that comes through that chat,' McCulloch said. 'You get alerted about people who might not be from your neighborhood, about things that you're concerned about in terms of safety, and you get tips about how you should deal with it.' He added it's a good way to also keep up with community events and meetings. Ultimately, McCulloch wants seniors to understand the rapidly changing world around them. 'The times have changed so rapidly, almost everything you touch or go to is computerized,' he said. 'You have to make the effort to understand what is happening around you.'
Miami Herald
18-04-2025
- Business
- Miami Herald
Partnership between Black-owned app and bank helps Miami renters build credit
Teri Williams, CEO of the Black-owned OneUnited Bank, is well aware of the challenges that many prospective Black homeowners face, including low credit scores. By partnering with the credit reporting app Esusu, OneUnited hopes to see its users build their credit based on their positive rental histories. The app reports consumers' monthly rental payments to credit bureaus to help them build credit. 'Historically, it has not been included,' Williams told the Miami Herald. 'They ding you when you pay your credit card 30 days late, but you may still be paying your rent every month on time.' Esusu — an African word for an informal, community-driven financial system — was founded in 2018 by entrepreneur Wemimo Abbey, who was inspired by his experience of emigrating to America. In 2003, Abbey emigrated to the United States from Lagos, Nigeria, with his family when he was 16. His mother didn't have a credit score at the time and fell victim to predatory lending, with some interest rates as high as 400%. 'I wanted to create a solution to help people lead their best financial lives,' Abbey said. The app also provides financial literacy tools for users to build healthier financial habits. Esusu customers need a bank account to use the app and are encouraged to open accounts with OneUnited. Williams and Abbey first met at January's BMe Conference in Miami and agreed that many Black people are saddled with debt and don't see homeownership as a possibility. The inclusion of rental history is one way that Williams and Abbey believe Esusu can help consumers in a significant way. Since the app's launch, users have reported their credit scores increasing as much as 45 points, according to Williams. Williams said she is hopeful the partnership will help Black residents create a more fruitful financial future for themselves. 'To us, this is exactly the kind of thing to do for our community,' she said. 'I think it's great for two Black-owned companies to work together.'
