March 3rd represents a significant date in American history, albeit one that is little known. Earlier this week, in 1865, President Abraham Lincoln signed legislation establishing the Freedman’s Bank, which was organized and designed to ‘teach freed slaves about money.’ Sadly, this initiative to create equal access to the banking economy for all Americans was but a short-lived victory. Just one month later, President Lincoln was assassinated, and the bank, despite Frederick Douglass’ efforts, never survived. The 37 branches in 18 states all closed, thereby greatly restricting access to capital, financial literacy, economic inclusion, and financial dignity for all.
Many of these limits to financial inclusion still exist today in the form of a bank account’s minimum balances, overdraft fees, access to decent and affordable housing, and financial literacy – all of which disproportionately affect Black and Brown communities, rural populations, recent immigrants, and other historically under-served segments of society. The Civil Rights Movement of the 1960s also was, and remains to this day, a Silver Rights Movement, one focused on advancing financial and economic opportunity for all, and addresses such social injustices through an economic lens.
Born out of the social and economic unrest that erupted after the Rodney King incident in the early 1990’s, the Atlanta-based nonprofit Operation HOPE has been directly addressing these matters by providing free financial coaching services on such topics as credit and money management, home ownership, and small business entrepreneurship. We envision an America where everyone thrives in a capitalist economy and opportunity abounds. In 2023 alone, we delivered 280,000 financial coaching services to 57,000 individual clients; we raised client credit scores by an average of 41 points, reduced client debt by almost $2,000, and increased client savings by more than $1,100. Perhaps most significantly, we reduced the number of unbanked and underbanked clients from 23% to 12%.
As impressive as these accomplishments may seem, we recognize that much work still needs to be done. We need legislation that ensures financial literacy will become a part of every American’s educational experience. Our banks must continue to strive to become institutions of greater inclusivity, and access to capital and decent housing needs to be expanded.
Last year, Operation HOPE launched the 1865 Project, in honor of President Lincoln and Frederick Douglass’ Freedman’s Bank. Our ambitious initiative is designed to enable us to continue to innovate and identify and meet the ever-changing needs of the populations we serve. This year, the week of the anniversary of the Freedman’s Bank, we invite you to consider what we can all do to ensure our economy is accessible to all, is a place of inclusivity and empowerment, and is a springboard to financial dignity for every American.
This column was originally published in SaportaReport on March 5, 2024.
