This blog is based on research featured in the report "The Financial Services Market: African Americans" by Packaged Facts.
Weighed against a historical backdrop long defined by discrimination and loss of financial opportunity, finding that African American households have a lower-than-average share of consumer wealth may not surprise anyone. But does an estimated 3% share of estimated 2019 U.S. household wealth surprise you?
After all, Brown v. Board of Education, the Supreme Court case that declared unconstitutional state laws establishing separate public schools for black and white students, was decided 65 years ago; and the U.S. Civil Rights Act, intended to end discrimination based on race, color, religion, or national origin, was decided 55 years ago. Surely, in this span of time, things have changed for the better. And to degrees, at least more recently, they have: African American’s household worth share has risen to 3% in 2019 from 2.6% in 2010. Even so, African American-only households comprise more than 13% of all U.S. households, suggesting that financial parity is a long way off.
Nevertheless, for those financial services companies seeking to serve African American households, that 3% wealth share translates to an estimated $2.9 trillion in 2019, up 70% from 2010—underscoring post-recession financial gains—and representing millions of middle- and higher-income households.
-- by David Morris, senior consultant