Dear reader,
Welcome to the fifth edition of the Forum File. This issue, we are highlighting how our members are fulfilling their commitments to create a more equitable and inclusive economy as we continue to recover from the pandemic.
Thanks for reading, and don’t hesitate to share your thoughts.
Kevin Fromer, President and CEO, Financial Services Forum
Penny For Your Thoughts
“We are listening to our employees and know how deeply concerned they are about the ongoing challenges facing their communities and society as a whole. They want to contribute and be part of an organization committed to driving positive change.” – Jolen Anderson, Global Head of Human Resources and Global Impact Citizenship at BNY Mellon
How is BNY Mellon investing in the people and communities it operates in?
It’s hard to categorize all the ways the global pandemic has changed our society, but two substantial areas it has highlighted is the need to continue to digitize the processes and programs we all rely on and the even more urgent need for us all to address widespread racial, social, economic, and health-related disparities. As we have considered our giving strategy following the pandemic, we’ve recognized the incredible opportunity of combining these two areas (people and community) to ensure all communities have access to the digital economy.
In pursuit of this idea, we are supporting efforts that educate, train, and develop traditionally underrepresented communities in the business and advanced technology fields. Especially young people will need to possess critical, foundational technical skills, soft skills, and relevant work experience to maximize their potential in the future economy. At the same time, others need support reskilling and upskilling.
What steps are BNY Mellon taking to support the education and training underserved communities need to truly access the future digital economy?
A core part of BNY Mellon’s philanthropic efforts and overarching philosophy around employee volunteerism is a commitment to developing a workforce for the future – one that is equipped to meet the demands of a technologically-driven society.
In the past year, we’ve taken critical steps to support this goal. In 2020, we made a $20 million, multiyear commitment to academic and job training organizations for educational and workforce development programming. Building on our existing workforce initiatives, we are investing in the educational success of underserved populations, upskilling and reskilling members of the communities we work in. Specifically, this commitment includes $10 million to City University of New York (CUNY), a long-standing grantee for BNY Mellon, to underwrite the launch of the NYC Future of Work Initiative to further expand the BNY Mellon Transfer Scholarship Program. We also committed $5 million to the Community College of Allegheny County (CCAC) to establish the BNY Mellon Early College in High School program.
The remaining $5 million of our Future of Work commitment includes investment in additional workforce training to better equip individuals with skills, experience, qualifications and access to a tightening labor market through 2022.
What other strategies is BNY Mellon pursuing to ensure positive, impactful change?
Beyond our efforts to support our Future of Work initiative, we are also Committed to Putting the Future First by powering a new era of ESG. BNY Mellon is committed to using our reach, market influence and resources to help address a variety of pressing global environmental, social and governance (ESG) issues. We aim to accelerate the evolution of ESG—on behalf of clients, investors, communities and all the stakeholders—to make a positive impact on people and the planet.
With our size, scale and significance at the heart of the financial system, we touch many points along the financial value chain-giving us an unparalleled view of the continuous shifts in ESG. We’re uniquely positioned to collaborate with clients to drive transparency, insight and impact.
Recently, we published our Considering Climate Report which clearly and publicly outlines our approach and commitment as a global financial institution to sustainability and combatting climate change.
We also hosted the Future First Forum to help foster a larger conversation about what our industry and others can do to develop meaningful ESG strategies and share ideas that help us all truly safeguard the future.
Value Add
Member program spotlight
Community Impact, Skills-based volunteering, and signature pro-bono program
Since the launch of our Community Impact Program in 2008, BNY Mellon employees volunteered nearly 1.3 million hours valued at approximately $25 million.
Skills-based volunteering leverages the company’s greatest asset — our employees’ knowledge and expertise — and opens opportunities to make an impact on society. In this regard, 2020 was no exception. Despite the lockdowns and restrictions on in-person activities, employees from 16 countries continued to volunteer in 2020.
Many volunteer projects pivoted to virtual volunteering, totaling more than 54,000 hours to serve a variety of important causes and organizations.
This included activities such as virtual mentoring with underrepresented high school students, coaching young first-generation-to-college entrepreneurs, and providing strategic advising to non-profits through the Signature Pro Bono Program.
Through pro bono volunteering, we leverage the talent of our employees to increase the nonprofit sector’s capacities in our communities. In fact, since 2017, the Signature Pro Bono Program has provided critically needed capacity-building support in areas such as finance, technology and marketing to a number of non-profit organizations. BNY Mellon employees delivered nearly 3,000 hours of corporate and legal pro-bono services, valued at over $500,000 in 2020. Additionally, 100% of participants reported that the experience allowed them to develop professionally and that they would participate again.
Capitol Gains
What we’re doing in Washington
As seen in Morning Consult, we supported the full return to the government’s normal capital distribution oversight process. U.S. Global Systemically Important Banks are strong and resilient. In fact, in the second most recent stress test, the average post-stress capital ratio for our members was 9.7 percent—more than twice the minimum requirement of 4.5 percent.
In addition, we have been highlighting Forum members’ commitments to addressing racial and economic inequities through:
· Significant contributions to Community Development Financial Institutions (CDFIs) and Minority Depository Institutions (MDIs) with $9 billion in investments in CDFIs and $500 million into MDIs.
· Financing the creation or preservation of more than 158,000 affordable housing units in 2020.
· Improving representation in the workplace by increasing diversity among Forum member professional employees, managers, and executives from 2018 to 2020.
Learn more here.
Our Two Cents
Research from the Forum
The BankNotes Blog Spotlighted:
· Results of this year’s stress test released by the Federal Reserve, showing Forum members maintained more than double the regulatory minimum capital ratio. Even if stress losses were increased by 50 percent, Forum members would still maintain a capital ratio well in excess of the minimum.
· New research from economists at the Federal Reserve Board and the University of Chicago demonstrating that the role played by short-term wholesale funding in the banking system has changed significantly over the past decade.
· Large banks coexist alongside government in our economy and our modern economy can’t operate productively or efficiently without contributions from both.
Checking the Balance
Members in the news
Bank of America announced grant funding for 23 major art restoration projects in 13 countries and nine U.S. cities through the 2021 Bank of America Art Conservation Project. The firm is celebrating a decade of providing grant funding to nonprofit cultural institutions throughout the world to conserve historically or culturally significant works of art that are in danger of deterioration. The bank further showed its dedication to the arts by announcing a $1 million dollar anchor grant to Karamu House, the oldest African American producing theatre in the United States.
BNY Mellon earned a 100% on the Disability Equality Index for 2021 and was recognized by the American Association of People with Disabilities and Disability:IN as a Best Place to Work for its disability inclusion practices and policies. HEART, BNY Mellon’s Employee Resource Group for Diverse Abilities, helps support work that elevates awareness of disabilities and promotes a safe, respectful and welcoming environment.
Bloomberg reported Citi’s new mentorship program which allows senior executives to spend time working at black owned banks and help the minority depository institution (MDIs) shore up operations or establish new lines of business as part of the firm’s efforts to mentor and offer long-term revenue growth opportunities to the country’s dwindling MDIs. In addition to these recent efforts, Citi has provided $50 million to half a dozen such banks as part of a broader $1 billion commitment to closing the nation’s wealth gap.
Goldman Sachs announced the initial grants and investments for the One Million Black Women initiative, which has committed more than $10 billion to advance racial equity and economic opportunity by investing in Black women. Investment capital and philanthropic grants will provide organizations funds to advance causes including expanding broadband access, increasing access to financial coaching, providing affordable housing, decreasing maternal mortality rates, and more.
JPMorgan Chase announced new steps to improve housing affordability and stability as well as affordable homeownership opportunities for Black and Latinx households. As part of its $30 billion commitment to racial equity, a new five-year, $400 million philanthropic commitment will focus on housing stability, affordability and wealth creation. The firm also announced new efforts to advance federal housing policies that help mitigate bias in the home appraisal process such as promoting equal access to valuation data and improved appraisal process techniques. JPMorgan Chase is also providing mentors for trainees in the Appraiser Diversity Pipeline Initiative, an initiative led by the Appraisal Institute and Fannie Mae to attract new people in the field and increase diversity in the industry.
Morgan Stanley awarded $21.7 million in funding to Opportunity Finance Network to support human capital and professional development for the Community Development Financial Institution (CDFI) network, and to make pass-through grants to CDFIs in amounts of $100,000 – $250,000. These grants are designed to help CDFIs increase their lending capacity to the communities they serve. Mission-driven CDFI grant recipients will support economic recovery and growth, especially in Black, Latinx, Native, and rural communities.
State Street recently announced strategic engagements with leading industry and education-focused organizationsthat support the advancement of Black and Latinx professionals in financial services. Aligned with the firm’s 10 Actions to address racism and inequality in the workplace and communities and as part of its commitment to combating racial inequities within the global asset management industry, State Street will work with four organizations to provide career exploration; inclusion, diversity and equity best practices; employment; and professional development opportunities.
Wells Fargo provided a $25 million grant to Opportunity Finance Network’s (OFN) Finance Justice Fund to assist in tackling systemic barriers to capital in communities around the country. The Finance Justice Fund aims to address the racial wealth gap and persistent poverty by delivering financing through CDFIs to communities with less access to traditional financial services. The firm also awarded $1 million in grants to four organizations to provide support for the Asian American and Pacific Islander community and small businesses. The funding is in response to the COVID-19 pandemic and the recent increase in anti-Asian hate, discrimination and violence.