The banking industry bears a deep and unresolved legacy. For decades, redlining practices isolated entire neighborhoods from economic opportunity, undermining trust and limiting access for millions of Americans, particularly Black and Hispanic communities. While regulatory reforms and recent Department of Justice (DOJ) settlements have forced financial institutions to reckon with these wrongs, rebuilding trust requires far more than compliance alone. Truly winning back communities and future-proofing growth means making inclusive marketing central to your bank’s reputation and strategy.
Understanding Redlining and Its Lingering Impact
Redlining, first institutionalized in the 1930s, involved systematically denying loans and financial services based on geographic boundaries often drawn along racial lines. These “red-lined” areas were marked as risky, leading to chronic underinvestment. Though officially outlawed in the late 20th century, the scars remain. Generational wealth gaps, restricted access to credit, and deep-seated skepticism toward banks persist across marginalized communities.
This isn’t just historical trivia. The consequences are unfolding in real time. Over the past three years alone, the DOJ has levied over $75 million in settlements for continuing redlining practices, including high-profile actions against City National Bank and Park National Bank.
Why Inclusive Marketing Matters for Banks
Marketing to underserved communities is not just good ethics––it’s smart business and a powerful risk mitigation strategy. Inclusive marketing, when done authentically, helps banks:
- Rebuild trust by showing an understanding of past harms and demonstrating a commitment to serving all customers fairly
- Expand reach and grow market share by tapping into dynamic, growing demographic segments that are historically underserved but economically vibrant
- Mitigate regulatory and reputational risk by proactively aligning business strategies with expectations from regulators and the public
Rather than viewing inclusive marketing as a compliance check-box, forward-thinking banks are baking it into every element of their brand.
The Business Case for Inclusive Marketing
Recent census data underscores one compelling reality: the face of America, and therefore banking, is changing. Black, Hispanic, Asian, and multi-racial communities now make up more than 40% of the U.S. population. Millennial and Gen Z consumers, more likely to research a brand’s values before making decisions, are demanding inclusivity and authenticity.
Simply put, financial inclusion and growth go hand-in-hand. According to research by the FDIC, nearly 5.9 million U.S. households remain unbanked, disproportionately in minority communities. Serving these groups is not just about righting wrongs; it’s a direct path to business growth and increased market share.
Examples of Inclusive Marketing in Action
Forward-looking banks are making strides:
- U.S. Bank launched its “Access Commitment” initiative, expanding marketing and outreach programs in historically excluded markets and partnering with diverse community organizations.
- JP Morgan Chase invested $30 billion in initiatives to advance racial equity, with a focus on tailored marketing campaigns, accessible digital platforms, and community engagement.
- Park Community Credit Union is collaborating with minority non-profits, HBCUs, sponsoring financial literacy workshops in underserved West Louisville neighborhoods, and creating affordable credit products that meet specific community needs.
These actions aren’t just generating goodwill; they’re fostering loyal customer bases and opening new sources of revenue.
Actionable Steps for Banks to Implement Inclusive Marketing
Building an inclusive marketing strategy doesn’t require an overhaul overnight. Here’s how to get started:
1. Acknowledge History and Listen
Openly address your company’s own history regarding redlining or exclusionary practices. Host listening sessions with community leaders, seek feedback from historically underserved customers, and demonstrate a genuine commitment to change.
2. Commit to Representation
Ensure your marketing materials reflect the diversity of the communities you want to serve—not just in imagery, but in storytelling. Go beyond stock photos by sharing real customer stories and highlighting community partnerships.
3. Partner with Community Organizations
Work with local nonprofits, advocacy groups, and minority-owned media outlets. Such partnerships increase reach, show respect for community expertise, and foster authentic connections.
4. Educate and Empower
Offer financial literacy resources, sponsor workshops, and provide clear, accessible information. Help empower community members to make informed decisions about their financial future.
5. Measure and Share Progress
Set clear DEI (diversity, equity, and inclusion) marketing goals, regularly track your results, and share successes (and setbacks) transparently with stakeholders and communities.
Inclusive Marketing Is More Than Policy––It’s Progress
Banks have a unique opportunity to rebuild connections with communities that have been historically left behind. Inclusive marketing isn’t a mere risk management tool or reputational repair tactic; it’s the engine of modern banking growth and relevance.
By centering Financial Inclusion, rebuilding Banking Trust, and embedding Inclusive Marketing across operations, your institution doesn’t just adapt to the new marketplace. It sets the standard.
Now is the moment to move beyond redlining’s shadow—to lead with relevance, responsibility, and real opportunity for all.
