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Online investment platform Stackwell recently launched an app that’s dedicated to building wealth in the Black community.
Now available on the App Store, the official Stackwell app that’s named after the company provides solutions to several key issues that prevent people from buiding equity. With their new robo-investing app, the Black-owned company is offering education, support and accessibility in a platform that’s designed specifically for members of the Black community. Of the topics discussed, Stackwell helps users by providing help with portfolios, breaking down how to invest and encouraging users to stay on track with their investment plans.
In support of the app, Stackwell announced partnerships with multiple NBA and WNBA teams such as the Washington Wizards, the Minnesota Timberwolves and the Detroit Pistons amongst others. Over the course of three years, Stackwell and the teams will invest more than $250,000 in support of Black students, business owners and creators. The partnership will also generate new programs and events that’ll be available for more than seven million people.
“At its core, Stackwell’s platform is designed specifically to overcome the fear and mistrust of the financial system and institutions in this country, and empower individuals to see a space for themselves in investing,” said the company’s Vice President, Omosefe Aiyevbomwan, in an official statement. “We identified the social, emotional and cultural barriers to entry, and built the platform to address each one head-on.”
Currently, the racial wealth gap in the U.S. continues to remain particularly large. According to a 2022 report by the United Census Bureau, researchers analyzed the most recent data on wealth inequality in the U.S. In their research, they found that the average household wealth for Black householders was around $14,000. The number was significantly lower when compared to the average household wealth of $187, 300 for white householders in the U.S.
In their 2022 study, research group Brookings also recently reported that Black Americans are more likely to struggle with upward mobility when it comes to increasing wealth. According to the research group, the rate of increased wealth rises much slower for the community than that of white Americans.
Lower investment rates have been reported as contributing to the widening of the racial wealth gap. According to the Federal Reserve Board’s latest data, in 2019, only 34% of Black American households have invested before; the rate is much lower when compared to the 61% of white households that have done the same.
“The release of our app represents a significant milestone in the ongoing growth and development of our company,” said founder and CEO of Stackwell, Trevor Rozier-Byrd, in the press release. “We are now uniquely positioned to help more people in the Black community leverage the power of the stock market to grow long-term sustainable wealth, and ultimately capture a massive market opportunity by becoming the trusted provider of end-to-end financial products and services for millions of Black consumers.”