Although there is tremendous focus on financial equality these days, things are far from perfect. The racial wealth gap is one of the more significant pressing matters, and Stackwell wants to do something about it. Its new robo-investing app should help close this gap over the coming months and years.
Addressing The Racial Wealth Gap
The new robo-advisor solution by Stackwell is a significant development. The digital investment platform acknowledges one’s race can influence the financial products and services at their disposal. With its strong focus on the black community, Stackwell is in a prime position to enhance accessibility, education, and support. The robo-advisor is the first application released by Stackwell.
The digital investment platform was a member of the 2022 JPMorgan Financial Solutions Lab. Moreover, it raised $3.5 million in seed funding in August 2022 with the help of Michael Gordon, The Kraft Group, and Jeremy Sclar. Releasing the robo-advisor app is a crucial step forward, and its $1 monthly subscription fee is affordable. There is also a $10 investment minimum to ensure everyone can start their investing journey safely and without breaking the bank.
Stackwell VP of Product Omosefe Aiyevbomwan comments:
“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. We identified the social, emotional and cultural barriers to entry, and built the platform to address each one head-on. Our model portfolios facilitate the process of getting started, and address lack of guidance and proximity to the markets; our financial wellness and education content answer for the lack of information; and the low-cost entry and subscription fees help assuage heightened risk aversion and concerns people have about investing without a safety net.”
The current goal is for Stackwell to develop co-branded content to reach millions of people suffering from the racial wealth gap. Moreover, the team wants to open at least 3,5000 new Stackwell accounts, pre-seeded with initial funding for local program participants. Furthermore, there is a plan to contribute over $250,000 to local communities. It is a welcome development to address the growing racial wealth gap.