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Financial equity for all: an evaluation of the underrepresentation of people of color working as financial professionals

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Financial equity for all: an evaluation of the underrepresentation of people of color working as financial professionals

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Content Financial Equity for All: An Evaluation of The Underrepresentation of People of Color
Working as Financial Professionals
by
Steven B. Crane
Rossier School of Education
University of Southern California
A dissertation submitted to the faculty
in partial fulfillment of the requirements for the degree of
Doctor of Education
August 2024

© Copyright by Steven Crane 2024
All Rights Reserved

The Committee for Your Full Name certifies the approval of this Dissertation.
Maria Ott
Tony Cerella
Monique Datta, Committee Chair
Rossier School of Education
University of Southern California
2024

Abstract
This study uses critical race theory (CRT) to examine Black and Hispanic individuals’ unique
barriers to becoming financial professionals. This qualitative study focuses on one-on-one
interviews as the primary data collection method to evaluate the challenges Black and Hispanic
individuals face, their journeys, and obstacles they had to or are still overcoming to achieve their
goal of becoming a financial professional. This study identified that both Black and Hispanic
financial professionals share everyday struggles like difficulties finding role models within the
industry, facing imposter syndrome, financial barriers to success, and a shared lack of trust from
their own communities. The results showcased a need for better mentorship from the ground up,
recognizing racially diverse individuals as success stories and equipping them with the tools and
resources necessary to impact the lives of individuals in their communities. Recommendations to
rectify the identified issues include developing and deploying a comprehensive financial
education program across the country, focusing efforts on community outreach and engagement
at a local level, and implementing targeted recruitment and retention initiatives.
Keywords: Hispanic, financial industry, diversity, barriers, interviews

Dedication
To everyone who sacrifices their life for the betterment of others.

Acknowledgments
With profound gratitude, I extend my deepest thanks to all who have stood by me on this
journey. My life’s meaning is drawn from those who have courageously immersed themselves in
my circle of growth. To Dr. Ott, your guidance and inspiration in the classroom have been a
beacon. To Dr. Cerella, your friendship and mentorship have been pivotal in shaping my path.
Furthermore, to Dr. Datta—a special and heartfelt thank you for your steadfast support,
unwavering pursuit of excellence, and for never letting me falter in this vortex of life’s
challenges.

Table of Contents
Abstract .................................................................................................................................... iv
Dedication.................................................................................................................................. v
Acknowledgments..................................................................................................................... vi
List of Tables............................................................................................................................. x
List of Figures........................................................................................................................... xi
Introduction to Problem of Practice ................................................................................ 1
Context and Background of the Problem......................................................................... 1
Purpose of the Project and Research Questions............................................................... 4
Importance of Study ....................................................................................................... 5
Overview of Theoretical Framework and Methodology .................................................. 7
Review of the Literature ................................................................................................. 8
Secondary Education........................................................................................... 9
Barriers at Home ..................................................................................... 9
Industrialization of Schools ....................................................................11
Funding For Education ...........................................................................13
Post-Secondary Education..................................................................................15
College Selection....................................................................................15
Internship Opportunities.........................................................................17
Exclusion in Financial Services ..............................................................17
Financial Professionals in Action .......................................................................19
Lack of Role Models And Support..........................................................20
Economic Inequality...............................................................................21
First Year in Business.............................................................................22
Strategies to Address Diversity ..........................................................................23

Conclusion.........................................................................................................24
Conceptual Framework ......................................................................................24
Methodology .................................................................................................................27
Sample Participants............................................................................................27
Data Collection ..................................................................................................28
Data Analysis.....................................................................................................30
Positionality of Research and Ethical Considerations in Research ......................30
Findings ........................................................................................................................31
Findings for Research Question 1.......................................................................32
Barriers to Entry.....................................................................................33
Challenges in Professional Growth .........................................................35
Findings for Research Question 2.......................................................................37
Mindset and Personal Responsibility ......................................................37
Mentorship and Networking ...................................................................39
Community and Client Perceptions.........................................................40
Summary and Implications of Findings..............................................................42
Recommendations .........................................................................................................44
Recommendation #1 – Comprehensive Financial Education Programs...............44
Recommendation #2 – Community Outreach and Engagement ..........................46
Recommendation #3 – Targeted Recruitment and Retention Initiatives ..............49
Recommendation Summary ...............................................................................52
Limitations and Delimitations........................................................................................53
Recommendations for Future Research..........................................................................54
Conclusion ....................................................................................................................55
References ................................................................................................................................57

Appendix A...............................................................................................................................73

List of Tables
Table 1: Interview Protocols………………………………………………………………74

List of Figures
Figure 1: Conceptual Framework............................................................................................26

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Financial Equity for All: An Evaluation of The Underrepresentation of People of Color
Working as Financial Professionals
The underrepresentation of people of color working in influential positions of power
across many sectors and industries has long been a problem in the United States. With the
financial services sector being perhaps the most influential as it impacts every aspect of one’s
life, the lack of racial diversity within this field is staggering. This study aims to examine the
underrepresentation of Black and Hispanic individuals working as financial professionals in the
United States and how it negatively impacts communities of color and their financial well-being.
In the United States, less than 3% of all Certified Financial Planners (CFP) identify as
Hispanic or Latino. Additionally, less than 2% identify as Black or African American. In
contrast, 83% identify as White (Iacurci, 2022). This statistic is interesting because compared to
the United States workforce, roughly 18% of the workforce is Hispanic and Black people make
up 13% of the workforce (U.S. Bureau of Labor Statistics, 2021), showing there is an
opportunity for growth. Currently, as of November 2022, there are 93,786 CFPs in the United
States (CFP Board, 2022), meaning less than 3,000 Hispanic CFPs and 2,000 Black CFPs are
working in the field and helping their communities improve financial literacy.
A CFP Board Center for Financial Planning study revealed that the biggest reason for the
lack of diversity in the financial services industry is the lack of role models for people of color
(Center for Financial Planning, 2018). The lack of role models for aspiring Black and Hispanic
financial professionals creates a perpetual cycle of disinterest and ultimate self-sabotage in
communities of color where financial literacy needs are the highest. Furthermore, the study
showed that clients have an implicit bias when selecting financial professionals to work with,
citing that they would look for someone relatable. One participant stated, “They know where

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you’re coming from, and you know where they are coming from” (Center for Financial Planning,
2018, p. 37).
Financial professionals of color experience bias from employers, which hinders their
career success. Among the hiring managers in the financial services industry, more than 25%
believe that White prospects have a skills advantage in becoming a successful financial
professional over Black or Hispanic prospects (Center for Financial Planning, 2018).
Additionally, among the companies that seek to hire financial professionals, 42% believe that
people of color are not interested in pursuing a career instead of realizing other barriers exist
(Center for Financial Planning, 2018). These issues contribute to the lack of racial diversity
within the financial services industry and negatively impact their communities.
The underrepresentation of people of color in the workforce is nothing new to the United
States, and the issue continues to plague the country. While the underrepresentation of Black and
Hispanic financial professionals creates a vortex of issues for communities of color, the biggest
issue appears to be the hidden racial roadblocks these individuals face in becoming financial
professionals (Godbout, 2021). Companies such as UBS Financial Services, Wells Fargo,
Edward Jones, and Morgan Stanley have participated in the direct discrimination against
underrepresented groups, which continues to perpetuate the cycle of inequity (Class Action,
2022). The research showcased in this study seeks to address these underlining barriers to entry
for Black and Hispanic individuals looking to enter the financial services industry.
Context and Background of the Problem
For the purpose of this study, a financial professional is defined as anyone with a
financial license to market or sell financial products or services, such as life insurance agents,
financial advisors, fiduciary planners, or wealth strategists. The researcher intentionally decided

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upon this definition as these professions are instrumental in increasing financial literacy, creating
generational wealth, and advising clients on good financial decisions.
The lack of racial diversity within the financial services industry is not a recent problem
and is traced back to segregation. During segregation in the 19th century, industrialization was
expanding, and the United States needed cheap labor to meet the demand. As a result, many
Hispanic and Black workers are exploited across the country and forced into low-paying contract
jobs (Blakemore, 2018). This issue compounded every time the United States experienced
financial turmoil, such as during the Great Depression; the blame was put on marginalized
groups as they were “stealing jobs” from hardworking Americans (Blakemore, 2018).
Such actions throughout generations in the United States led many citizens to accept the
status quo and form mental models about how the world works, thus leading to systemic racism
developing in the country and organizations. As history progressed, people of color faced blatant
discrimination when applying to career fields until 1964, when the Civil Rights Act became law
and prevented employers from discriminating based on race, color, religion, sex, or national
origin (National Archives, 2022). While blatant discrimination was no longer legal in the United
States, racism was still alive as forms of discrimination shifted to more insidious and pervasive
ways organizations utilized to keep the status quo. Bias, microaggressions, and microinvalidation
took the place of traditional racism and discrimination, but the impact was just as debilitating to
communities of color (Williams, 2015).
These actions are still found today in the workforce as many of the same people who
started these behaviors are still part of the workforce, and their influence reaches many facets of
organizations and their processes. One example of this is found in the housing market as the Fair
Housing Act (1968) aimed to eliminate housing issues for people of color and end redlining.

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However, White people in power found a loophole because people of color were in jobs that paid
next to nothing, whereas White people were in positions that paid well. As a result, subdivisions
began popping up because White people could afford the housing prices, which left people of
color inside public housing (Gross, 2017). Gary O’Bannon expressed as a panelist at the
University of Missouri-Kansas City (2020) that minority unemployment is twice that of White
people, which makes building wealth exponentially harder. Additionally, he added that home
ownership is a cornerstone of generational wealth, and given the inequities following the Fair
Housing Act, there was little wealth to be handed down to people of color.
Historical inequities compounded over generations have led people of color to distrust
financial institutions and the people who work for them. This distrust, systemic racism, and
financial barriers to entry have all impacted the racial diversity within financial services, as only
7% of director-level roles in financial services are Black employees (Florant et al., 2020). These
disparities have led to the most comprehensive wealth gap in the history of the United States and
are a leading cause of racial inequality and tensions across the country.
Purpose of the Project and Research Questions
This study seeks to uncover the barriers to entry that Black and Hispanic individuals face
on their path to becoming financial professionals in the United States. The study focuses on oneto-one interviews with current Black and Hispanic financial professionals to highlight their
experiences in becoming and working as financial professionals.
The research questions posed emphasize amplifying the experiences of these individuals
in hopes of uncovering systemic roadblocks that prevent many Black and Hispanic individuals
from joining the financial services industry.
1. What barriers do Black and Hispanic individuals face in becoming financial

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professionals?
2. What challenges currently exist that hinder Black and Hispanic financial
professionals from performing at their highest potential once in the industry?
Importance of the Study
People of color in the United States have less affluence than White people, providing
them fewer opportunities to create and pass down generational wealth and power. Black and
Hispanic households earn roughly half as much as White households and own less than 20% of
the net wealth in the United States (Aladangady & Forde, 2021). The median household wealth
of a White family in the United States is about $189,100 compared to the median household
Hispanic family of $36,050 and the median Black household of $24,100 (Federal Reserve,
2019). Charles Schwab’s (2019) study revealed that 62% of people who do not have a financial
professional assisting them live paycheck to paycheck. On the contrary, two out of three people
working with a financial professional have an emergency fund. Furthermore, the majority of
Americans who do not work with a financial planner feel somewhat or very anxious about their
finances compared to 46% of those who work with a financial planner (Northwestern Mutual,
2022).
White households have more than four times in retirement savings than people of color.
The average retirement account for households of color is around $30,000 compared to $120,000
for White households (Rhee, 2013). Additionally, 62% of White employees work for a company
that provides a retirement plan, whereas 38% of Hispanic employees work for a company that
offers a retirement plan (Rhee, 2013). TIAA Institute’s report (2021) showed that Hispanic
individuals have lower levels of financial literacy than Whites, with Hispanics answering 41% of
financial questions correctly vs. 55% of Whites.

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A study published in the Journal of Personal Finance exposed that Black and Hispanic
individuals have a lower trust for financial professionals than non-Black or non-Hispanic
individuals (Martin et al., 2014). An individual that looks similar to oneself is perceived to be
more trustworthy (University of Royal Holloway London, 2013). Mayra Rodriguez Valladares,
who owns a financial firm in New York City, mentioned that people are looking for those they
can relate to and share their finances with without fear of discrimination, which is why having
people of color as financial professionals are influential (Lam-Balfour, 2022).
Being able to relate to a financial professional who has undergone similar experiences of
systemic racism, bias, or prejudice can create a stronger connection and help form the
professional relationship more quickly. Black households are statistically more likely to use a
financial planner; however, the usage rates for these individuals are lower than other
demographics (White & Heckman, 2016). Moreover, 27% of Hispanic households seek a
financial planner compared to 20% of the general population (Life Happens, 2022). These stats
demonstrate that people of color are yearning for financial assistance and guidance; however,
they are not finding someone they can connect with who shares similar experiences. Hispanics
are also the most likely demographic to feel motivated when considering financial planning, with
78% reporting that planning for the future is essential (Lincoln Financial Group, 2021).
Furthermore, the importance of this study is underpinned by the implications of national
security when viewed from a financial literacy perspective. The lack of financial literacy within
the United States cannot be understated, with the country falling in line with that of Botswana in
national financial literacy standings (Klapper et al., 2015). As of August of 2024, the U.S.
national debt stands at $35.3T, and while this number can become quite complex to comprehend,
what is rather easier ascertained is the $218.8T in unfunded liabilities. Social Security, Medicare,

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Medicaid, Government Pensions, and Veteran Benefits are the main components that make up
the $218.8T, with a rough estimate of each citizen owing $650K in taxes (U.S. National Debt
Clock, 2024). Financial literacy is something not just for the rich and wealthy but rather
important to every citizen, especially those who are most vulnerable. The importance of this
study stretches far beyond racial diversity and pushes the boundaries of national security as it is
not always the largest army that wins wars but rather the best-trained army that succeeds. If the
U.S. seeks to remain competitive in future years, financial literacy for people of all backgrounds
is essential.
Overview of Theoretical Framework and Methodology
This research study utilizes critical race theory (CRT) to examine the unique challenges
that Black and Hispanics endure in becoming financial professionals. CRT is based around six
central tenets, which include a) race is socially constructed; b) racism in the United States is
average; c) people of color serve the interests of the dominant White majority; d) stereotypes of
minorities shift over time; e) intersectionality of identities overlap; and f) the assumption that the
experience of one minority must be the same for everyone. Therefore, they have the authority to
speak for everyone (Delgado & Stefancic, 2006).
Racism in the United States has a long history dating back to slavery and even more
recently with segregation and the Civil Rights Act (1964). However, traditional or old-fashioned
forms of racism are eliminated in the workforce; covert forms still exist that may be more
harmful to individuals (Williams, 2015). This study seeks to empower financial professionals of
color by enabling them to share their experiences and discuss the hidden barriers they must
overcome that their White counterparts do not experience. By utilizing a qualitative research
approach, the goal is to elicit details surrounding the journey of people of color as they work

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toward becoming financial professionals in the United States. Qualitative research studies focus
on understanding the individuals’ or stakeholders’ interpretations and meanings of their
experiences and any constructs that exist in their worlds (Merriam & Tisdell, 2016).
Review of the Literature
In 2015, the U.S. Census Bureau and U.S. Bureau of Labor Statistics’ Current Population
Survey revealed that 13.2% of the population is Black or African American, and 17.1% are
Hispanic. When examining the number of financial advisers, the data showed 8.1% were Black
or African American, and Hispanics were 7.1% (White & Heckman, 2016). Of those that are
actually Certified Financial Planners, the numbers drop to 1.9% and 2.9%, respectively
(Donachie, 2023). Although there is a myriad of contributing factors that ultimately lead to these
statistics, this literature review will focus primarily on the educational and socioeconomic
barriers that exist on the path to becoming a financial professional in the United States. The
existing body of literature fails to make a connection between various factors, such as household
barriers, education funding, college major selection, internship opportunities, and their direct
contributions to the racial disparities observed in the financial services sector.
This study aims to address and rectify this gap, specifically in this area. While there are
mentions of broader reaching issues, such as low socioeconomic status communities are slower
to develop academic skills than their higher socioeconomic status counterparts, there is a gap in
directly applying it to financial professionals (Morgan et al., 2009). The literature review begins
by looking at the impact secondary education has on students of color and the ripple effect it
carries with them into post-secondary education. Next, it examines how college major selection
is driven and how internships have larger-reaching consequences, both for those who get one and
for those who are unable to. Lastly, this literature review presents the three most significant

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barriers financial professionals experience if they finally land a position identified by the CFP
Board, which are the lack of role models and proper support, economic inequalities within their
spheres of influence, and the financial backing to build a book of business (Center for Financial
Planning, 2018).
Secondary Education
Secondary education for many students during the early 1900s was far and few between;
however, for students of color, it was virtually non-existent. Less than 10% of students graduated
from high school around 1910, with most other students being forced into helping the family
work in agriculture or factories (Goldin & Katz, 1997). In the last century, there has been an
increase in the graduation rate among students from diverse racial backgrounds. By 2019, the
disparity between the average national graduation rate and that of Black students had narrowed
to 2.2% (Day, 2020). In contrast to the year 1965, it is observed that approximately 25% of
African American students successfully completed their high school education, whereas the
corresponding figure for the overall national average stood at approximately 50% (Day, 2020).
While disparities in statistics have continued to dissolve with time, the systemic barriers students
of color must overcome remain in effect.
Barriers at Home
Students of color are often forced to overcome unique challenges in high school than
their White counterparts, causing barriers to quality education. Spatig-Amerikaner (2012)
detailed that schools that are comprised of 90% or more students of color spend, on average,
$733 less per student when compared to schools with 90% or more White students. In a 2016
report from the U.S. Department of Education, it was noted that while Black and Latino students
make up 42% of the student body in schools that have programs for gifted and talented education

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(GATE), they only account for 28% of the enrollees in these GATE programs. Additionally,
Black students are 54% less likely to be recommended for gifted-education programs compared
to White students (Nicholson-Crotty et al., 2016). All of these challenges are outside the control
of students and continue to stack barriers against students of color from competing with their
White counterparts for academic equality.
Academic achievement in students of color is statistically far less than in White students
across the United States. According to a 2019 report published by the Nation’s Report Card,
students of color, on average, score more than 20 points behind White students. Furthermore,
roughly 32% of White students scored above proficient on their math exams compared to 7% of
Black students. In terms of ACT performance, 61% of Black students who graduated in 2015 met
none of the ACT college preparation benchmarks, which is twice as high as all other students
(ACT, 2016). Students of color not only struggle inside the classroom but also in their home life
as well.
Having a single-parent household negatively impacts students both physically from a lack
of resources and money but also mentally from neglect or guidance (American Psychological
Association, 2019). Since 1970, the proportion of children living in single-mother households
has virtually doubled for all races. In White households, the number has increased from 7.8% to
16.7%; in Black households, 29.5% to 45.6%; and in Hispanic households, 19.6% to 24.5%
(U.S. Department of Justice, 2022). Students of color are disproportionately affected by singlemother households, which leads to them dropping out of school or not finishing college. ZiolGuest et al. (2015, Figure 1) noted that there exists a persistent disparity in educational
attainment between adolescents aged 14 to 16 who reside in single-parent households and those
who reside in two-parent households. This disparity tends to increase as time progresses. The

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struggles encountered by students of color stretch beyond the classroom, which further hinders
their ability to focus on academic performance, ultimately setting them up for failure in higher
education.
Industrialization of Schools
The industrialization of schools in the United States perpetuated classism and continued
to divide citizens through racism and segregation. Around the turn of the century, the United
States underwent the Industrial Revolution, which would forever change the landscape of public
education, due mainly in part to the wealthiest and most powerful people at the time, such as J.P.
Morgan and John D. Rockefeller. Philanthropic donations made by individuals like Rockefeller
focused on pushing low-income families into vocational work under the guise that it would
provide them with a means of lifelong work (Fleming & Saslaw, 1992). In 1917, the United
States adopted the Smith-Hughes Act, which provided federal funding to states, allowing them to
promote vocational education in the trades instead of higher education (Steffes, 2020). In an
article by Hanford (2014), Jim Stone, who is the director of the National Research Center for
Career and Technical Education, commented that vocational education was historically guided
by the principle of preparing individuals for their anticipated futures. He noted that students from
lower-income backgrounds were often directed towards roles as laborers, while others were
steered towards universities to join the ranks of the intellectual elite. Despite the well-intentioned
efforts of the government and other stakeholders to strengthen the economy and uplift the
general public, it is evident that these measures would have enduring adverse consequences for
the nation, particularly for individuals born into disadvantaged socioeconomic backgrounds.
Organizing individuals based on their perceived value really became the focus of the
United States in the early 1900s because of factory demand, World War I, and the Great

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Depression. In the early 1900s, the National Education Association, schools, and the government
began openly adopting and mandating standardized testing, with the focus being on screening
individuals for aptitude and probable futures (National Education Association, 2020). Although
the United States has had an Office of Education technically since 1867, it was limited in its
power until 1979, when Congress passed the Department of Education Organization Act, which
focused on providing underrepresented groups access to equal education and funding lowincome schools accordingly (U.S. Department of Education, 2010). The education system pushed
hard during the early 1900s to make schooling a legal requirement for all children, but it was not
until the 1930s that compulsory schooling laws were enforced across the United States (Katz,
1979). Additionally, it was not until 1938 that the Fair Labor Standards Act was enacted to
regulate the age and hours a child can work (U.S. Department of Labor, n.d.). Prior to these child
labor laws being enacted, children from rural or lower-income areas would work to help support
the family, leading to only upper-class students being able to focus on their education (Library of
Congress, n.d.). The modernization of the education system in the United States was a step in the
right direction; however, it is essential to note that it was not until 1954 that Brown v. Board of
Education was ruled to be discriminatory, and prior to that, students of color were treated and
educated as second class citizens (Augustin, 2010). Education has historically served as a means
for individuals in the United States to attain financial prosperity. However, students belonging to
marginalized racial and ethnic groups have encountered challenges in accessing high-quality
education. Furthermore, the education they have received has often failed to equip them with the
necessary knowledge and skills to effectively accumulate wealth.
Coupling half a century of poor educational standards, financial literacy is still a
relatively new concept, especially for students who did not attend higher educational institutions.

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The topic of personal finance or financial literacy is roughly 100 years old, with the earliest
research in this field coming from Hazel Kyrk in 1923 with her Dissertation at the University of
Chicago titled “A Theory of Consumption” (Kyrk, 1923). The focus of the early 1900s was not
on the betterment of individuals and their lives but rather on growing the country and increasing
the status of the United States on a global scale. Mandatory educational standards and testing
became the focus of politicians and communities alike, which encouraged competition between
schools for federal funding and forced alignment to governmental standards (Huddleston &
Rockwell, 2015). Receiving funding for schooling became less of a right for students and more
of a competition that favored those who already had a head start and adequate resources.
Funding for Education
During the 1930s, a period marked by the implementation of compulsory education, the
emergence of federal home loan programs coincided with the adoption of redlining practices.
Redlining refers to the discriminatory practice employed by lenders to enforce racial segregation
within cities by restricting access to loans for individuals belonging to marginalized racial
groups. Given that educational institutions receive funding through property taxes in different
regions, it has resulted in students from marginalized racial backgrounds being exposed to
substandard educational settings characterized by limited resources and a scarcity of qualified
educators to facilitate their learning (Shanker Institute, 2022). It was not until 1968, when the
Fair Housing Act was passed, that it became illegal to consider race as a determining factor (U.S.
Department of Housing and Urban Development, n.d.). With little to no access to credit, poor
education, and discriminatory practices at play, families of color were forced into owneroccupied housing in marginalized communities. Merrefield (2019) detailed that during the 1930s,
rental prices rose 40% in areas where White families moved away from and Black families

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congregated. Many of the White families who moved continued to rent their properties out to
Black families but increased the pricing significantly. Fast forward to 2019, 73% of White
families own a home compared to 42% of Black families. Additionally, the average home value
is $230,000 compared to $150,000 respectively (Moss et al., 2020).
Using property taxes to help fund schooling leads to lower-income communities being
negatively impacted by no fault of their own, which leads to lifelong cycles of poverty. Reports
from the U.S. Department of Treasury (2022) demonstrate that average White households have
more than $25,000 in housing equity than households of color. Given that 58% of Black students
do not own a home and, therefore, do not typically belong to a well-funded school, 81% are
subjected to high-poverty schools (Garcia, 2017). According to Darling-Hammond (2001),
funding systems exhibit a tendency to distribute fewer resources to impoverished urban districts
compared to their suburban counterparts. Moreover, research consistently demonstrates that
within these districts, educational institutions catering to a significant number of low-income and
minority students are allocated fewer instructional resources in comparison to their counterparts
within the same district. The allocation of resources tied to a haphazard metric has failed students
of color as it overlooks the complex systemic nuances of racism in the United States and its
history.
Standardized testing has become the government’s way of holding schools accountable
for increasing the competitiveness of the United States’ education system on a global scale. In
2001, the No Child Left Behind (NCLB) Act was enacted, which tied federal aid to standardized
testing scores (Ballotpedia, n.d.). From 2001 to 2015, the No Child Left Behind policy faced
extreme pushback to the point that it was replaced by a more flexible and forgiving policy called
the Every Student Succeeds Act (ESSA) (U.S. Department of Education, n.d.). While the

15
intention of ESSA was good, it failed to address that the United States’ education system was
established based on racism. An article titled Every Student Succeeds (Except for Black Males)
Act, states, "ESSA was designed and intended to ensure that Black male students could change
their social conditions only through an education aligned to a White standard that would not
threaten Whites’ intellectual, social, and economic interests” (Allen et al., 2018).
Post-Secondary Education
Not all college education is created equal. Despite having gone to college, students may
still find themselves in a quagmire based on the college they attended, the major they chose, and
the internships they landed. Students of color continue to feel the ripple effects of systemic
racism during their post-secondary education. In 1940, less than 1% of Black people had a fouryear degree. In 2019, that number was 26% compared to the national average for all races of
36% (Day, 2020). According to data from the Integrated Post-secondary Education Data System
(IPEDS), between 2012 and 2013, roughly 11% of Black students chose to pursue a degree in
science, technology, engineering, or math (STEM) (Hinrichs, 2015). Furthermore, in 2018, Black
students made up no more than 9% of all STEM degrees awarded at all levels of academia, with
virtually no change since 2010 (Funk, 2022). Higher education has the potential to equip students
with the necessary skills and knowledge for success in their chosen career fields, as long as
students from all socioeconomic backgrounds are given equal opportunities to thrive in their
preferred areas of study.
College Selection
The path to becoming a college student and selecting a major starts in high school, where
students compete to secure a place in a reputable university. High school students must
distinguish themselves through advanced placement courses, high grades, strong application

16
essays, extracurricular involvement, recommendation letters, and good scores on tests like the
ACT or SAT to excel in college admissions (National Society of High School Scholars, 2017).
The intention of scoring students on a plethora of items provides admission boards the
opportunity to look past the classroom and develop a more holistic view of the college applicant.
Additionally, research from the National Center for Education Statistics (1995) noted that
extracurricular activities reinforce lessons that are learned in the classroom and allow students to
demonstrate them, thus creating a well-rounded student. While looking for all-around balanced
students is a staple of college admissions in the 21st century, it was not always this
straightforward.
During the early 1900s, access to higher education was predominantly limited to
individuals from privileged socioeconomic backgrounds who possessed the necessary knowledge
and resources to navigate the admissions process. Prior to the 1940s, there was very little
published information concerning colleges, high education, and statistics on job prospects, which
made the choice of attending college based heavily on hearsay and societal norms within a
community (Kinzie et al., 2004). Additionally, according to The Journal of Blacks in Higher
Education (n.d.), if a person of color were to be accepted into a program like Harvard’s medical
school in 1850, colleges were pressured to rescind offers in favor of White students. The racial
disparity in higher education persisted until the year 1964, when the Civil Rights Act was
implemented. In order to address the inequities and discrimination faced by Black students,
Historically Black Colleges and Universities (HBCUs) emerged as institutions that offered
educational opportunities to approximately 80% of Black students (Hudson, 2022). Although
these universities were monumental in helping students of color access education and
opportunities, there were still inequities that existed through this initiative.

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Internship Opportunities
The underrepresentation of Black and Hispanic individuals in the financial services sector
is mostly caused by the scarcity and lack of accessibility of internships for students of color.
Many of these students are compelled to seek paid jobs while studying, thus limiting their
opportunities. Perna and Odel (2020) highlighted that 9% of White students worked at least 35
hours per week compared to Black and Hispanic students at 16% and 13%, respectively.
Furthermore, research by Anderson (2020) indicated that paid internships are less accessible to
students of color due to economic constraints, exacerbating the disparity in professional
experience accumulation. This situation creates a cycle where students of color are less likely to
gain the early professional exposure crucial for career advancement in finance. Additionally, the
choice of college major, often influenced by immediate financial concerns, further restricts the
pathway of Black and Hispanic students into financial internships and subsequent professional
roles. Gillis (2021) found that racial stereotypes and a lack of guidance lead many students of
color to select majors with perceived immediate job prospects, often outside STEM majors. This
choice is compounded by the observation from Hinrichs (2015), showing that Asian students are
more likely to choose a major in accounting, economics, or finance than Black or Hispanic
students. Consequently, these students are less likely to pursue internships in finance, a critical
stepping stone to professional roles in the industry. This trend underscores the need for targeted
interventions in education and career guidance to bridge the gap in representation within the
financial services sector.
Exclusion in Financial Services
Black and Hispanic students undertaking finance internships frequently experience
isolation and a dearth of mentorship, hindering their professional growth and sense of inclusion

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within the financial services industry. Nicole and DeBoer (2020) emphasized in their
comprehensive literature analysis the insufficient presence of racially minoritized students in
STEM graduate programs, especially those about finance. They highlight the individual, societal,
and organizational elements that contribute to this lack of representation, including feelings of
seclusion and a deficiency of supportive networks. In his work, Johnsen (2021) examined the
difficulties encountered in nurturing the potential of advanced kids from various backgrounds,
explicitly addressing the underrepresentation of Black and Hispanic pupils in gifted education
programs. This need for more representation also applies to higher education and professional
internships, where these students frequently encounter a scarcity of mentors who share their
characteristics, intensifying their sense of isolation. These studies emphasize the difficulties
encountered by Black and Hispanic students during finance internships, where they feel isolated
and lack mentors or role models who share their backgrounds. The absence of adequate
representation and guidance impacts their internship experiences and has wider ramifications for
their future paths in the financial services industry.
Black and Hispanic students face challenges transitioning from internship to full-time
employment in the financial services sector. These challenges result in lower employment rates
for these students than their White counterparts. Various factors contribute to this disparity.
Armstrong et al. (2022) discussed a training program to support underrepresented minorities in
pursuing health professions, drawing parallels to the financial sector. The authors observed that
students need help transitioning into professional roles despite receiving training and mentorship.
These difficulties are frequently attributed to systemic barriers and a lack of ongoing support
after completing their internships. Bracey et al. (2016) examined the enduring presence of Black
and Hispanic undergraduate engineering students in predominantly White institutions,

19
emphasizing their obstacles. The challenges students face, such as a lack of institutional support
and mentorship, are likely similar in the financial services sector. These challenges can affect
their ability to secure full-time positions after completing an internship. These studies
demonstrate the systemic and institutional obstacles that hinder the advancement of Black and
Hispanic students in the financial services industry, specifically when transitioning from
internships to permanent positions (Armstrong et al., 2022). It is essential to comprehend and
overcome these obstacles to promote diversity and inclusion in the financial services industry.
These actions will result in a more diverse range of perspectives and experiences, ultimately
benefiting the sector.
Financial Professionals in Action
The transition from post-secondary education to working as a financial professional is
difficult for Black and Hispanic graduates. These difficulties reflect concerns of systemic
inequality and a lack of assistance in the financial services business. Dimitriu et al. (2019)
conducted a study that shed light on students’ difficulties when moving from high school to
university and into the workforce. The study focused on bridging the educational gap in STEM
fields, including finance. Particularly for underrepresented groups like Black and Hispanic
students, who frequently confront additional challenges in professional settings, the researchers
emphasized the necessity of continual assistance and initiatives to facilitate this transition.
Furthermore, Dimitriu et al. highlighted the importance of those programs. These research
findings shed light on the myriad of obstacles that Black and Hispanic graduates must overcome
to shift to the financial services industry. These obstacles range from educational gaps to
systemic hurdles in professional situations (Dimitriu et al., 2019). It is imperative to tackle these
challenges to promote equitable access and achievement for Black and Hispanic individuals in

20
the financial services sector. Taking this action will foster greater diversity and inclusivity
throughout the sector.
Lack of Role Models and Support
Black and Hispanic individuals employed in the financial services industry face
challenges due to the lack of accessible role models and support networks. The limited
availability of resources contributes to a sense of isolation and hinders their capacity to progress
in their careers. St-Onge et al. (2021) studied the Canadian financial services industry,
highlighting the importance of supportive workplace cultures and management practices. The
research emphasizes the influence of senior management’s attitudes towards diverse groups on
organizational culture, which subsequently affects the sense of belonging and support for
minority professionals. Hodge’s (n.d.) research on Black college males in the United States
examined the impact of predominantly White academic environments on these individuals. This
study provides valuable insights into Black individuals’ broader challenges in predominantly
White settings. This study emphasized the importance of mentorship and support in enhancing
the well-being and success of individuals of African descent. These findings directly relate to the
experiences of Black and Hispanic professionals in the financial services industry. This research
highlights the importance of mentorship and supportive environments in facilitating professional
growth and achievement for Black and Hispanic individuals in the financial services industry
(Hodge, n.d.). Efforts need to be made to ensure the success and retention of Black and Hispanic
employees in the financial services industry. The steps involve addressing the lack of role models
and cultivating workplace cultures that are inclusive and supportive.

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Economic Inequality
Economic disparities have a notable impact on the financial advisers belonging to the
Black and Hispanic communities. The financial services industry faces challenges due to the
limited wealth within communities of color, adversely affecting their customer base (Davidson,
2018). Reid (2013) investigated the effects of financial services industry activities on the racial
wealth gap and its implications for economic mobility. The study highlights the difficulties
encountered by Black and Hispanic financial advisors. Insufficient financial resources in these
communities impede investment opportunities and restrict client engagement, thereby limiting
their potential for success. Velasquez et al. (2023) investigated the economic inequality in the
physician pipeline. This study underscores the broader problem of inequality in professional
fields. Studies like Reid (2013) suggest that economic inequalities have a substantial impact on
the professional opportunities available to financial advisors who are part of marginalized racial
communities. These professionals frequently face similar difficulties in building a solid customer
base in socioeconomically challenged communities (Joint Economic Committee, n.d.). While
most studies primarily focus on the medical field, the consequences are equally relevant for
financial advisors who are people of color. Research reveals the economic challenges
experienced by Black and Hispanic financial advisors, primarily due to the existing disparities in
wealth in the communities they primarily work with (Davidson, 2018). This situation can
potentially restrict their customer base, hurting their professional effectiveness. Addressing
economic disparities is essential for fostering a just and prosperous environment for Black and
Hispanic financial service professionals.

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First Year in Business
The first year in the financial advisory industry is marked by challenges such as client
acquisition and navigating financial instability. Ninety percent of Black students feel there are
unique challenges faced by Black advisors that deter them from growing a career in the industry
(RBC Wealth Management, 2022). Newly established financial advisors face a major challenge
in building their client base. According to Taylor (n.d.), the majority of financial professionals,
specifically over 90%, fail to continue their careers beyond the 3rd year. Furthermore, by the 5th
year, only a small percentage, specifically 15%, of these professionals will remain in the
industry. As stated by Salary.com (n.d.) and DeMarco (2023), the industry’s median entry-level
income as of October 2023 is $38,728, which is lower than the national median salary of
$56,420. This low income poses challenges for individuals without sufficient financial resources
to establish a business from the ground up. Newly appointed financial advisors encounter
challenges in client acquisition and financial stability during their initial stages of professional
development (Demarco, 2023; Taylor, n.d). Black and Hispanic professionals may face a more
significant impact from these challenges as a result of systemic injustices and feeling excluded
(McKinsey, 2020). There is a wage disparity between White financial professionals and their
Black and Hispanic counterparts. Finance Advisor Demographics and Statistics (2021) indicate
that White advisors have an average income of $67,386, Hispanic advisors earn approximately
$64,745, and Black advisors earn $57,257. Recognizing and confronting the initial obstacles
Black and Hispanic financial advisors encounter is imperative to promote inclusivity and provide
them with the necessary support. This understanding and knowledge will ultimately increase
diversity and equity in the financial services industry.

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Strategies To Address Diversity
The financial services industry has been aware of the issue of racial diversity for decades,
and despite many efforts made by organizations to address it, minimal advancements have been
achieved. Northwestern Mutual is an instance where effort was exerted, but the outcomes are not
correlated. The company has made contributions totaling $26 million to enhance the
development of underprivileged communities nationwide (Northwestern Mutual, 2021).
Furthermore, over 1,000 leaders have successfully undergone diversity, equity, and inclusion
(DEI) training and immersion experiences, emphasizing the significance of actively listening to
and learning from underrepresented voices (CFP Board, 2020). However, the organization has
not published an official diversity breakdown, unlike PHP Agency (2021), which upholds its
dedication to supporting underrepresented communities and highlights a representation of
53.23% females, 42.14% Hispanic/Latino individuals, and 32.77% Black/African American
individuals.
Although it is praiseworthy to invest in training, education, and philanthropic endeavors,
the impact of these efforts is ultimately more significant than the intentions behind them. Merrill
Lynch, like PHP Agency, is an exemplary case of a company that has fervently prioritized
promoting diversity among its employees. The organization experienced a 49% growth in Black
and Hispanic advisors between 2015 and 2020. According to the CFP Board’s 2020 report,
currently, 23% of Merrill Lynch advisers are individuals belonging to racial or ethnic minority
groups, while 21% of them are women. This growth exemplifies the measures implemented by
the organization to demonstrate its dedication to promoting diversity in the area. Merrill Lynch
responded by instituting advisory councils and organizing events focused on formulating
sustainable plans to foster the advancement and achievement of its diverse people (CFP Board,

24
2020). The industry is facing challenges in achieving ethnic diversity, as efforts and financial
commitments do not always result in tangible advancements. For the financial sector to make
significant progress in terms of diversity, initiatives must be deliberate and clear, prioritizing
demonstrable results rather than just the actions taken.
Conclusion
In summary, Black and Hispanic individuals encounter systemic racism, socioeconomic
obstacles, historical impediments, and particular problems in pursuing careers as financial
professionals. Attaining a financial profession in the United States is a formidable endeavor, but
the unique obstacles faced by Black and Hispanic individuals make it even more arduous. The
probability of success for a financial professional is already low; however, when obstacles such
as racism, poverty, inadequate education, and environmental stressors are added, the likelihood
becomes exceptionally dismal. While there have been advancements in certain domains, there
remains a substantial path to be traversed in order to guarantee fair and impartial results for
Black and Hispanic individuals to prosper in the realm of financial services. To tackle these
problems, a comprehensive strategy is needed that encompasses educational restructuring,
industry transformation, and legislative intervention, all rooted in a dedication to inclusivity and
social justice.
Conceptual Framework
Critical race theory (CRT) emerged in the 1970s as a result of the efforts of legal scholars
in response to the Civil Rights Movement (George, 2021). This theory provides the fundamental
basis for the conceptual framework of this study primarily by incorporating one of the five
fundamental principles of CRT, which is the acknowledgment of the real-life experiences that
people of color have had in relation to institutionalized racism. This study sought to amplify the

25
perspectives of Black and Hispanic financial professionals and shed light on the distinct
challenges they encountered in their journey to becoming and working as financial professionals.
The path to becoming a financial professional is arduous and protracted, particularly if
individuals have not been appropriately equipped during their formative years. Various aspects of
life contribute to an individual’s performance as an advisor, including educational prerequisites,
financial knowledge, and a conducive environment. The conceptual framework of this study
draws inspiration from CRT and posits that racism has not been completely eliminated but rather
remains deeply ingrained in all aspects of society. This study specifically focuses on the
experiences of Black and Hispanic individuals and illustrates the challenging path these
individuals have to cross in order to become financial experts. Figure 1 represents the conceptual
framework, serving as a visual representation of the roadmap.

26
Figure 1
Conceptual Framework

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Methodology
This section begins with an examination of the study’s objectives and the research
questions steering the study. Additionally, it details the sample size, participants’ demographics,
and data collection methods used. Lastly, it examines the data analysis methods used and the
researcher’s positionality and ethical considerations.
Purpose of the Study and Research Questions
The study aimed to amplify Black and Hispanic financial professionals’ perspectives and
encounters to gain a comprehensive understanding of the distinct obstacles and difficulties they
encountered when entering the field and achieving full professional accreditation. The study
identified gaps and possibilities for organizations and the financial services industry to address
the lack of diversity within the business. The study proposed two research inquiries:
1. What barriers do Black and Hispanic individuals face in becoming financial
professionals?
2. What challenges currently exist that hinder Black and Hispanic financial
professionals from performing at their highest potential once in the industry?
Sample Participants
This study employed a field-based qualitative approach, utilizing informative interviews
as the means of data gathering. The individuals being sampled were Black and Hispanic financial
professionals from different organizations nationwide. Through professional organizations and
networking, I have amassed roughly 1,500 financial professionals who met the criteria needed
for this study. To recruit these individuals, I personally emailed them and invited them to
participate in this study. Each participant volunteered independently and within the established
parameters, thus avoiding coercion or incentives. The study conducted interviews with a total of

28
ten participants, consisting of five Black financial professionals and five Hispanic financial
professionals. The survey did not include financial professionals who self-identified as Asian,
White, American Indian, or Pacific Islander. Furthermore, this study exclusively encompassed
financial professionals who possessed complete credentials and had accumulated industry
experience beyond 6 months. In the context of this study, a fully credentialed financial
professional is defined as an individual who possesses a life insurance license or securities
license or holds certifications as a financial fiduciary or financial planner.
In order to identify the ten participants for this study, I extended invitations to individuals
who fit the aforementioned requirements. These individuals partook in a 1-hour interview
session, during which they were prompted to discuss their experiences in pursuing a career in
finance. In order to safeguard the confidentiality of the identities of organizations, individuals,
and associations, pseudonyms were employed to promote transparency and establish a secure
environment for participants.
Data Collection
Participants were invited to engage in a 1-hour Zoom interview. During this interview,
participants were posed a series of 15 questions aimed at gaining a more profound
comprehension of the obstacles and difficulties they encounter as Black and Hispanic financial
professionals in the United States. Additionally, to keep prepared and organized, I asked
participants additional probing questions so they could dive beyond superficial answers (Jacob &
Furgerson, 2012). Participants were explicitly told before their interview that they would be
videotaped, and everyone would be given a chance to opt out accordingly, should they decline to
be recorded. For every participant who accepted to be recorded, their interview was videotaped
and transcribed using Otter to extract the responses provided by participants completely.

29
Recording interviews is highly recommended by Merriam and Tisdall (2016) as it also allows for
nonverbal behavior to be observed. In addition, I took handwritten notes during each interview
for potential follow-up questions, if necessary. To maintain the authenticity of the Zoom
recording alongside the Otter transcript, I meticulously reviewed each interview to optimize the
precision of the two software programs.
Preserving the confidentiality and security of each participant is of the utmost
importance. To safeguard the privacy of all individuals interviewed, pseudonyms were employed
instead of real firm names, participant names, and any other indicated affiliations during the
interview. In addition, each participant underwent a comprehensive debriefing process. This
debriefing process ensured that if, at any stage of the interview or study, they decided to
withdraw for any reason, all data related to them and their interview would be securely
eliminated and formally excluded from the study.
Electronic data was safeguarded with password protection and treated with detailed
attention to ensure the integrity of the obtained data and the confidentiality and anonymity of
participants. The Zoom recordings were saved onto my desktop, while the Otter transcriptions
were downloaded from the application’s website right after each interview and removed. In
addition, all handwritten notes were destroyed by shredding after each interview. My computer
includes a single file that stores the data obtained from all of these channels. The files were
organized into smaller files based on participant pseudonyms. Upon the conclusion of the data
analysis, all data obtained from this study was securely eradicated to safeguard each participant’s
continuous privacy and confidentiality.

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Data Analysis
In order to combine the data obtained from each participant, I reviewed each Zoom
recording, compared the transcripts from Otter, and merged the gathered material into a Word
document. The Word document was examined to identify themes, recurring experiences, shared
elements, and similarities across participants. As Braun and Clark (2006) articulated, thematic
analysis constitutes a systematic approach for identifying and interpreting patterns embedded
within a data set. This methodology was selected for the purpose of triangulating the data
amalgamated through the interviews. The objective was to emphasize the main obstacles and
difficulties that Black and Hispanic financial professionals encountered as they strived to
succeed in the sector. The results were given in the analysis section of this study, while the
recommendations section included specific proposals for addressing the impediments highlighted
by participants.
Positionality of Researcher and Ethical Considerations in Research
Villaverde (2008) characterizes positionality as being shaped by the convergence of
power and social identities, including gender, race, class, and more. As a Certified Financial
Fiduciary® with more than a decade of professional experience, I knew my positionality as a
first-generation Hispanic immigrant and the first college graduate in my family. I acknowledged
how it influenced my research. Due to my strong personal connection to this research and the
likelihood that participants would have thoughts and experiences similar to mine when they
became financial professionals, I was aware of my actions to safeguard the integrity of this study.
I remained vigilant in protecting my favoritism towards the financial services industry, its
employees, the power structures inside it, and even individuals with different perspectives from
mine during this process.

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Following Merriam and Tisdall’s (2016) recommendation, I conducted interviews with
sensitivity and emotional intelligence to preserve data integrity and avoid bias. Throughout the
data collection process, I eliminated any traces of financial services from my background, attired
myself in comfortable clothing to avoid the imposing impression of a formal suit and tie, and,
above all, relinquished any preconceived notions and the acronyms commonly employed by
financial professionals. Finally, I provided my name and identified myself as a student at the
University of Southern California, refraining from disclosing my additional Ph.D., past research
endeavors, financial certifications, or other shared experiences.
The University of Southern California Instructional Review Board (IRB) oversaw the
ethical implementation of this study and safeguarded the well-being of all study participants.
Contact with participants was strictly prohibited unless explicit written agreement and approval
from the USC IRB was obtained. The collected data was securely protected and not disclosed to
any company, manager, or association. In addition, the researcher conducting this study did not
earn any immediate financing or financial gain from this research. However, the suggestions and
proposals made in this study may lead to future compensation if they are utilized and
implemented.
Findings
This qualitative study aimed to understand better why there is a lack of racial diversity
within the financial services industry. Specifically, the study focused on developing an
understanding of some barriers Black and Hispanic individuals have either encountered and/or
overcome to be in the position they are today as financial professionals. Throughout the Zoom
recorded interviews, participants were asked a series of questions that the USC IRB previously

32
approved. Each interview lasted approximately an hour, and participants were asked probing
questions that enabled open-ended conversations and follow-up questions as appropriate.
The study consisted of 10 participants, five of whom identified as Black or AfricanAmerican and the other five as Hispanic or Latino. Of the 10 participants, two identified as
female, one identified as Hispanic or Latino, and the other participant as Black or AfricanAmerican. The study lasted over 3 months, from March 2024 to May 2024. During each
interview, no participants had any questions, and no one asked to be removed from the study.
Utilizing the critical race theory framework provided an exceptional foundation for the
research. Approaching the conversations through this lens and connecting the data points to the
conceptual framework clearly illustrated why so few Black and Hispanic individuals exist in
financial services. The findings from this study came as a surprise and did not align with
previously held thoughts or beliefs. This study aimed to answer two research questions:
1. What barriers do Black and Hispanic individuals face in becoming financial
professionals?
2. What challenges currently exist that hinder Black and Hispanic financial professionals
from performing at their highest potential once in the industry?
The findings were broadly unanimous, and based on the qualitative research findings, each
research question yielded the same answers.
Findings for Research Question 1
When participants were asked about the various barriers they see or experience, the
answers centered around two common themes. This finding held true regardless of the race of
those interviewed with these questions. The following themes included: a) barriers to entry and
b) challenges in professional growth and performance.

33
Barriers to Entry
Each group pointed out three main points surrounding the idea that breaking into
financial services is difficult. Participants quickly noted that the lack of representation and role
models played a big part in their decision to join financial services. Many mentioned role models
they might have in entertainment or sports but struggled to think of the last time they saw
someone as a financial professional who looked and sounded like them. A couple of participants
discussed how sad and demoralizing it is to be the only person of color in the room. Johnny
expressed in his search for employment, “When I was looking for a job, people did not want to
hire me because I didn’t have the right experience. The fact that I knew Spanish, I thought would
give me an edge, but it wasn’t viewed as an advantage.” Another participant, Xandy, talked
about wanting to relate with someone who understood her challenges, stating,
I would have loved to have a mentor who looked like me, who could understand where I
was coming from as a Hispanic. It’s not just about having a mentor; it’s about having
someone who can relate to your experiences and challenges because they’ve been
through something similar.
The absence of this cultural connection leaves Xandy feeling disconnected and unsupported,
which highlights the critical nature of not just mentorship in financial services but also culturally
relevant guidance for younger professionals as they try to navigate life.
Almost every participant also mentioned the cultural and societal norms and expectations
placed on them. Larry noted that their family told them “we don’t do that stuff, that’s a White
man game” as they were joining financial services. Several discussed how society’s only
aspiration for people of color is to make it big in Hollywood or professional sports, not to start a
business and enter financial services. Danny stated, “Blacks and Hispanics are underrepresented

34
economically, that’s really the challenge, not the pigment of their skin. They come from
backgrounds where wealth management isn’t even a thought.” The concept of societal norms and
social conditioning was elaborated further by Barry, who highlighted,
When you look at commercials during golf tournaments or tennis matches, you see ads
for high-end items. But when you watch football or NASCAR, the ads are for beer,
Doritos, and fast food. It’s a different paradigm. Growing up, we never saw financial
advisors or retirement planning commercials. That word ‘retirement portfolio’ never even
came out of my mouth growing up. It’s conditioning.
Danny and Barry’s perspectives underscore how targeted messaging and social conditioning
shape societal behaviors and expectations. Additionally, they both highlight the economic
challenges and disparities that underrepresented groups experience and how they are not just
from individual choices but a deeply rooted societal pattern that perpetuates inequalities.
Lastly, the misconceptions about financial products and services repel people away from
the industry. Most participants gave an example of life insurance and how those who sell it are
typically slimy, and the only “real use” of life insurance is the death benefit, which is
categorically false. However, given the stereotypes surrounding the industry and various
products, most people have already decided before doing their homework. Lenny detailed the
stigma around financial services, stating, “There’s a stigma around people in financial services,
like we’re all sharks or just out to make money. That stigma makes it harder for people like me to
gain trust, especially when I’m trying to serve my own community.” The participants explained
that this ignorance and arrogance from communities of color leads to a lack of acceptance of the
industry and all those who pursue it. Furthermore, the stereotype that finance and wealth
management are overly complex is often reinforced by industry professionals who intentionally

35
complicate the field. Kenny explained, “I guess with the concepts or the notions that what we do
is rocket science...” He goes on to showcase how financial professionals make the industry out to
be much more sophisticated than it really is, noting, “...a lot of times people in this business just
in general throw out all kinds of crazy acronyms and sophisticated words and jargon because
they’re really trying to make it seem like it’s more than what it is.” The perception of financial
services being overly complex and something only intellectuals can deal with perpetuates this
cycle of classism and White exceptionalism that Kenny boldly summarizes by saying, “...because
of that, I think it discourages a lot of people from even taking a look at it.” Thus, further
continuing the cycle of exclusivity and exaggerating the lack of trust and diversity within the
industry ultimately restricts opportunities for those who might otherwise thrive in financial
services.
Challenges in Professional Growth
Most participants identified three key areas that made it difficult for them to actually join
the financial services industry once they passed their initial exams and licensure. One area that
held many participants back was overcoming the imposter syndrome and the lack of self-belief.
Ivy shared her vulnerability, explaining that she has to constantly remind herself, “I can do
whatever I put my mind to. It doesn’t matter how old I am, the color of my skin, or what I’ve
been told before.” She further expressed that overcoming her belief that she is “not enough or
don’t belong” is something she struggles with daily. Many participants echoed this sentiment that
perhaps it was one of the hardest things for them to battle, and some admitted to still feeling this
way. They mentioned a feeling of needing to represent their communities, and this pressure from
external sources ultimately created many internal barriers.

36
Additionally, systemic disparities and stereotypes hindered their performance when first
getting started. A few of the participants noted that simple tasks like engaging in a conversation
with prospects were daunting because of the prejudice they would receive from all races. Some
stated that the feeling of not belonging is only further reinforced when no one wants to speak
with them. Andy described the feeling of being alone and fighting an uphill battle when first
getting started, declaring, “...it was like half the time I was still learning the basics while trying to
teach someone else.” The pressure made him second-guess his abilities, and this is coupled with
the ridicule he faces from his own family, who don’t understand why he would pursue a career in
financial services. Andy went on to share, “...it’s tough when no one, even your own community,
believes you belong in this field.” The lack of support from potential clients and his own
community deepened his feeling of being crazy for choosing this industry, and he continues to
place undue pressure on himself, making the challenge to succeed all the more difficult.
Furthermore, the financial barriers and lack of resources participants explained were
plentiful. Every participant noted the need to purchase materials, supplies, and extra learning
aids, attend professional development conferences, and continuously invest in themselves and
their business as impacting their success. Billy called it a “Steep learning curve if you’re coming
from a W-2 job into the entrepreneurship world.” He later goes on to detail all of the expenses
financial professionals quickly find themselves having to pay in order to be successful, asserting,
I would say the financial barriers were significant because there were so few resources
available when I first started. Sure, there are programs like the SBA or veterans’
entrepreneurship classes, but the funding and tools you really need to get off the ground
are hard to come by. You’re stepping into a field where you have to spend money on
basic things like licenses, software, and marketing, but the support isn’t always there.

37
Several of the participants noted that they were spending money they did not have to catch up
with their peers whose parents had passed down certain resources or materials to them. Kenny
illustrated this disparity by sharing, “Other communities could take a six-month leave of absence
and have their parents cover their rent while studying for certifications like the CPA.” However,
for many marginalized communities, this kind of support is unimaginable. He states, “We’re
funding ourselves and often others back home. The financial burden makes it nearly impossible
to think about taking time off to catch up.” The lack of inherited wealth or safety nets not only
limits opportunities for growth but creates a vicious cycle of inequities that leave people
struggling to play on a level playing field. Despite equal ambition, their lack of equal resources
leaves them in a continuous game of catching up to others.
Findings for Research Question 2
Roughly a third of the way through each of the interviews, participants began shifting
their attention and commentary toward the more significant issue, being that once Black and
Hispanic individuals actually make it, the real problems begin. The three major themes surfaced:
a) mindset and personal responsibility, b) mentorship and networking, and c) community and
client perceptions.
Mindset and Personal Responsibility
Larry had established and been successful in their practice; they reported internal
struggles with their mindset and taking responsibility for their success, explaining, “Society
allows us as Black men to be victims... Once you get out of the victim mentality, things change.
It’s not about what the world is doing to you, it’s about what you’re doing to change your
situation.” Some participants wrestled with their thoughts and tried to explain their internal
struggle of feeling guilty about their success, like a diversity pick, and less than others despite

38
overcoming every obstacle. Kenny shared his internal conflict, expressing that it was difficult to
distinguish between his mindset telling him he was not welcomed vs. blatant signs of
discrimination or unwelcomed gestures, as he never saw himself as a victim. He reflected on
those lingering experiences, sharing it is hard not to wonder, “...was I chosen because of who I
am and not because of what I’ve actually achieved?” This ongoing monologue Kenny wrestles
with leaves him questioning his worth and battling this feeling of being “less than” or
“illegitimate” despite overcoming countless obstacles. Several participants echo Kenny’s doubt,
which overshadows the incredible work and accomplishments of financial professionals of color.
The participants realized they were successful and had earned it but felt uneasy about it.
Participants also explained that addressing their mindset and shifting from a victim to a victor
attitude allowed them to press forward when times were difficult for them. Lenny highlighted the
importance of having a good outlook on life and the impact it had on his career, stating, “One of
the biggest things that I’ve learned is that your mindset is everything. So even when I come
across people now, that’s what I talk about. Your mindset really determines whether you succeed
or fail.” Additionally, Billy shared a similar sentiment, pointing out that, “The biggest obstacle is
in our mind.” He emphasized that many people spend time looking for solutions or validation
from external sources instead of “...looking in the mirror. It’s like, what does that person need to
change personally to be successful?” This mental shift empowered participants to overcome
barriers and push their way to a feeling of success or accomplishment, showcasing that true
transformation begins from within and then is validated through external sources.
Most participants expressed a similar thought process around overcoming the mental
models shaped by their environment or belief systems. Andy illustrated this victim vs. victor
mentality struggle, explaining how easy it is to give up when everyone is against you: “...no one,

39
even your own community, believes you belong in this field.” However, he shared that once he
shifted his focus to what he could control instead of worrying about everything else in life, he
began to notice a change in his life and in his practice. Andy noted, “...I got out of that mindset
and started focusing on what I can control, everything changed. It’s easy to blame external
factors, but you really have to dig deep and push forward no matter what.” Many participants
echoed the power of reframing their situation and expressed the benefits of having a positive
mindset as the foundation for success. The internal transformation that several participants,
including Andy, made allowed them to overcome barriers quicker and was instrumental in
tackling other challenges, including finding mentorship and building a network.
Mentorship and Networking
Almost every person mentioned the lack of mentorship and the opportunity to network
with other professionals who resembled them. Participants underscored the critical role
mentorship has had in their careers and how much further they would have been had they
received more mentorship and guidance from someone who had walked their path. Johnny spoke
about the importance of having a network of mentors, stating, “...in financial planning, it’s
important that we represent that community as well. I don’t think we have enough
representation.” Johnny goes on to explain the lack of leaders ready and willing to stand up and
the harm it causes, saying, “...part of it is because I don’t feel that there’s enough help out there,
enough mentorship, enough leaders to show and answer those tough questions...” The absence of
mentors who can relate and share their challenges with the next generation leaves many new
financial professionals feeling isolated. Addressing this mentorship gap could help pave the way
for more diverse talent and create a better chance of success for those financial professionals of
color entering the industry.

40
Additionally, many participants highlighted how having a community of financial
professionals who identify as either Black or Hispanic would have accelerated their careers
tremendously, as various participants identified. Several participants expressed a feeling of
duality with regard to their demographic. As Danny shared, being Hispanic has allowed him to
tap into a Latino network, which he viewed as a huge advantage. On the contrary, he noted that
“...that network is still limited compared to others in the industry,” making it difficult to fully
capitalize on the opportunity. Participants pointed out that the lack of networking opportunities
within their own communities negatively impacts the ability to cross-collaborate and build one
another up in the profession.
Lenny candidly shared, “It kind of sucks to say this, but I have never—like none of my
family members have ever said that they want to sit down and learn from me even though they
know what I do.” This attitude Lenny highlights shows the challenges encountered when trying
to build connections, even within his own family, and he goes on to explain, “The mindset is just
not there. They don’t see me as someone to network with or trust in this industry.” These
accounts emphasize the critical value of having a network that provides support during
challenging times and empowers and revitalizes financial professionals of color while
championing their work and being recognized for their contributions to the field.
Community and Client Perceptions
The lack of trust from Black and Hispanic communities as it pertains to financial service
professionals is something every single participant touched on. While the reasons are plentiful
and often justified, the lack of trust from clients and communities of color is something that
directly impacts the profession, many participants explained. Billy detailed during his interview,

41
There’s a lack of trust when it comes to financial services in our communities because
people have either been burned before or just don’t believe that someone really has their
best interest in mind. It takes a lot of effort to bridge that gap and prove that you’re
genuinely there to help.
A couple of participants emphasized the need to simplify and customize complex financial
concepts in ways that apply and impact communities of color. During Kenny’s interview, he gave
an example of how asinine some financial professionals speak to their clients, saying, “...you
need to break things down in a way that makes sense culturally, otherwise it’s like trying to sell
an electric car to someone who’s comfortable with their horse and buggy.” He highlighted the
need to explain things that connect not only in a logical way but that are culturally relevant and
relatable. These insights ultimately reveal that the key to building trust lies in how financial
services are presented and the importance of genuine cultural appreciation and relevance. Until
the industry can effectively bridge this gap, the disconnect between financial professionals and
underrepresented communities will continue, driven partly by the lack of a shared language and
cultural understanding.
The vast majority of participants agreed that community perceptions are slowly changing
as the financial services industry begins openly accepting more racially diverse candidates, but it
is a slow transition. When prodded on the idea of progress being made, Xandy explained,
I think we’re very behind from where we need to be. There should be a lot more
programs, maybe for scholarships, more mentorship, more open places or conferences
where there’s diversity representation. We’re progressing, but we’re not even near where
we need to be.

42
Participants reported that building trust through continuous networking, workshops, and
educational seminars is slowly restoring the confidence of communities of color to work with
financial professionals. Barry specifically called out the power of having racial diversity from a
practical standpoint by declaring, “When communities see someone who looks like them, it helps
break down barriers and builds trust. But if the perception remains that financial services are
only for certain people, then it keeps others out of the conversation.” However, despite the
progress made, many participants attribute their struggle working as financial professionals to
their lack of trust and rapport with their communities. Danny captured this sentiment when he
expressed, “...the challenge comes in when communities that have historically been overlooked
are cast out of opportunities just based on the fact that they don’t identify with certain people.”
Danny summarizes what the financial services industry is missing. Until the industry recognizes
and embraces a genuine commitment to inclusivity, these barriers listed will continue to hold
back financial professionals of color and the very communities they yearn to serve. Actual
progress demands that the financial services industry does more than open a door. However, it
instead actively creates a space where all aspiring financial professionals are welcomed and
valued for more than the color of their skin or the communities they unlock.
Summary and Implications of Findings
The findings from the study have a few practical and theoretical implications that should
be considered, particularly when viewed through the lens of CRT. The study provides a
comprehensive understanding of the barriers and challenges faced by Black and Hispanic
financial professionals. Perhaps the most interesting part of this study is the lack of racially
specific issues identified. By addressing the implications listed below, the financial services

43
industry can work toward creating a more inclusive and equitable future for all professionals who
look to enter the industry.
Systemic inequality underpins this entire study and clearly depicts the inequality felt
within the financial services industry. CRT asserts that racism is embedded within the fabric of
society, and this study supports this narrative, providing a glimpse into the obstacles Black and
Hispanic individuals must overcome in this industry. Additionally, the study emphasizes the
importance of considering the intersectionality of race, economic status, and culture. The
experiences felt by each participant do not exist in a vacuum, nor should they be approached in
such a binary fashion. It is because of multiple factors at work that people experience life the
way in which they do.
The role of mentorship and representation is also underpinned by CRT’s emphasis on
producing counter-narratives and having minority voices in White dominated fields such as
financial services. This study showcases the need for more racially diverse representation at all
levels of financial services and illustrates the importance of having mentorship for the next
generation of financial professionals. Adding appropriate Black and Hispanic mentors who can
help challenge stereotypes and provide specific guidance for other financial professionals of
color provides a more inclusive and supportive environment.
Lastly, the study revealed that one way for Black and Hispanic individuals to succeed is
to focus on providing their communities the support and resources they need to build better
relationships and foster communities of collaboration and trust. Developing educational
programs centered around financial literacy and instilling early financial education can help
bridge the gap for communities of color and promote Black and Hispanic financial professionals
as the people of change. These efforts also allow financial professionals to network and begin

44
actively working to restore trust in their community while changing the narrative of what a
financial professional can look like.
Recommendations
Given the nature of the financial services landscape, its regulatory bodies, and everevolving technological advances, the recommendations presented have been predicated on this
understanding of the industry. There are three significant recommendations based on the
testimony of the participants, a thorough review of the literature, and knowledge of what has and
has not worked from other case studies. Each recommendation provides the foundation for
addressing the lack of racial diversity within the financial services industry, specifically for
Black and Hispanic financial professionals. It is important to note that while these
recommendations are comprehensive and address the country’s current affairs, it is paramount to
understand that these problems will continue to evolve in their own right. It is crucial to
continuously monitor and evolve accordingly to prevent the next national security crisis from
occurring.
Recommendation #1 – Comprehensive Financial Education Programs
Financial literacy and education are nothing revolutionary, and some universities have
already begun leading the charge, like the University of Kentucky rolling out their financial
wellness program in late 2023 (Blanton & Piercy, 2024). While initiatives in college are
phenomenal, financial literacy is much like reading; the earlier a child is exposed, the better. This
is why, as of June 2024, a total of 26 states, with California being the newest, have joined the
movement and pushed their legislatures to provide personal financial education as a graduation
requirement for high school (Next Gen Personal Finance, 2024). However, although the action to

45
push through legislation is good, when one peels back the fine print behind these programs, it is
clear that the education provided is merely checking the box.
Only six states have a standalone class in personal finance; in those states, it is only one
semester or roughly five months of education. Until financial literacy is viewed with as much
importance as reading, speech, or mathematics, it is asinine to think the United States can solve
this epidemic; as noted by Lach and Nzorbuara (2023), the United States will continue to lose
more than $436B yearly. One semester cannot teach someone how to read, yet American citizens
do it daily. On the contrary, one semester apparently is more than enough to teach someone how
to handle money, something everyone does daily.
Countries like Australia, Canada, Denmark, Finland, Germany, Israel, the Netherlands,
Norway, Sweden, and the United Kingdom all rank at the top of financial literacy rates
worldwide, whereas the United States ranks closer to Botswana, with 52% of its adults being
financially literate (Klapper et al., 2015). The Canadian government has an entire section
dedicated to money and finances on its official website. It offers a whole host of various
resources, educational information, and even a section for financial literacy programs.
Individuals can request that workshop material be shipped to them for free and access everything
digitally from the website (Government of Canada, n.d.). Making financial literacy easy,
accessible, and fun to utilize is essential regardless of age or demographic. The Chartered
Professional Accountants of Canada (n.d.) has an entire financial literacy program that is broken
down into more niche categories, such as women, entrepreneurs, seniors, elementary, high
school, post-secondary, and many more. This tailored approach to financial literacy keeps the
process exciting, engaging, and, more importantly, applicable to those receiving the information.

46
By duplicating and refining what is working in other countries, the United States does not
need to recreate the wheel of financial literacy. These programs are effective, and the world
rankings prove it, yet the United States has fallen behind the rest of the world. While countless
organizations and companies are doing their best to reach American citizens across the country,
they are limited to their own influence and reach. The lack of representation within the financial
services industry is precisely why having more Black and Hispanic individuals enter into
financial services can not only get more culturally diverse communities but can also help develop
programs that are actually applicable to their communities. Meeting people where they are is
essential in the educational journey, and by placing the client at the center of course creation,
meaningful programs that go beyond checking the box can be created.
Having organizations that reflect the communities they serve is no different than having a
government that reflects the people of that community. If the government is nothing but elderly
White men, it will typically serve elderly White men the best. The same goes for financial
institutions and local firms. Having a racially diverse workforce goes beyond having someone
who looks a certain way; it is about knowing the client’s needs at a deep and emotional
connection, where an institution is better equipped to serve those needs. By having more Black
and Hispanic individuals help create a curriculum that is engaging and applicable to their needs
and those of their communities, better connections and trust can be established within the
community. Furthermore, those communities’ financial needs and challenges can be addressed
more directly and have a more profound impact.
Recommendation #2 – Community Outreach and Engagement
Community outreach and engagement are tied directly to building trust and raising
awareness about this industry. This recommendation, just like the others, is multifaceted as, yes,

47
it does help the community increase their financial literacy and serves the greater good; however,
it also 1) connects the Black and Hispanic financial professionals with their community and
builds stronger ties, and 2) it positions them as the go-to expert in the community, thus raising
their chances for long-term success in the field. By emphasizing community outreach and
engagement, many positive elements come from this one practice. It truly is the glue that enables
the other two recommendations to flourish, and without it, nothing else matters.
Companies like Bank of America provide investments, curate partnerships, and deliver
grants to local organizations to amplify their mission and impact, totaling more than $360M
(Bank of America, n.d.). These investments are helpful and needed for local communities of
color; however, throwing money at a problem and hoping it gets resolved is the same thinking
that has caused countless other problems. Take the War on Drugs as a perfect example and the
estimated $1T that has been spent since 1971 trying to fix the issue by throwing funding to
various resources that only fix surface-level problems (Pearl, 2018). The United States and many
organizations have a track record of funneling money to programs without impacting the root
issue.
The recommendation proposed here is to complement the funding in a direct and tactical
approach to solving the issue of hurting communities, not merely masking the underlying
problem. Instead of just giving the community a fish, this solution teaches the community to fish
and then provides a pond full of fish for them to utilize. Organizations like Operation HOPE
(n.d.) provide financial literacy education and specialized training programs to individuals
around the country while working with leaders and government to eliminate systemic issues.
These nonprofit organizations are also incredibly useful for supporting communities of color and

48
empowering people from all walks of life. Still, one category is left unturned – local financial
professionals and firms.
Creating an environment where communities of color can congregate, discuss financial
issues, and share resources in a structured and professionally led manner where the person
facilitating the discussion is a Black or Hispanic financial professional in an ideal situation.
Companies like People Helping People organize weekly events in their community where
everyone is welcome to attend, ask questions, learn more about the company’s mission, and
receive free financial education. This grassroots movement is what led to them being acquired by
Integrity Marketing Group in 2022 as part of the company’s largest acquisition (Integrity
Marketing Group, 2022). Since 2009, People Helping People has not only solidified itself as the
most culturally diverse financial services organization in the industry but has also helped educate
and serve over 450,000 families (PHP Agency, n.d.).
The company realized several things, which is ultimately the recommendation being
presented. First, meet clients where they are, go to them in the field, and openly serve families
for free. Everything the organization does is at no cost to the family because they realize this is a
significant blockade preventing middle—and lower-class Americans from reaching financial
education. Secondly, they realized that by hosting meetings twice a week, once on Tuesday and
once on Saturday, they could reach a larger population by accommodating the schedules of those
they served. This approach enabled them to connect and build trust quickly with the community
and hold a safe space for people to dream about their financial futures. Thirdly, they recognized
that the conventional financial curriculum was lackluster and did not represent the needs and
wants of communities of color, so they created their own financial education with the help of

49
those in the community. By including the community in the process, they were able to generate
buy-in and leverage the feeling of ownership to influence more families on a deeper level.
Lastly, and most importantly, they recognized that having a 60-year-old White male
present financial concepts to 20 and 30-year-old Black and Hispanic individuals was not an ideal
situation. For this reason, they began recruiting, training, and incentivizing local community
members to join the firm and learn the industry while providing a much-needed service for their
community. In doing so, not only would the financial professionals of color be viewed as the
authority in the community, but it would also allow them to create lasting ties with the local
families and service them authentically and meaningfully. People Helping People cracked the
code on hosting community events in underserved communities and created a model where
people truly help people get ahead in society and take control of their finances.
Recommendation #3 – Targeted Recruitment and Retention Initiatives
Recruitment for the sake of diversity numbers is not a purposeful or even a practical form
of long-term recruitment. The recommended type of recruitment is a natural form of recruitment
that occurs organically when a person is introduced to a cause and solution that makes sense for
them and enables them to pursue this passion. Merril Lynch increased their people of color
representation by 49% in 2020, going from 15.5% to 23% representation (CFP Board, 2020).
When questioned about what contributed to this growth, one of their highlights was the creation
of several advisory councils focused on Black and Hispanic professionals to ensure the right
strategy and programs are in place to sustain the growth and success of diverse talent (CFP
Board, 2020).
It is unclear as to the intricacies behind their competitive strategy; however, it can be
assumed they are listening directly to the voices of Black and Hispanic professionals to aid them

50
in recruitment and retention strategies. Similar to this study, one of the key points noted by the
participants was a need to meet people where they are and empower them to make decisions that
will best benefit them and their families. The need for role models and mentors in the financial
services industry is long overdue and is something many companies are struggling to
accomplish. Still, they are skipping the foundational level of attracting the right candidates.
Going to a college campus for a recruitment event is great. Still, as this study previously
discussed, many college students of color find it challenging to take on internships when they
struggle to pay for school and help their families (Anderson, 2020). As a result, college recruiters
often struggle to attract diverse, qualified talent, leaving them empty-handed and frustrated. On
the other hand, innovative companies like People Helping People have perfected the art of
reaching the multi-cultured community by delivering financial literacy and opportunities to
become a financial professional. Somewhere between the monetary backing, financial influence,
and widespread reach of Merrill Lynch, and between the innovative strategy, entrepreneurial
dream, and speed of duplication of People Helping People is an opportunity to perfect the
recruitment and retention strategy for Black and Hispanic financial professionals.
The strategies and recommendations for attracting, recruiting, and retaining Black and
Hispanic financial professionals can be summarized in the following. First, the need for Black
and Hispanic financial professionals to do the recruitment, be role models, and showcase what it
means to work in the financial industry is a must. Having a White individual in a diverse
community looking to help people of color is a red flag and can be seen as virtue signaling
(Plante, 2020). Secondly, the financial professionals doing the work on the ground need an
opportunity to make this at least a part-time career, and not just goodwill. There is nothing wrong
with providing financial education for free, and certainly nothing wrong with taking care of the

51
community; however, it is important to make these efforts sustainable for the community and
those leading the change. Those who work in nonprofits and give tirelessly without taking care
of themselves often experience burnout from low pay and overwork (Carmichael et al., 2023).
Thirdly, people within communities of color need to see the possibility of success and
realize that financial services are not just a “White game,” as participants noted. By having
weekly events hosted by Black and Hispanic financial professionals inside the communities they
represent and showcasing the ease of duplication, individuals can visualize themselves doing the
same thing and impacting their community. Additionally, the recognition, compensation, and
rewards are commensurate with the impact they are having, meaning the more impact, the more
benefits. This approach transforms the idea of being a financial professional from a fun idea to a
practical reality for community members.
Lastly, retention is arguably one of the most difficult pieces of any organization to tackle.
However, mentorship, continuous growth, impact on the community, and connection to others
are all things participants voice as reasons they continue to stay in the industry. If these can be
tied to the recruitment process, then it is a self-perpetuating engine of success. Thankfully, the
financial services industry has already established the roadmap by modeling network marketing.
People Helping People has perfected this model, where the success and growth of a financial
professional are tied to their ability to duplicate, grow, and have a bigger impact on the
community. Almost every financial institution operates on a model of split revenue and
overrides, where the agency owner receives a portion of all business generated from the firm.
Ultimately solidifying the need for continuous attraction marketing, recruitment, and retention.
Suppose a new financial professional of color hosts a weekly event in their community and does
a good job. In that case, they will naturally inspire others who will want to duplicate the process,

52
thus making the financial professional more successful and having a vested interest in seeing
those they bring on become successful, as that is the only way they get compensated.
Recommendation Summary
This section includes a simple-to-follow roadmap that links everything together to
summarize the synchronistic nature of these three recommendations. As a reminder, the
recommendation showcased is not all-encompassing, and in follow-on sections, more research
will need to be conducted to validate certain aspects and refine them accordingly. This
recommendation should serve as a guiding principle for organizations and institutions to build as
they see fit.
1) Comprehensive Financial Education Program
2) Community Outreach and Engagement
3) Targeted Recruitment and Retention Initiatives
Develop a comprehensive financial education program that can be taught in schools or in
after-school programs that are a) created by Black or Hispanic financial professionals, b)
applicable in age and demographic, and c) easily and freely accessible to everyone in various
platforms and modalities. Take that comprehensive financial education program and continue to
build on it to meet the needs of the local communities of color, providing resources, assistance,
and education that empower families. With that curriculum in hand, begin hosting weekly
community outreach events and engage the local communities. Enable Black and Hispanic
individuals with the resources, knowledge, and skills needed to facilitate these meetings and be a
shining beacon of hope and strength to the community. Continue to reinforce support to that local
leader as they continue to cultivate a community of trust, interdependence, and relationships with
the local families. Lastly, develop a culture inside those weekly events that attract individuals

53
who want to serve, speak on stage, and impact their community. Recruit these individuals, train
them accordingly, and continuously nurture them as they go forth. Lead financial events and
seminars in the local community and duplicate the process.
In closing, although these recommendations sound simple and straightforward, it is often
the simplest answers that yield the greatest results. The World Health Organization (WHO)
knows this all too well with the introduction of oral rehydration therapy (ORT). The WHO and
UNICEF advocate the lifesaving treatment and attribute that nearly 450,000 children annually
can be saved from ORT (UNICEF, 2022; WHO, 2024). The fascinating part is the simplicity of
ORT, being that a typical solution includes one liter of water, six teaspoons of sugar, and a half
teaspoon of salt. This simple concoction is responsible for saving the lives of thousands of
children around the world every year, yet millions of dollars of aid went into treating childhood
diarrhoeal disease. Perhaps, at times, the simplest, most effective solution is the last thing on the
mind.
Limitations and Delimitations
The qualitative study conducted carried several limitations and delimitations. The most
glaring limitation includes the sample size interviewed. Although all ten participants were
interviewed accordingly, and the study yielded tremendous insight, only ten participants out of
thousands could have weighed in on this study. Another limitation is the trustworthiness and
credibility of the participants. While it is highly unlikely that any participant knowingly
sabotaged an interview or presented misleading information, it should be noted that this is out of
the hands of the researcher. Additionally, it is important to note that while the researcher adhered
to IRB standards and the research conducted was above reproach, the lack of formalized training
in research and interviewing may have resulted in less optimal participant responses.

54
Delimitations of this study include the scope of the interviews being limited to questions
surrounding barriers and challenges Black and Hispanic individuals face in becoming and being
financial professionals. This narrow focus intentionally kept the study on track with answering
the research questions; however, it prevented more fruitful discussions that could have yielded
valuable insights. Next, the researcher made every attempt to find a diverse array of participants
from around the country with varying backgrounds and degrees of experience but was limited to
anyone who identified as a financial professional and the window of availability. Finally, the
questions asked were intentionally stacked and worded to elicit deep emotional responses to
gather greater insight. However, these questions were designed to progress the conversation
forward in a linear fashion to stay on track with time and narrow the scope to the purpose of the
research.
Recommendations for Future Research
This study used a qualitative interview approach to explore the various possibilities that
there are so few Black and Hispanic financial professionals in the United States. Specifically, it
opened the dialogue for successful Black and Hispanic financial professionals to share their
insight on what did and did not work in their journey to becoming a financial professional in the
United States. Future researchers may wish to investigate Black or Hispanic individuals who
either left the financial services industry or who failed to complete their initial licensure or
training. Researching these two categories would validate this research and provide insight into a
more nuanced approach to reducing pain points associated with joining the industry. The study
also brought forth the idea of mindset and overall attitudes embraced by financial professionals
and the impact it had on their careers. More research could be done specifically around the
aforementioned professional mindset that was adopted by the professionals who participated in

55
the study. Additionally, as mentioned in the limitations section, a larger sample size, broken
down across regions of the country, would provide more validation for the themes and
recommendations presented in this study. Furthermore, narrowing the focus and classification of
the term financial professional might prove noteworthy as insurance agents and fiancnial
advisors may dawn the title financial professional, yet have very different backgrounds and
journeys in their field. Lastly, more research can certainly be done in the more macro space
surrounding best practices for financial professionals to connect with communities of color to
establish trust and also change the narrative of what financial professionals look, sound, and act
like.
Conclusion
Diversity is what gave the United States its motto e pluribus unam (out of many, one) and
nicknames such as the melting pot. Although the United States harbors many types of diversity,
racial diversity has often been a point of contention. From a troubling past with slavery and
racial injustices, the United States has come a long way in 250 years. However, the country faces
a new challenge that not only supports its citizens but also national security.
Senator Charles Grassley of Iowa emphasized in 2024 during his opening statement at the
Senate Budget Committee that the country faces a national security crisis with the national debt
crossing $35T, echoing what Admiral Michael Mullen, the then Chairman of the Joint Chief of
Staff, said in 2010 (United States Senate Budget Committee, 2024). This national crisis is caused
by a fundamental lack of financial literacy and intestinal fortitude to act with boldness and
courage. Financial professionals from all walks of life continue to educate American citizens on
foundational concepts that empower their financial lives and help the country at large.

56
The problem is that without a racially diverse group of financial professionals equipped
with the knowledge and empowered with the skillset to deliver these concepts, the country will
continue to struggle. The United States’ population continues to grow in age and racial diversity
through 2060. The U.S. Census Bureau projects that beginning in 2030, net international
migration is expected to overtake natural births in the United States, 95 million people will be
above the age of 65, and the White population is expected to shrink dramatically by 2060 (Vespa
et al., 2020).
Bringing racial diversity into the financial services industry has long been a goal of
organizations nationwide; however, few have invested time, energy, or resources into truly
understanding the issue and, most importantly, acting on fixing it. The lack of Black and
Hispanic financial professionals has been clearly traced, identified, and called out.
Recommendations on how to rectify this issue have been presented. Organizations and
individuals must recognize the severity and vortex of implications of this crisis and help solve it
by engaging more culturally diverse communities through Black and Hispanic financial
professionals.

57
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Appendix A: Interview Protocol
Two research questions guided this study.
1. What barriers do Black and Hispanic individuals face in becoming financial
professionals?
2. What challenges currently exist that hinder Black and Hispanic financial
professionals from performing at their highest potential once in the industry?
Respondent Type
The participants chosen for this study were five Hispanic financial professionals and five
Black financial professionals. Each professional is fully licensed and credentialed to solicit
financial products and services and has been in the industry for at least six months. These
financial professionals reside all across the United States and are actively practicing. Each
participant volunteered to be interviewed and recorded for research purposes.
Introduction to the Interview
Good afternoon, and thank you so much for taking the time to help me conduct this
interview. My name is Steven Crane, and I am a doctoral student at the University of Southern
California. I am currently pursuing my Doctor of Education in Organizational Change and
Leadership.
My research is centered around the underrepresentation of Black and Hispanic people as
financial professionals in the United States. The purpose of this research is to Uplift the stories
and capture the unique challenges Hispanics face in becoming financial professionals in the
United States.
During this brief 60-minute interview, I am going to ask you a variety of questions
regarding your experience of being a financial professional; however, before we begin, the

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University and I require your consent to proceed with this interview. Please be advised that if at
any point you feel uncomfortable or wish to stop the interview, you are perfectly entitled to do
so, and the interview will be discarded accordingly. With this in mind, do I have your full
permission to continue with this interview and record your voice so I may transcribe it as part of
my research?
Wonderful, and do you have any questions I can answer before we begin our session?
Table 1
Interview Protocol
Interview Questions Potential Probes Question Type
1. What made you decide to go
into financial services?
Interesting, tell me a little more
about that. Experience/Opinion
2. What challenges did you have
to overcome as a Black or
Hispanic person that others might
not have had to endure?
Did you find it difficult or easy
to overcome these challenges? Experience/Opinion
3. What resources did you find
helpful in your journey to
becoming a financial
professional?
Excellent. Are there any other
resources that you found helpful? Experience/Opinion
4. If you had a magic wand and
could make something easier for
Black or Hispanic people to join
the financial services industry,
what would you change?
Interesting, what made you
choose that? Opinion/Values
5. Why do you think there are so
few Black and Hispanic people
working as financial
professionals in the United
States?
I appreciate your insight. Are
there any other possible reasons
you can think of?
Opinion/Values
6. What is the benefit of Black
and Hispanic people becoming
financial professionals?
What do you feel the outcome
will be for Hispanic
communities?
Opinion/Values
7. What attracted you the most to
becoming a financial
professional?
Were there any other reasons you
would like to share? Opinion/Values
8. What do your family/friends
think of you being a financial
professional?
Have you been able to help any
of them in their financial
journey?
Opinion/Values

75
9. What is the most rewarding
part about being a financial
professional?
Can you share a bit more on that? Experience/Opinion
10. How did you view the
financial services industry before
joining?
How do you view it now? Experience/Opinion
11. What do you think is the
hardest part of becoming a
financial professional?
What made you choose that one? Experience/Opinion
12. If there was something you
could change about being a
financial professional, what
would it be?
Is there anything else you wish
you could change? Opinion/Values
13. What are some things that get
in the way of you outperforming
financial professionals who
identify as White?
Are these views shared by other
colleagues? Experience/Opinion
14. What are some barriers you
see that prevent Black and
Hispanic financial professionals
from performing at their peak?
Is there anything at a macro
systemic level that you feel
impacts this?
Experience/Opinion
15. If there was something you
could fix/change tomorrow that
would help accelerate your
growth in your current position,
what would it be?
Has anything prevented you from
taking that action? Opinion/Values

Abstract (if available)

Abstract This study uses critical race theory (CRT) to examine Black and Hispanic individuals’ unique barriers to becoming financial professionals. This qualitative study focuses on one-on-one interviews as the primary data collection method to evaluate the challenges Black and Hispanic individuals face, their journeys, and obstacles they had to or are still overcoming to achieve their goal of becoming a financial professional. This study identified that both Black and Hispanic financial professionals share everyday struggles like difficulties finding role models within the industry, facing imposter syndrome, financial barriers to success, and a shared lack of trust from their own communities. The results showcased a need for better mentorship from the ground up, recognizing racially diverse individuals as success stories and equipping them with the tools and resources necessary to impact the lives of individuals in their communities. Recommendations to rectify the identified issues include developing and deploying a comprehensive financial education program across the country, focusing efforts on community outreach and engagement at a local level, and implementing targeted recruitment and retention initiatives.

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Asset Metadata

Creator Crane, Steven (author)

Core Title Financial equity for all: an evaluation of the underrepresentation of people of color working as financial professionals

School Rossier School of Education

Degree Doctor of Education

Degree Program Organizational Change and Leadership (On Line)

Degree Conferral Date 2024-08

Publication Date 09/09/2024

Defense Date 09/05/2024

Publisher Los Angeles, California (original), University of Southern California (original), University of Southern California. Libraries (digital)

Tag Barriers,diversity,financial industry,Hispanic,interviews,OAI-PMH Harvest

Format theses (aat)

Language English

Contributor Electronically uploaded by the author (provenance)

Advisor Datta, Monique (committee chair), Cerella, Tony (committee member), Ott, Maria (committee member)

Creator Email steven@stevencrane.com

Permanent Link (DOI) https://doi.org/10.25549/usctheses-oUC11399AJW0

Unique identifier UC11399AJW0

Identifier etd-CraneSteve-13510.pdf (filename)

Legacy Identifier etd-CraneSteve-13510

Document Type Dissertation

Format theses (aat)

Rights Crane, Steven

Internet Media Type application/pdf

Type texts

Source 20240910-usctheses-batch-1210 (batch), University of Southern California (contributing entity), University of Southern California Dissertations and Theses (collection)

Access Conditions The author retains rights to his/her dissertation, thesis or other graduate work according to U.S. copyright law. Electronic access is being provided by the USC Libraries in agreement with the author, as the original true and official version of the work, but does not grant the reader permission to use the work if the desired use is covered by copyright. It is the author, as rights holder, who must provide use permission if such use is covered by copyright.

Repository Name University of Southern California Digital Library

Repository Location USC Digital Library, University of Southern California, University Park Campus MC 2810, 3434 South Grand Avenue, 2nd Floor, Los Angeles, California 90089-2810, USA

Repository Email cisadmin@lib.usc.edu