Major financial services corporations earned an overall "C" from the NAACP Financial Services Industry 2003 Report Card, issued by the National Association for the Advancement of Colored People (NAACP) on July 15th during a press conference held at the 94th Annual Convention in Miami. The NAACP financial services survey reflects industry activity for 2002 and is designed to offer consumers comparison information to make better choices for products and services. This year, 12 companies, with revenues of at least $5 billion and currently provide full-service, large commercial and branch banking, were surveyed on their diversity opportunities in employment, advertising and marketing, vendor relationships, community service and charitable giving.
NAACP President & CEO, Kweisi Mfume, said: "The NAACP Financial Services Industry 2003 Report Card reveals critical information about the financial services industry. It was because of community and neighborhood residents fighting against the discriminatory practices of banks and lending institutions that the Community Reinvestment Act was born. Because of this law, there is now greater access to those institutions and banks are encouraged to get involved and stay involved in community development. We at the NAACP want the U.S. Congress to strengthen the Community Reinvestment Act, to ensure fair access in mortgage lending to people of all colors."
The surveyed companies were: Wachovia Corporation, J.P. Morgan Chase & Company, Bank of American, SunTrust Banks, Incorporated, Citigroup Incorporated, PNC Financial, Key Corporation, National City Corporation, Bank of New York, U.S. Bancorp, Wells Fargo & Company and Bank One Corporation. Only three out of the 12 surveyed companies received overall grades of "B-". The remaining companies received "C+" or below. For the second consecutive year, Bank One Corporation did not respond to the survey and received an "F". This is the survey's third year.
The report showed that while the industry overall received a "C-" in employment, African American representation has increased over the past three years. In advertising and marketing, the surveyed companies showed poor results, with only two out of 12 receiving a grade higher than "C+", which fall, in between needs improvement and good. Vendor relationships received the poorest grades, with an overall score of "D+". Only one company Wachovia Corporation, scored higher than a "C".
Mfume said: "It is clear, that while the financial services industry has put programs in place to develop vending relationships with minorities, this area still represents its greatest challenge. Despite the fact that this industry has shown consistent progress in creating diversity opportunities, there remain major stumbling blocks that stand in the way of ridding it of discrimination and denial of opportunity."
This year, Wachovia Corporation ranked first overall, with a grade of 2.90 (B-), earning a slight increase in score from 2002, when it received a grade of 2.76 (B-). The second highest overall score was earned by J.P. Morgan Chase & Company, with a grade of 2.81 (B-). It also showed a slight improvement from 2002, with a score of 2.71 (B-).
Mfume said, "The results of the survey will be disseminated nationally to trade organizations, the national media, all 1700 NAACP Branches nationwide as well as thousand of others who are members of our 40 plus co-sponsoring organizations."
NAACP BANKING FINAL GRADES 2003
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