James Gutierrez Suggests Policy Reform Include Some Carrots – Not Just Sticks

In her article, James Gutierrez Finds Workable Solutions to Improve Low-Income Situations, Angela Scott-Briggs reviews the disparity issues facing Americans today and discusses James Gutierrez’s thoughts on “Fixing” the situation.

James Gutierrez suggests that rather than waiting for the government to act, it may be more of a “middle up” action that moves to improve the situation. “Responsible companies” could help low income families overcome hidden financial disparities that penalize the poor. Two finance companies, Aura and Oportun, both run by Gutierrez, help people “hack” a finance system that keeps them from financial opportunities by helping them attain a better credit score. While both companies are CDFI certified, Gutierrez points out that such institutions are underfunded and that additional funding is needed to better serve black owned banks and their customers.

Two examples of the racial nature of the wealth gap are the inability for black households to recover from the 2007-2009 housing market crash and Covid 19. While white families have been able to recover from the housing crash, black families still suffer increasing financial losses. Likewise, after Covid, white unemployment fell while unemployment rates for blacks and other minorities continued to increase. While financial issues, sickness and death, have adversely affected minority communities, James Gutierrez points out that there are no financial and insurance offerings tailored to these communities. Therefore, he has established a “mobile first platform” to provide insurance and banking opportunities to these under-served communities.

James Gutierrez suggests that financial policy should provide “carrots and not just sticks” as an incentive for companies to provide tailored services for under-served communities. That legislation should provide the ability to tailor service to the situation. Not just punish providers for working outside the box.

Learn more about James: https://prabook.com/web/james.gutierrez/3781317