By Melissa K. Wrapp and Bill Maurer, University of California, Irvine
In 2021, researchers from the University of California, Irvine partnered with the Filene Research Institute to study the role of financial institutions in our era of mis- and disinformation. This partnership, known as “Community Credit,” was funded by the National Science Foundation. Many scholars point to mis- and disinformation as central to the contemporary problem of trust and technology, linking a rise in “fake news” and false information across media channels to a decline in trust.
Community Credit takes a different approach from fact-checking or promoting digital financial literacy, though recognizing their importance, this report starts from a place of acknowledging that even before the digital age, there were good reasons why people in some communities distrusted financial service providers. We cannot ignore the deep history of racialized exclusion and predatory inclusion of people of color in financial services, and ongoing patterns of racial inequality in banking access and racialized gaps in wealth distribution. From this perspective, there are legitimate reasons for “distrust.” It is thus not only that historically marginalized communities are “mistrusting” in this context, but rather that the financial services industry must work to become more worthy of trust.
Trust is currently at an all-time low in the financial services sector, particularly among low-income and minoritized communities. Emerging technologies may exacerbate challenges for credit unions aiming to establish connections with these crucial segments, as detailed in the report, which concludes with three key takeaways for credit unions seeking to build trust in the communities they serve.
To learn more and download a free copy of the guide, visit:
https://www.filene.org/reports/tech-and-trust-building-credibility-in-your-community