If you are from the Bronx, you understand the resilience, drive, and heart that comprises our great community. I see this everyday working as an organizer, having the privilege to interact with other community leaders. I am here to lend a helping hand to my neighbors in need, and a throughline of my work is finding bigger picture solutions and development opportunities to help us in day-to-day life.
Economic development in communities like ours often hinge upon access to credit and robust financial services. The proposed merger between Capital One and Discover holds immense promise for supporting development projects, especially those focused on clean and sustainable growth. This merger aligns perfectly with the Biden administration’s goals of fostering economic and environmental justice.
Capital One has consistently demonstrated its commitment to community development. In 2023, they reported an impressive $4.75 billion in community development loans, with a significant portion dedicated to affordable housing for low-to-moderate-income households. This kind of investment is essential for the revitalization of our neighborhoods, providing the financial backbone needed for sustainable development projects.
Moreover, Capital One’s dedication to serving historically underserved communities is unparalleled. With one-third of its branches located in low- and moderate-income (LMI) neighborhoods, they have established themselves as a leader in making financial services accessible to all. Their pioneering work in providing credit cards for individuals building or rebuilding credit at lower rates and fewer fees has enabled many to improve their credit scores. In fact, 69% of Capital One customers who started with a subprime credit score have reached a prime score of 660 or higher.
Underserved communities, often facing barriers to credit access, would benefit immensely from this merger. Improved credit access means more opportunities to secure housing, start businesses, and pursue education, which are crucial for breaking the cycle of poverty and fostering economic stability. For small business owners, enhanced credit-building tools and financial services from a combined Capital One-Discover entity would mean better access to capital, essential for growth and sustainability.
Additionally, this merger would streamline and expand financial literacy programs, offering more comprehensive support to individuals and small businesses. By combining their strengths, Capital One and Discover can create a more inclusive financial environment, empowering underserved communities and small business owners to achieve their full potential and contribute to economic growth. This merger represents a pivotal step towards a more equitable financial landscape.
Supporting the Capital One-Discover merger is a step towards equitable economic development- and a no brainer for helping communities like ours. By enabling more clean development projects and expanding access to essential financial services, this merger will help build a brighter, more inclusive future for the Northwest Bronx and beyond. Now, I am looking to regulators to approve this merger and take a significant step toward achieving our shared goals of economic justice.
By Leah James
