Empowering Financial Inclusion: Citi Foundation's Community Finance Innovation Fund Expands Impact

The Citi Foundation's renewed commitment to the Community Finance Innovation Fund signifies a strategic investment in advancing financial health and inclusion across low-income communities in the United States. This initiative aims to support a new cohort of innovative Community Development Financial Institutions (CDFIs) that are pioneering solutions to address persistent economic challenges and bridge the wealth gap.

Unlocking Brighter Futures through Community-Driven Innovation

Addressing the Financial Health Crisis

The financial health crisis in America is a pressing concern, with only 30% of Americans considered financially healthy, according to the Financial Health Network. This alarming statistic underscores the urgent need for innovative solutions that can empower individuals and families to achieve greater financial stability and well-being. The Citi Foundation recognizes the pivotal role that CDFIs play in this ecosystem, providing access to responsible and affordable financial products, as well as tools and services that catalyze positive economic impacts.

Empowering CDFIs as Agents of Change

By investing an additional $25 million in philanthropic support through the Community Finance Innovation Fund, the Citi Foundation aims to bolster the capacity and accelerate the community impact of a new cohort of nonprofit community finance innovators. These organizations will be tasked with implementing novel ideas that advance financial inclusion and financial health in low-income communities across the United States.

Fostering Talent and Operational Excellence

The Community Finance Innovation Fund will support initiatives that address critical areas, including human capital and talent development, the creation and delivery of innovative financial products and services, and the leveraging of technology and operational efficiencies to promote greater financial inclusion and health. By investing in these strategic areas, the Citi Foundation seeks to strengthen the CDFI sector and enable these organizations to scale their impact and reach.

Driving Cross-Sector Collaboration

The Citi Foundation's commitment to the Community Finance Innovation Fund underscores the importance of cross-sector collaboration in addressing the financial health crisis. By partnering with organizations like the Financial Health Network and Opportunity Finance Network, the Citi Foundation aims to amplify the voice and influence of the CDFI sector, while also fostering knowledge-sharing and the adoption of best practices.

Building on a Legacy of Impact

The Community Finance Innovation Fund builds upon the Citi Foundation's longstanding support for the community finance sector. This includes the provision of unrestricted grants to 30 CDFIs in 2020 to support small businesses impacted by the COVID-19 pandemic, as well as the inaugural iteration of the Community Finance Innovation Fund in 2022, which enabled CDFIs to meet increased demands for capital and address persistent economic challenges.

Investing in the Future of Financial Inclusion

The Citi Foundation's renewed commitment to the Community Finance Innovation Fund represents a strategic investment in the future of financial inclusion and financial health. By empowering a new cohort of CDFI innovators, the Citi Foundation aims to catalyze transformative change, unlock brighter futures for individuals and families, and contribute to the closing of the racial wealth gap – ultimately building a more equitable and prosperous society for all.