Investing in capital markets is one of the most effective paths for people to build long-term wealth and financial security. In recent years, technology has made investing more accessible to individuals—but the gaps remain stark, particularly for investors who are Black, Latinx, and female. After prior research that established inclusive product design as a viable pathway to serving these populations, Commonwealth launched the Investor Identity Research Project funded by The Nasdaq Foundation and today we’re thrilled to announce that investing platforms Ellevest and Public are joining the project!

This project will include an 800-person investing pilot focused on understanding how investor identity develops. Participants will be predominantly Black and Latinx, with household incomes ranging from $30k to $80k. The participants on the Ellevest platform will be exclusively women. Ellevest and Public will be providing platforms on which our research participants will invest, and will be testing a variety of interventions along the way to determine the effectiveness of specific design elements for improving the investing experience.

Ellevest exists for the same reason that Women’s History Month exists: because the world wasn’t built with women in mind—and that’s why we’re all about building women’s wealth and addressing the gender wealth gap. Like racial injustice, and climate change, and world hunger, the gender wealth gap is a systemic issue, and it will require systemic answers. We’re thrilled to partner with Commonwealth to help get more money in the hands of women.”

Sallie Krawcheck, Co-Founder and CEO, Ellevest

As all eyes are turned on the equity advancements—and gaps—for women during Women’s History Month, this project seeks to create sustained and long-term impact by enabling investing platforms to build products that better engage underrepresented investors, mostly women—particularly women who are Black and Latinx—in investing.

In previous research, Commonwealth found that one of the key barriers to participation in capital markets for women and people of color is “investor identity.” This includes the perception of oneself as the kind of person who can or should invest and the feeling that one belongs in the community of people who invest. Commonwealth’s research has found that two-thirds of women in the workforce earning low and moderate income want to invest in capital markets, but fewer than 40% actually are doing so. The intent to invest fuels this continued work to further uncover the barriers for doing so—and the product innovations that create a more inclusive investing environment. 

When women who are Black and Latinx engage with investing, we are taking a key step towards closing the racial and gender wealth gap. Investing is a viable pathway to wealth, and our work focuses on enabling investing platforms to build products that meet the unique needs of underrepresented populations by better understanding investor identity and incorporating inclusive design principles. We’re excited to continue diving into investor identity and inclusive product design to create proven recommendations for financial services and fintech companies to implement.”

Paula Grieco, Senior Vice President, Commonwealth

The Investor Identity Research project is part of Nasdaq’s New Investor Initiative, which expands its commitment to diversity in investor engagement through a portfolio of partnership organizations. Investing platforms Ellevest and Public have joined the project to test innovations in product design that meet the needs of underrepresented investors and to develop product innovations that will support new investors and women of color to invest as a channel towards closing the racial and gender wealth gap, making wealth building accessible to all.

Our mission is to make the public markets work for all people by offering access to a range of investment vehicles, from stocks to treasuries, as well as context and education around those vehicles. Inclusive product design that meets the needs of underserved consumers and engages first time investors is a key part of that goal, and we look forward to continuing our work with Commonwealth.”

Katie Perry, GM, IR Innovation, Public

The findings from this work will help engage new investors in the capital market, creating a new pathway to wealth.

We are committed to overcoming the systemic barriers communities of color, particularly women of color, face in their efforts to generate and sustain wealth. Our partnership with Commonwealth is designed to provide actionable insights to investing platforms that will enable them to broaden their user base and build products that help to close the racial and gender wealth gap.”

Jailan Griffiths, President, Nasdaq Foundation

As Commonwealth and The Nasdaq Foundation continue to determine the role of investor identity in the accessibility of wealth building through investing, we aim for our research to persuade investing platforms to incorporate design choices that facilitate both the development of investor identity and healthy investing habits, and to broaden the idea of who is and is not an investor.