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Citi's Impact Fund. Comments by Nathan Pratt, Impact Investing Intern, University of Maryland.


With the record levels of profits banks have made in 2019, Citigroup is responding by allocating a portion of this money for investments in companies with positive social impact. Citi announced they are starting a $150 million Citi Impact Fund, which will also help fund minority and women owned businesses.

Businesses of this nature represent great potential economic growth for a number of reasons. First, minority and women owned businesses are underrepresented in overall business activity due to structural flaws in the banking system. I believe there is great demand for them.

Given the reality that lack of access to credit is one of the biggest hurdles these entrepreneurs face, the Citi Impact Fund could help address this issue. Furthermore, investing in businesses that promote positive social impacts would likely be beneficial to the average citizen, considering these firms attempt to help provide better infrastructure, access to information, and sustainability.

In conclusion, the Citi Impact fund is a step in the right direction, from an economic perspective. We can only hope that more banks decide to follow in CitiGroup’s footsteps.
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