Author, editor of The Color of Money column in The Washington Post, and TV and radio guest Michelle Singletary addressed a critical topic in the finance industry during her interview on The Long View. Alongside the coronavirus pandemic, another force is plaguing the world with lasting economic impacts: the lack of diversity in financial services.

Singletary’s message is simple: we need diversity. Without it, the racial wealth gap will continue to widen and a diverse population of investors will remain underrepresented, underserved and undervalued.

Here are excerpts from Singletary’s conversation:

The disproportionate impacts on people of color during the crisis
Singletary: I wrote about a report by the Urban Institute Housing Policy Center. They were examining past crises and storms and their impact on African American homeownership. In all of these storms – the Great Recession, Hurricane Katrina, and now even COVID-19 – frontline workers, those low-income workers, many of whom are disproportionately made up of African Americans and minorities, have first lost their jobs. They’re going to be out of work longer, and they’re going to have a harder time finding a job.

Factors still in play today
Singletary: There is still discrimination in employment; there is still a huge pay gap. African Americans with the same resume and work history are less likely to be called back for a job than a white American. And so, they can’t recover that fast. And without a job, without a job, and without equal pay, that impacts their ability to buy a home. We know home equity for most Americans, even though Morningstar focuses on investing, but we know that for most Americans, their home equity is tied to the equity in their home.

In 2020, the homeownership rate for African Americans is about the same as it was when housing discrimination was legal. It is through home equity that families can bequeath money to their heirs, perhaps borrowing some to help someone with a down payment. He is there for you in difficult times that you can exploit. Due to discriminatory practices, African American homes in similar communities with the same type of amenities are not valued in the same way as this home in a predominantly white neighborhood. We feel it because it [COVID-19] hit so quickly and so hard, and we could face this for another 18 months to two years, it will surely impact the ability of African Americans to buy homes.

Where to start to make changes
Singletary: We approach it in different ways. There must be a convergence of many things.

One policy idea is to set up down payment programs to make home ownership more accessible to people who earn less and are considering lending to ensure there is no discrimination. During the Great Recession, there was a lot of predatory lending. African Americans with the same credit profile and income were getting loans at a much higher rate than white Americans. We need to ensure that homes that are similarly located in black neighborhoods are not assessed at a lower value than homes in white neighborhoods. It’s not just about putting policies in place, it’s about making sure people can get affordable housing.

And then, on a personal level and more related to financial literacy, we try to help people understand when the right time is to buy a house. One of the biggest questions people ask me is should I buy a house, interest rates are low, prices are low. Don’t watch the interest rate, don’t watch what the markets are doing, because none of that will matter if you’re not ready for that mortgage. If you have a lot of student debt, credit card debt, even a car loan, I just think you should get rid of all of that before you buy a house.

How the financial sector is responsible
Singletary: For many people, it is difficult for them to pay for financial advice.

The financial industry has always kind of shunned African Americans, thinking they don’t have money, and there are some who don’t, but there are a lot who do, and they need help. And people like to see people who look like them. They trust them. There are certain community dynamics that you need to understand. Let’s not forget that African Americans have been exploited for decades, and so they are very suspicious of financial planners, they are very suspicious of banks, and they are very suspicious of government for good reason.

So you have to understand that. You have to approach them in a different way. You have to go where they are, whether there’s some kind of convention hall or they’re in the community center. This is where you have to go to join them.

My husband and I have had a financial planner for 15 years or more. We had an African-American financial planner, and before the stocks crashed, I was filling out some paperwork and saw her plan for us about 15 years ago. We have followed each of his advice and we are in better shape. One of the things she made us do was not be so conservative in our portfolio because I told her I would only invest in bonds and not invest in stocks . My grandmother was all about savings bonds and CDs–just savings products, she couldn’t see anything else. My financial planner made me realize that this was not going to give me the growth I needed. She encouraged us to save for our children in a 529 plan. Even though I work for personal finance, when 529 plans started, I didn’t know much about it. She told me about it and we opened 529 plans for all our children. We sent and are sending our three children to college debt free through their 529 savings plan because we have been saving for them for 20 years.

It’s important that you understand and have people who can understand some of these nuances of dealing with people of another race or whether they’re female or black or Latino, so that you can break through the barriers that they have mistrust.

Why the financial sector needs diversity
Singletary: It’s so important to have a diverse workforce, and I can’t believe we’re still having this conversation in 2020, that somehow people don’t realize you need of diversity. You need age diversity. You need older financial planners and younger financial planners; you need female financial planners; you need black financial planners; you need hispanic or latino. You need planners who are people of faith. You have to accept this idea that even though there are differences, we are still the same. We still need to save for retirement; we are all still going to age; we’re all still going to have to pay for long-term care. Don’t just sit back and say, oh, we can’t find anyone because you haven’t invested the money or the time to train people so they can serve a population that desperately needs your aid.

This article was adapted from an interview that aired on Morningstar’s The Long View podcast. Listen to the full episode.