Why it's imperative we bridge the digitial racial gap

The Covid pandemic made us aware of the yawning racial gap we face in this country when it comes to access to healthcare. It turns out that the gap in access to technology may be even greater, and in the long run, could be even more damaging to our society.

Our research team just completed a paper, “America’s Racial Gap and Big Tech’s Closing Window,” that documents how much ground Blacks and Hispanics have to make up if they are to compete in the digital economy of tomorrow. Apjit Walia, our Global Head of Technology Strategy, and the author of the report put it this way:

“If this digital racial gap is not addressed, in one generation alone, digitization could render the country’s minorities into an unemployment abyss.”

Deutsche Bank embarked on the project expecting to find significant disparities. What we discovered was a gulf that surprised even us. If the conclusion seems unduly dire, consider some of the report’s key findings:

• While 83% of Whites own a personal computer, that rate drops to 60% for Blacks and 51% for Hispanics.
• Blacks and Hispanics are 10 years behind Whites in their access to broadband – almost four times as many Blacks as Whites have poor tech connectivity.
• Given the exponential growth of the digital economy, 76% of Blacks and 62% of Hispanics could be shut out or be underprepared for 86% of U.S. jobs by 2045.

The Covid experience showed in real time just how wide these gaps are and the consequences they can have. Using cellphone data we were able to track mobility in predominantly Black and White areas in three major U.S. cities during the month of April, the peak of the Covid lockdowns. We found that those in Black neighborhoods had to venture out of their homes 135% more than those in White neighborhoods at a time when venturing out posed major risks. They were forced to take those risks, in part, as a result of the digital divide. Simply put, they had few ways of making a living from home because they lacked the tools to do so.

We think the divide can be narrowed, and the effort can be led, ironically, by the companies that performed the best during the Covid crisis, the nation’s leading technology firms. When Americans had to work, shop and get their healthcare from home, Big Tech was there with the solutions. Their businesses boomed and collectively the five biggest companies added $2 trillion in market cap during the pandemic.

For a tiny fraction of that, less than 1%, Big Tech could fund an initiative that would make a meaningful dent in the digital gap. I’ll outline the pieces of that initiative in a second post shortly. Today, I want to explain why it would make sense.

The short answer is that it would benefit everyone. The Big Tech companies, under scrutiny from both political parties for the clout they wield, would buy an incalculable amount of good will and demonstrate that they are part of the solution, not the problem. 

Minorities would be better able to compete in a world where digital skills will only become more important. America would be better off because a country where everyone has a chance to share in the benefits of prosperity is a healthier, happier and more stable place.

There are not many opportunities in life to create a situation where everyone wins. This is one of them.