As the burden of student loan debt continues to mount, financial education has become increasingly important in higher education. To support students’ financial well-being, HBCUs (historically Black colleges and universities) may outsource financial literacy education to third party providers such as banking and financial service experts. Banking institutions, revered as financial service leaders, are at the center of this inquiry, with consideration of their historical relationship with the Black community.
The theoretical underpinnings of this study draw from resource dependency theory and the theory of corporate social responsibility. These theoretical lenses support perspectives on why HBCUs outsource financial literacy education and why financial service companies offer the services at no cost. Further, the theory of financial literacy suggests that financial education will lead to improved decision-making and financial well-being.
Existing literature does not explore third party financial literacy education and the operational relationship through the perspectives of HBCU leadership and third-party providers. Using a single qualitative case study, this study explores the role and approach of third-party financial service providers in offering financial literacy education to students at HBCUs. Moreover, this research explores what makes a successful relationship between HBCUs and third parties.
Insight from this research contributes to the broader understanding of financial literacy education outcomes. Research finds successful outsourced relationships for third party financial literacy education fall into three themes. The themes are relatability to the community, resource support for institutions and students, and building trust and improving reputation. Further, the primary motivations for financial service providers align with the economic as well as philanthropic components of corporate social responsibility and are a combination of wanting to support the Black community with financial knowledge and wanting to promote standard business goals.
The theoretical underpinnings of this study draw from resource dependency theory and the theory of corporate social responsibility. These theoretical lenses support perspectives on why HBCUs outsource financial literacy education and why financial service companies offer the services at no cost. Further, the theory of financial literacy suggests that financial education will lead to improved decision-making and financial well-being.
Existing literature does not explore third party financial literacy education and the operational relationship through the perspectives of HBCU leadership and third-party providers. Using a single qualitative case study, this study explores the role and approach of third-party financial service providers in offering financial literacy education to students at HBCUs. Moreover, this research explores what makes a successful relationship between HBCUs and third parties.
Insight from this research contributes to the broader understanding of financial literacy education outcomes. Research finds successful outsourced relationships for third party financial literacy education fall into three themes. The themes are relatability to the community, resource support for institutions and students, and building trust and improving reputation. Further, the primary motivations for financial service providers align with the economic as well as philanthropic components of corporate social responsibility and are a combination of wanting to support the Black community with financial knowledge and wanting to promote standard business goals.