TIAA-2021

TIAA, originally founded in 1918 to provide first-rate financial services to employees of nonprofit organizations, has undergone a major transformation. Historically focused on higher education, TIAA faced intense competition from companies like Fidelity and Vanguard starting in the early 2000s, compelling it to expand its product offerings and increase its visibility through marketing. By 2021, under CEO Thasunda Brown Duckett, TIAA aimed to attract more diverse customers from the nonprofit sector, particularly underserved minorities, women, and early-career professionals, who had historically been less engaged with the firm's services.

These three groups present unique challenges. Underserved minorities often face a significant wealth and income gap, exacerbated by less favorable labor market experiences, higher levels of debt, and historical barriers to wealth accumulation, such as housing discrimination. Women, on average, tend to have lower earnings and more career interruptions, making it crucial for TIAA to tailor its products and messaging to meet their specific financial planning needs. Early-career professionals often prioritize immediate financial concerns over long-term retirement planning. This demographic is less familiar with TIAA, and many lack the financial knowledge to recognize the benefits of early retirement savings. How can TIAA overcome these challenges to attract members of these three groups?