Over 30 million people in the U.S. do not have bank accounts. Millions more find bank accounts do not serve their needs. Many of these individuals are immigrants, people of color, young, and poor.
People without reliable financial services depend on fringe service
providers like check cashing agencies who often charge predatory fees.
Without a bank account they must store large amounts of cash at home,
or to carry it around--making them easy target for criminals.
In 2006, our partners conducted 481 interviews and four focus groups of low wage worker about
their goals and the kinds of services they need to acheive their
goals. We used their insight and experience to help us develop the
Stored Value Card project and our Financial Services program at the
Center for Community Change.
We learned that :
- Many of the surveyed workers had high financial aspirations but 47% did not have bank accounts.
- Major
barriers to acheiving financial success include: identification
requirements, language barriers, hidden fees, penalties, inconvenient
bank hours and locations, and the lag time between a check deposit and
access to funds.
- People who earned $15,000 - $20,000 spent $500-$1,000 each year on financial services such as check cashing, money wires, etc.
Working people are blocked from climbing up the economic ladder by
substantial fees and a lack of safe money storing options that make it
extremely hard to build assets, build credit, or accumulate wealth.
In 2005, the Center for Community Change partnered with
three national networks of worker centers (Enlace, Interfaith Worker
Justice, and National Day Laborer Organizing Network) and nine
individual worker centers on the Stored Value Card project to address the needs of low-wage workers and the organizations they build.
