Related Link: Recent Accomplishments

EXPANDING IMMIGRANTS' ACCESS TO
FINANCIAL SERVICES

Immigrants need improved access to mainstream banking services so that they can develop the banking histories and credit ratings that that are the first steps up the economic ladder toward building assets. They also need the tools – the financial understanding gained from financial education materials – that can help them obtain loans and make better financial decisions. Since many such tools have already been developed within the Appleseed network, Connecticut Applesesed began distributing them to immigrant communities across the state during 2008.

At the same time, for banks to successfully reach and adequately serve immigrant groups, they need to develop products, services and delivery channels that are intended specifically to connect with those communities. Bridging the gap between the banking and immigrant communities requires accurately assessing immigrant populations' financial needs, gauging their interest in - and reluctance toward - financial services, and better understanding of the barriers to and opportunities for increased immigrant use of financial services.

Drawing on Continuing Work from the National Appleseed Network

Other state-based “Centers” in the Appleseed network have been working hard for more than 5 years to help Latino immigrants enter the financial mainstream. For example, New Mexico and Georgia Appleseed each held symposia to connect bank representatives with immigrant community groups and air regulatory issues. Alabama Appleseed developed a financial education curriculum adapted from other sources to reach local immigrant communities. And Chicago, Nebraska and Texas Appleseed have each conducted surveys about the banking services being offered to immigrant consumers. The resources and experience of our sister Centers – including Appleseed’s international remittance initiative called “Fair Exchange – help guide and expedite Connecticut’s unique but related efforts.

Connecticut Project Team’s Agenda

Appleseed Board member Rob Taylor of Day Pitney LLP, one of Connecticut’s leading banking attorneys, chairs a working group with representatives from Citi, RBS/Citizens and Webster Bank that directs this project. Our first step was to engage a pro bono team from financial services research firm Greenwich Associates (www.greenwich.com) to survey bank community representatives to determine which products and services they already offer to Connecticut immigrants.

We have already learned that banks are spending lots of time and money on outreach that has not been particularly successful. As a result, one of our 2008 priorities is establishing relationships with immigrant community groups to gather feedback about how financial institutions can better serve them. To do this, we have begun conversations with organizations that are conduits to immigrant communities regarding our draft survey that assesses the needs of unbanked immigrants. We are simultaneously consulting with other Appleseed Centers about successes in their respective states in helping financial institutions to better serve the immigrant market, overcome barriers and modify their approaches to earn the trust and win the business of immigrants.

Longer term, we plan to develop an extensive statewide coalition of nonprofit partners and immigrant community groups to draw attention to Connecticut's significant economic stake in this issue. Our state's particular demographics (rapidly-growing immigrant populations and persistent out-migration of mid-life, working-age population) amplify the importance to Connecticut's economic prospects of successfully integrating immigrant populations into the financial mainstream.