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Ethnicity And Financial Exclusion: How Fringe Banking Has Taken Hold In Ethnic And Immigrant Neighborhoods, Marie-Christine Pauwels

Ethnic Studies Review

The latest FDIC survey (2012) on Americans excluded from regular banking services reported that between 8% and 20% of American households have either little or no relationship with a bank, savings institution, credit union, or other mainstream financial service providers. The only option for these customers, many of whom are ethnic minorities and immigrant communities, is to turn to AFS - Alternative Financial Services-the official name of fringe banking. Fringe banks like Ace Cash Express, EZLoans, or Mr. Payroll deliberately target the low- to moderate-income inner-city residents, often because these neighborhoods have become deserted by regular banks, making it difficult …