Access To Immigrants

Having financial access and understanding financial services and which to choose from are extremely important for economic success. Unfortunately, financial literacy and access to these services are a major concern for immigrants in the United States. Many families immigrate in search of economic security and financial opportunities, but are the necessary steps being taken to provide this key component to achieving the “American Dream” to immigrants and their families?
Access to financial services has direct implications on the future of second generation immigrants. Most immigrants are members of economically vulnerable groups meaning that access to loans, checking and savings accounts, and mortgages are crucial to financial stability. …show more content…
Check-cashing places charge high transaction fees yet appeal to immigrants as they are often open late and have workers that speak their native language. Immigrants are more prone to theft as large amounts of cash are carried and/or kept in their homes. In addition, monthly bank fees can become overwhelming over time. Lastly, lack of credit and understanding of credit score keep low-income immigrants from access to loans. In an effort to encourage immigrants to partake in the formal financial and banking system of the U.S., we must overcome the cultural, language, and economic barriers that immigrants face. It is imperative for financial services and institutions to adapt and meet the needs of consumers, especially as the immigrant population continues to …show more content…
Challenges vary by immigrant groups based on socioeconomic status, lack of credit history, limited loan access, documentation requirements, and English language proficiency. By addressing these challenges, immigrants can slowly begin to take advantage of financial institutions and their offerings. Additionally, financial institutions face challenges as well that also need to be taken into consideration. These challenges include inaccessibility, lack of trust from immigrant populations, and lack of appropriate staff. There are many organizations that are taken the appropriate steps to ensure that all of the issues are being addressed for the inclusion of immigrants into the U.S. banking. Credit unions, non-profits, and community-based organizations are raising awareness, providing financial education, creating language-accessible materials and ensuring that financial products directly serve immigrant populations. One of the biggest financial services used by immigrants is remittances transfers, which is one of the biggest challenges for formal banking