Alabama Appleseed

Hispanic Financial Access

Currently, Alabama has the 7th fastest growth rate of Hispanic population in the nation. According to the 2000 U.S. Census report, Alabama is the home to over 75,830 Hispanic immigrants, a gross underestimate. Data provided by the 1990 U.S. Census, showed the Hispanic population in Alabama to be only 24,629. This ten-year growth in Alabama’s Hispanic population represents an increase of over 200 percent. Hispanic buying power/disposable income is also growing rapidly. Nationwide estimates in 2004 totaled $686 billion, and it is expected to increase to $992 billion by 2009. In 2004, the buying power for Hispanic’s in Alabama was $1.7 billion, with an increase potential of $2.9 billion by 2009. Given these statistics and the rapid growth of Hispanic immigrants in Alabama, it is disturbing that Hispanic immigrants, whose financial contribution to the Alabama economy is growing significantly, are largely un-banked. By reason thereof, they are often victims of robberies and predatory lending practices. In 2006, Alabama Appleseed started a project called the Hispanic Financial Access Project. This project, modeled after efforts of the Texas, Chicago and Nebraska Appleseed Centers, will improve the accessibility of banks and other financial services to Hispanic immigrants in Alabama. The goal of the project is to expand the banking services offered to the Hispanic community to include a diverse spectrum of financial services: small loans, mortgage loans, and expanded checking, savings, retirement investments, and foreign remittance products. This project has reached out to both the banking community and to the Hispanic community in an effort to educate and assure both communities that increasing financial access to Hispanic immigrants living in Alabama is mutually beneficial. We have developed and distributed our own financial/banking literacy materials and have widely distributed similar educational materials developed by other Appleseed Centers also doing this work. We have also distributed an Appleseed Network report on remittance model practices and are participating on a limited basis in the Appleseed Network collaborative project on remittance practices.  The project will help stabilize the Hispanic workforce by giving them access to banking services and helping Hispanic immigrants understand the value of developing a banking history and a good credit rating, which will allow them to acquire things such as a car, a house or a business loan. By increasing their financial access to banking services, the project will lessened the risk of Hispanic immigrants being victims of crimes of robberies and burglaries and predatory lending practices.

Last Updated ( Friday, 02 May 2008 11:00 )