Particularly among those who have newly arrived in the United States, many immigrated individuals choose not to use banks and are wary of financial institutions for several reasons. Cultural barriers may deter them from employing these services, while past negative experiences in their home countries also cause immigrant residents to exercise caution. Financial literacy programs and efforts from banks to become more accessible have been encouraging for this population, but many are still hesitant to open an account.
Language challenges may be the first obstacle an immigrant may face to using banks in Boston, according to Robin Wood, a program manager in banking and finance careers at the Asian American Civic Association. While many banks in Chinatown have worked to make their branches more diverse and inclusive, having staff and tellers who speak Mandarin, individuals may not feel comfortable if they cannot communicate in their first language.
“Let’s think about when you go into a bank, and you’re trying to open an account, and no one speaks your language,” said Wood. “The money is different, the whole economy is different, the laws are different. …For immigrants, it’s language, learning the new economic system, the new banking system. …You come to a great big bank, and everybody’s moving fast and talking fast. That could leave you feeling isolated.”
Some immigrants, like Bao En Qiu, have had more positive experiences with banks in the United States. Qiu moved from China to Randolph, Massachusetts to live with his son in December 2008 and initially felt “helpless,” finding the change “very stressful.” After about half a month, he began working in a restaurant that paid him in checks. An acquaintance told him to open a bank account and referred him to East West Bank, where the staff was patient and understood the language. He only uses a savings account, not a checking account, and most frequently pays for his rent and groceries with cash.
Executive director of the Asian Community Development Corporation Angie Liou said that reluctance to use a bank in the United States might come from a person’s past relationship to banking in the country they left. In some Asian countries, the banking system and the government are intertwined, which may have led to distrust. Immigrants may be guarded about personal information, and they may feel that their savings are not secure, as there may have been incidents of theft in their home countries. In some cases, said Liou, these feelings stem from a general anxiety about authority figures.
“It’s probably a general distrust of large institutions, authorities,” said Liou. “I don’t think it’s limited to just banks. We do a lot of civic engagement, which is getting people to participate in public affairs but also register to vote. There’s also a lot of skepticism there – ‘Will my vote really matter? Will what I say, if I speak up at a meeting, really matter?’ The powers that be – are they just going to make decisions? They’re coming from many places where things are a lot more top down. It’s not a democratic system, so they feel like a lot of things are fixed against them.”
According to Michael Andelman, program manager for Bank On Boston at the Mayor’s Office of Financial Empowerment, immigrants who choose not to use banks in the United States frequently save money within their homes, a practice that is not secure.
“It’s a question that the Internal Revenue Service will ask an individual in the course of an audit – the question, “do you have large sums of money in your home?’” said Andelman. “This is very unsafe, because it could be stolen. Sometimes people who don’t have a home or who are in transition have it on their body. …It has to do with the education, that it’s not safe to have money lying around one’s home. One does have twenty-four hour access to their money when they have a mainstream financial account. But one needs to be told that. …These individuals are paying with cash, as opposed to using a credit card or check.”
Another reason why new residents may not deposit their money in a bank may be that they have worries about their immigrant status, that their information may in some way be passed to the Immigration and Customs Enforcement agency. In addition, said Andelman, some nations that are viewed as terrorist-related countries are on lists for financial institutions that make it more difficult to use their services. But if somebody is turned away from opening an account, it is important to go to a supervisor or branch manager and exercise one’s individual rights.
Wood, who said that she had been employed in the banking business for a long time, emphasized that a personal dynamic is important in having a client view the institution as reliable.
“I’ve worked in banks for many years, and it’s based on trust,” said Wood. “I had to earn the trust of whatever community, because they will keep their money at home – under the mattress, or whatever. And it’s building trust, getting one person in the community to come and bank with me, then another, and another. Finding people in my branch that spoke the language. Once word gets out, they will all usually come to that one branch and that one person.”
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