Many AmericansAfrican-Americans “lack access to mainstream financial services”, according to a study by McKinsey. Fewer banks in non-white neighbourhoods means minorities are forced to depend on expensive financial services like payday lending. Additionally, banks in black neighbourhoods often require higher account balances to avoid service fees, an average of $245 more than white neighbourhoods. Increasing access to basic banking services could save individual black African-Americans up to $40,000 over their lifetime and reduce the expanding racial wealth gap. As of 2016, the wealth of the average white family was ten times higher than the average black family.
Many African-Americans “lack access to mainstream financial services”, according to a study by McKinsey. Fewer banks in non-white neighbourhoods means minorities are forced to depend on expensive financial services like payday lending. Additionally, banks in black neighbourhoods often require higher account balances to avoid service fees, an average of $245 more than white neighbourhoods. Increasing access to basic banking services could save individual black Americans up to $40,000 over their lifetime and reduce the expanding racial wealth gap. As of 2016, the wealth of the average white family was ten times higher than the average black family.