Transforming Bank Deserts: How to Be Part of the Solution

Bank deserts—areas with limited access to financial institutions—pose significant challenges to Native American communities. These underserved areas often struggle with higher poverty rates, limited economic opportunities, and increased vulnerability to predatory lending. But by understanding the problem and taking collective action, we can transform bank deserts into oases of financial opportunity. This guide outlines how individuals, communities, and organizations can be part of the solution.

1. Understand the Impact of Bank Deserts

Financial Exclusion: Lack of access to banks limits opportunities for saving, building credit, accessing affordable loans, and participating fully in the economy.

Economic Disadvantage: This can perpetuate cycles of poverty, hinder business development, and limit educational opportunities.

Predatory Lending: Bank deserts often become targets for predatory lenders who offer high-cost loans with unfavorable terms, trapping individuals in debt.

2. Advocate for Change

Raise Awareness: Educate your community about the challenges of bank deserts and the importance of financial inclusion.

Support Policy Changes: Advocate for policies that encourage banks and credit unions to establish branches in underserved areas.

Community Engagement: Participate in community meetings and discussions about solutions to address the lack of financial services.

3. Embrace Alternative Financial Services

Credit Unions: Support and utilize credit unions, which are member-owned financial cooperatives that often serve communities overlooked by traditional banks.

Community Development Financial Institutions (CDFIs): CDFIs are mission-driven lenders that provide financial services in underserved communities.

Mobile Banking and Fintech: Utilize mobile banking apps and online financial services to access accounts, make payments, and manage finances, even without a local bank branch.

4. Promote Financial Literacy

Empowerment Through Education: Financial literacy is crucial for navigating the financial landscape, making informed decisions, and avoiding predatory lending.

Community Workshops and Programs: Support and participate in financial education programs offered by NFDC, tribal organizations, or community centers.

Mentorship: Share your financial knowledge and experience with others in your community, particularly young people.

5. Support Local Businesses and Initiatives

Economic Development: Support Native-owned businesses and entrepreneurs to stimulate economic growth and create jobs within the community.

Community Investment: Invest in community development initiatives that promote financial inclusion and economic opportunity.