Immigrant Access to Financial Services

Texas Appleseed is working to broaden access to formal financial services for underserved low income and immigrant communities. We encourage national, regional, and local banks and credit unions in Texas to adopt policies and offer products that will attract immigrant and low-income consumers. Texas Appleseed also offers financial education material in both English and Spanish to help these consumers understand available financial products and services. In addition, Texas Appleseed is working to expand consumer protection and consumer awareness about the need for transparency in pricing of money transfer services to immigrants’ countries of origin.

Latest News

• Texas Appleseed released its "Banking in a Global Market" report in January 2008. This guide offers financial institutions a comprehensive, hands-on approach to setting up transparent and efficient remittance services, drawing on the experiences of large and small financial institutions throughout the United States.

• The Appleseed “Fair Exchange” pilot is now in the evaluation phase. The pilot tested a market-based approach to improving pre-transaction pricing disclosures for international remittance.

• Ann Baddour with Texas Appleseed and Edna Butts with Austin Sen. Kirk Watson's office are co-chairing Financial Fitness Greater Austin 2008. Week-long activities during April 21-27, 2008, will highlight financial literacy and the importance of beginning early to build savings.

Project Background

Motivated by a desire to reduce the escalation in crimes targeting recent immigrants, Texas Appleseed, in partnership with the national Appleseed office and Appleseed Centers in Alabama, Chicago, Georgia, Louisiana and Nebraska, has worked for the past four years to improve Latino immigrants' access to formal banking services.

• Texas Appleseed remains an active partner in state efforts to reach underserved communities, including the FDIC’s Alliance for Economic Inclusion and the Texas Asset Building Coalition.

• Nationally, Appleseed has distributed nearly 500,000 copies of its financial education brochure series (English and Spanish), with more over 100,000 distributed in Texas.

• Appleseed launched the “Fair Exchange” pilot in April 2007 to test a market-based approach to expanding consumer disclosures in remittance transactions.

• On the policy front, Texas Appleseed continues to fight efforts to tax international remittances. We support use of consular identification cards that meet USA PATRIOT Act standards as identification to open a bank account and promote alternatives to predatory payday loans in Texas.

Funders & Pro Bono Partners

We are grateful to the Annie E. Casey Foundation, Ford Foundation, Center for Financial Services Innovation, Levi Strauss Foundation, and Austin Community Foundation for funding this work.

These projects would not have been possible without the efforts of our pro bono partners: Akin Gump Strauss Hauer & Feld LLP; Cravath, Swaine & Moore, LLP; Shearman & Sterling; White & Case LLP; Vinson & Elkins LLP; and DLA Piper.

2007 Major Accomplishments

• Texas Appleseed’s immigrant financial access work is now gaining international attention. In November 2007, Texas Appleseed addressed an international conference in Benin on how migrant remittances can be better leveraged to support microfinance and development in the Global South. Appleseed also was invited to Luxembourg to make a presentation during European Microfinance Week.

• Appleseed launched the “Fair Exchange” pilot, a market-based program to improve transparency in international remittance transactions. In May 2007, Appleseed was invited to testify on before a subcommittee of the U.S House Committee on Financial Services on the need for greater remittance disclosures.

• Texas Appleseed successfully opposed state legislative efforts to tax international remittances last session. Such a tax would place an additional tax burden on individuals who already pay state sales and property taxes. It also provides a disincentive for people who send remittances to participate in formal financial services, which hurts our national security.

• Texas Appleseed collaborated on a survey of Texas community banks aimed at assessing their level of interest in serving immigrant communities. In 2004, only 30 percent of surveyed community banks in Texas were reaching out to Spanish-speaking immigrants. Three years later, 60 percent of the banks surveyed are actively serving immigrant communities.

Reports & Publications

Banking in a Global Market Report:

Executive Summary
Full Report
Report Supplement

Financial Education Brochures

	"Opening a Deposit Account for Foreign Nationals" Texas Appleseed, 2004
	Evolving Financial Services Markets: Recent Trends in Reaching Mexican Immigrants Texas Appleseed, 2004 - 2006
	Banking Immigrant Communities: A Toolkit for Banks and Credit Unions Texas Appleseed, 2006
	Expanding Immigrant Access to Mainstream Financial Services Appleseed, 2006
	Expanding and Improving Financial Services for Low- and Moderate-Income Immigrant Communities: Next Steps Appleseed, 2006
	Building Texas Communities Texas Appleseed, 2005.
	Full Report: Study of US-Mexico Remittance Market Appleseed, 2005
	Summary: Study of US-Mexico Remittance Market Appleseed, 2005
	Meeting the Financial Service Needs of Mexican Immigrants Texas Appleseed, 2004.
	Immigrant Financial Services: Guide for Non-profits Texas Appleseed, 2004.
	Qualitative Study of the Banking Experiences of Latino Immigrants in Texas Texas Appleseed and The Texas Credit Union League, 2004.

Media Coverage

"Guidebook Helps Banks Tap into Booming Immigrant Remittance Market"

San Francisco Chronicle, January 8, 2008

 "George: Texans Paying a High Price for Payday Lending"

Jim George in The Austin American Statesman, April 12, 2007

 

 "US Banks Find Customers in Mexican Consulate"

Texas Appleseed in Houston Chronicle, December 10, 2006

 

"Hip-hop mogul preaches financial savvy"

Texas Appleseed in The Dallas Morning News, November 6, 2006

“Bankers Come Calling On Hispanic Leaders” 

The Austin American Statesman, March 21, 2004

“U.S. Payday Is Something To Write Home About” 

The Austin American Statesman, December 14, 2003

“New Regulations Affect Foreign Money Transfers” 

Ann Baddour in The Dallas Morning News, September 9, 2003

You Can't Argue With Numbers  

 

Links

Immigrant Access to Financial Institutions Project Description  

 

Remittance Disclosure Bill - Texas House Bill 109, Year 2003

Photo Gallery