There are fewer options for bank loans for Latinos

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The southern United States is home to diverse populations, including many rural areas that are considered “banking deserts” due to the absence of sufficient banking or credit union options for local communities.

That's according to two new reports on the financial opportunities and challenges facing southern communities, released by the Consumer Financial Protection Bureau (CFPB).

Studies indicate that about 48 million people live in the southern region examined, which includes Alabama, Arkansas, Georgia, Louisiana, Mississippi, North Carolina, South Carolina and Tennessee.

Among the “distinct demographic characteristics” found in the southern region are, for example:

  • There is a significant immigrant population that represents more than 3 million people in the region.
  • One in 10 residents in the southern region is Latino, which represents 5% of the population in rural areas and 8% in non-rural areas.

He also explains that the lack of local access to banking options makes it difficult for them to obtain competitive interest rates for mortgages, credit cards or small business loans.

Other key findings include:

  • The Southern region has fewer bank branches per person than other areas of the country (3.6 branches per 10,000 people, compared to 5 branches per 10,000 people nationally).
  • “Unbanked” rates remain high in this region, and Latino households cite barriers including: minimum balance requirements, lack of trust in banks, and not having the type of identification required by many financial institutions to open an account. .
  • Consumers in that region have more difficulty accessing credit and face higher interest rates.

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Nathan Rivera
Allow me to introduce myself. I am Nathan Rivera, a dedicated journalist who has had the privilege of writing for the online newspaper Today90. My journey in the world of journalism has been a testament to the power of dedication, integrity, and passion.

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At Today90, I continue to be a driving force behind journalistic excellence. My tireless dedication to fair and accurate reporting is an invaluable asset to the editorial team. My biography is a living testament to the importance of journalism in our society and a reminder that a dedicated journalist can make a difference in the world.