Expanding Financing Inclusion to the Underbanked

 

HOPE's service area (Arkansas, Louisiana, Mississippi and Tennessee) is home to the highest rates of unbanked and underbanked households in the country. These conditions are particularly high among households of color. In Mississippi, where 37% of the population is African American, 31% of black households are unbanked compared to only 5% of white households. Research has documented the connection between having a banking relationship and acquiring assets, such as a car or home. However in Mississippi one out of three African American households do not have a checking or savings account - basic building blocks of economic security. These gaps - which are wider in the Mid South than anywhere else - are exacerbated by the fact that the Mid South is home to the highest concentration of persistently poor counties (counties where the poverty rate has exceeded 20% for three decades in a row) in the country. Here are three ways of how we're making a difference in our communities:

 

Services Since the recession, HOPE has expanded from seven to 23 underbanked locations. The following video shows how HOPE is making a difference in Utica, MS.

 

Forty-nine percent of households in Mississippi and Arkansas have only a wireless phone, making these the states with the second and third highest percentage of wireless only households in the nation. With these characteristics in mind, HOPE has made mobile banking a central component of its strategy. With its branch network as hubs, HOPE has enrolled over 3,500 members on its HOPE Mobile app - over half of whom live in high poverty communities. HOPE Mobile, which is designed to meet the needs of low-income consumers, allows HOPE to extend its services to more small and rural communities.

 

Children in families with assets are more likely to experiene higher academic achievement and graduate from high school than children in families without assets. To harness the transformative power of child savings, HOPE is partnering with schools, municipalities, nonprofits and other organizations to expand access to children's savings accounts throughout the Mid South. None of the initiatives above would be possible without the efforts of many partners, colleagues and friends.

 

We invite you to become a Friend of HOPE, and join our effort to Create Opportunity where it is Needed Most.