community
THE MICHIGAN CHRONICLE December 23-29, 2009 Page B-3
Don’t borrow trouble:
a call to action
By Deborah L. Jones
Detroit metro area
cited for ‘unbanked’
and ‘underbanked’ statistics
Specs Howard honored
Earlier this month, the Federal Deposit In-
In a recent program, longtime businessman, broadcaster and educator Specs Howard was
surance Corporation (FDIC), a regulatory agency
honored on Dec. 9 at the Oakland County board meeting for his 62-year career in broadcasting.
of Congress, released its “National Survey on
Unbanked and Unbanked Households in the
Specs Howard School of Media Arts will celebrate 40 years of operation in January 2010. Pic-
U.S.”
tured (from left) are Oakland County Commissioners Helaine Zack and Eric Coleman, honoree
Specs Howard and Commissioner Janet Jackson.
The “unbanked” population includes house-
holds that do not have a savings or checking
account with a traditional financial institution
AGENT SPOTLIGHT
such as a bank or credit union.
The “underbanked” population may have a
checking or savings account, but use alterna-
tive financial services such as non-bank money
orders and check cashing services, payday
Deborah L. Jones
loans, tax refund anticipation loans, pawn
report, one major reason is that many Afri-
shops and rent-to-own agreements.
can-American communities are overwhelmed
with non-traditional financial services such as
The FDIC survey was conducted in part to
check cashing stores, pawn shops and payday
comply with a mandate that requires ongoing
lending outlets. Their report shows that there
surveys of banks regarding their efforts to serve
is a significant need for banks to provide equi-
the unbanked population. The survey exam-
table access to unbanked African-Americans.
ined the number of households in the United
States that do not have checking or savings ac-
Do banks want the
counts, as well as the number of households
that have a checking or savings account but
unbanked customer?
use other alternative financial services.
Recently in a meeting, I asked a group of De-
The results are
troiters why they went to check cashing stores
rather than a traditional bank.
not surprising
Some said, “Because the corner store is
Nationally, the study found that 7.7 percent
convenient to where I live.” Another stated,
of the population is unbanked, and a further
“Because they don’t hassle me to have a mini-
17.9 percent are underbanked. The study also
mum amount in my account before they’ll cash
found a high disparity between racial groups:
my paycheck.” Still another said, “I don’t feel
finding 21.7 percent of Black, 19.3 percent of
banks care about me. The guy at the corner
Hispanic and 15.6 percent of American Indian/
store treats me like we’re family.”
Alaska Native households to be unbanked com-
One consumer just flat out said, “I don’t
pared to 3.5 percent of Asian and 3.3 percent of
trust banks. They say they want my business,
Agent Kenya Wells Agent Brenda Brown
White households.
but I don’t feel they really want customers who
Although the Detroit Metropolitan Statisti-
can’t keep a lot of money in their bank. They
13318 E. Jefferson 26561 W. 12 Mile Rd., Ste. 203
cal Area of unbanked households is roughly 2
really only want the rich folk.”
Detroit, MI 48215-2719 Southfield, MI 48034-5694
percent higher than the national average at 9.9
Well, this small group truly represented the
percent, the racial disparities are significant.
general findings of the FDIC survey. The FDIC
Office Hours:
Second only to St. Louis, a whopping 30.0
survey found that while most banks are aware
Nearby Landmark:
percent of African-American households in
that their market areas include significant un-
Mon.-Fri., 9 a.m. to 5 p.m. Northeast side of 12 Mile Rd., next to Rite Aid
the metro Detroit region are unbanked, com-
banked and underbanked populations, relative-
Saturdays and Evenings by Appointment pharmacy in rear building with red awnings
pared to 3.9 percent of White households – and
ly few have made it a strategic priority to target
35.6 percent of African-American households
these market segments.
Phone: (313) 822-5948 Office Hours: are underbanked compared to 13.2 percent of
In addition, the report states that while a
Mon.-Fri., 9 a.m. to 5 p.m. Whites. (Statistical information for Hispanics number of banks are trying to reach the un-
About Kenya…. Saturdays and Evenings by Appointment
was not provided.)
banked and underbanked, relatively few banks
Phone: (248) 353-2260 In layman terms, this means that out of
participate in the types of outreach that are
• California State University, Bakersfield every 100 households in the Detroit Metro-
thought to be particularly effective.
• Detroit Area Pre-Engineering Alumni About Brenda…
politan Statistical Area, 30 African-American
In the coming months, the Detroit Alliance
• Member, Charles H. Wright Museum of
households are unbanked compared to four
for Fair Banking will be conducting a survey of
African American History • State University of New York, BBA
White households, and 36 African-American
your banking and lending needs. In the mean-
households are underbanked compared to 13
• Member, Perfecting Church • Atlanta University, MBA
while, we want to here from you. Email us at
white households.
inquires-comments@detroitalliance.org or
• Member, NAACP • State Farm Agent since 1994
The question is why?
you can mail your comments to the Detroit Al-
•
www.kenyawells.com • Legion of Honor Qualifier liance for Fair Banking, 76 Lothrop, Detroit,
• Life Honor Qualifier
While many reasons are listed in their
MI 48202.
Driving in
a winter
wonderland.
Wishing you a safe and joyous holiday.
Like a good neighbor, State Farm is there
®
.
Dwight E V Jones, Agent Brenda Brown, Agent James H Martin Ins Agcy Inc Eric D Huffman Ins Agcy Inc Angie Mapp CLU, Agent John Cash, Agent Gayle Coleman, Agent Yolanda N Durfield, Agent
29706 Grand River Ave 26561 W 12 Mile Rd James H Martin, Agent Eric D Huffman, Agent 417 E 4th St 19203 Grand River Ave 29230 Ryan Rd 4211 W Thirteen Mile Rd
Farmington Hills, MI 48336 Southfield, MI 48034 13650 W. 8 Mile Rd 3031 W. Grand Blvd., Ste 568 Royal Oak, MI 48067 Detroit, MI 48223 Warren, MI 48092 Royal Oak, MI 48073
Bus: 248-476-0030 Bus: 248-353-2260 Oak Park, MI 48237 Detroit, MI 48202 Bus: 248-398-2222 Bus: 313-537-1200 Bus: 586-751-5590 Bus: 248-655-2248
Bus: 248-399-6260 Bus: 313-875-3172
Julie Epps, Agent Ivy Fields-Releford, Agent Jennie C Flowers Ins Agcy Inc Alisa O Green Ins Agcy Inc Eugene Hawkins III, Agent Charlotte Knight, Agent John Little, Agent Beverly Lochard, Agent
8090 Wiloray Ave 2925 Walton Blvd Jennie Flowers, Agent Alisa O Green, Agent 577 E. Walton Blvd 7100 W Seven Mile Rd 23221 Plymouth Rd 16704 15 Mile Rd
Shelby Township, MI 48317 Rochester Hills, MI 48309 8322 Cooley Lake Rd 29610 Southfield Rd Pontiac, MI 48340 Detroit, MI 48221 Detroit, MI 48239 Fraser, MI 48026
Bus: 586-739-2367 Bus: 248-375-0510 Commerce Township, MI 48382 Southfield, MI 48076 Bus: 248-377-1776 Bus: 313-340-9000 Bus: 313-535-1100 Bus: 586-296-1616
Bus: 248-363-4747 Bus: 248-559-0000
Tony Massey, Agent Glenda McGuire Ins Agcy Inc Shirley Redrick ChFC CLU CPCU, Agent Dolapo T Shodipo, Agent Michelle Sims Ins Agcy Inc Vev Tripp Insurance & Financial Services Inc Kenya Wells, Agent
15 E Kirby St Glenda McGuire, Agent 2140 Washtenaw Rd 9005 Joseph Campau St Michelle Sims, Agent Vev Tripp, Agent 13318 E Jefferson
Detroit, MI 48202 26600 Gratiot Ave. Ypsilanti, MI 48197 Hamtramck, MI 48212 2785 South Fort 24530 Gratiot Ave Detroit, MI 48215
Bus: 313-873-3334 Roseville, MI 48066 Bus: 734-482-6570 Bus: 313-875-1955 Detroit, MI 48217 Eastpointe, MI 48021 Bus: 313-822-KW4U
Bus: 586-771-4050 Bus: 313-928-1348 Bus: 586-772-7474
0901012
State Farm, Home Office, Bloomington, IL
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