Banking Services for Latinos

Legal Aid of East Tennessee - 020087

Abstract Number: 020087

November 2002

Legal Aid of East Tennessee (LAET) created the Banking Services for Latinos project to ensure recent Latino immigrants can access the services of commercial financial institutions. Prior to the implementation of this project, a number of barriers existed (e.g. lack of a social security number, banks had no Spanish speaking staff, etc.) for recent immigrants to conduct business. Consequently, many recent Latino immigrants in east Tennessee were vulnerable to exploitive business practices ranging from being charged exorbitant fees for international money transfers to outright theft.

LAET in conjunction with the Catholic Campaign for Human Development, facilitated a network of grassroots Community Economic Development (CED) organizations in east Tennessee. In these meetings, representatives from the Latino community discussed how many recent immigrants were financially exploited and the role banks could play to improve the situation.

From these discussions, a committee was formed and meetings began with area banks. Since LAET's CED program has been involved with bank officials for many years, LAET was able to link the new Latino Economic Task Force with the appropriate bank officials. Meetings were held with four banks during 2001 and one, SunTrust Bank, eagerly seized the opportunity. The Task Force presented five issues to the banks:

1. Opening deposit accounts for people who do not yet have a social security number;
2. Providing a low-cost method for international money transfers;
3. Hiring of Latino staff at the bank;
4. Translation of bank materials into Spanish; and
5. Advertising in Spanish language media.

SunTrust Bank fully cooperated with all of the requests made by the Latino Economic Task Force. First, other documentation than a social security number is now allowed at SunTrust Bank - identification from the consulate, a driver's license, the individual tax identification number from the IRS, etc. Even if an individual does not have a social security number or tax identification number, a non-interest bearing account can be opened. Second, a new method was devised for low-cost international money transfers. Bank customers are encouraged to open two accounts, one for personal use and the other specifically for international transfers. An ATM card is sent "home" to allow for a family member to receive money through a local bank in the home country, avoiding the high cost of Western Union and other companies. Third, the bank agreed to hire Latino staff, with one person already completing their management program. Material is already translated into Spanish, and the bank has begun advertising in media specifically targeted at the Latino community.

The "Hispanic Project", as SunTrust Bank refers to the project, is being initiated in the immediate region in East Tennessee, involving 34 bank branches. There is hope that this program will eventually spread to all SunTrust Banks throughout the United States. In August 2002, SunTrust joined with the Latino Economic Task Force and invited Fanny Mae, the Federal Reserve and nine other regional banks to a meeting to present ideas about how banks can respond to recent immigrant needs.

Contact Information:

Bill Murrah
Legal Aid of East Tennessee
502 South Gay Street, Suite 404
Knoxville, TN 37902
Phone: (865) 637-0484
Fax: (865) 525-1162
Email

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