During visits to bank branches in California this year, Spanish-speaking canvassers who tried to talk to a staffer about opening an account were more likely than their English-speaking counterparts to get turned away, according to a new report.
The report, published Thursday, also found that people of color were less likely than whites to meet with success during visits to branches in five heavily populated counties.
The Roosevelt Institute, the progressive think tank that published the research, is using the findings to make a case for public banking. Last week,
"The failure of the banking industry to meet all people's banking needs, especially those of lower-income consumers and communities of color, indicates the need for more affordable and accessible options," the report stated.
The findings were based on visits by canvassers to 106 branches, mostly operated by big banks, in greater Los Angeles, the Bay Area, San Diego County and Sacramento County. The canvassers asked to speak to a banker, and about 75% of them were able to do so.
But among canvassers who were Black, Latino or biracial, 30% got turned away, compared with only 4% of white canvassers. Meanwhile, 37% of canvassers who were Spanish speakers were unable to talk to a banker about account options, compared with 15% of English speakers.
When the canvassers got turned away, bank employees provided a number of reasons. Some told visitors that they needed to make an appointment, while others said that the staff was too busy, or that all relevant information could be found on the bank's website.
Those explanations seem reasonable on paper, but in conjunction with the aggregate disparities encountered by the canvassers, they point to a systemic problem, said Emily DiVito, the report's author.
"A lot of the reasons given were suggestive of an implicit bias rather than overt discrimination," said DiVito, senior program manager for the corporate power program at Roosevelt.
"And anecdotally, the canvassers who were turned away reported feeling unwelcome," DiVito said. "That means a lot to a prospective customer. It means they're probably not going to come back."
When the canvassers asked to talk about account options, they found more success at some big banks than others. Visits to Bank of America branches had a 90% completion rate, compared with 75% at JPMorgan Chase branches and 71% at Wells Fargo branches, according to the report.
Spokespeople for Bank of America and JPMorgan Chase did not provide comment Thursday.
A Wells Fargo spokesperson said in an email: "We are disappointed to hear anytime a customer feels that their branch experience was below expectations. We seek to serve all customers in a manner that reflects the diverse communities we support, and we've built products and services that are designed to meet each customer's unique needs, whether that's lower fee checking accounts like Clear Access Banking or non-English language capabilities."
Paulina Gonzalez-Brito, executive director of the California Reinvestment Coalition, said that the report's findings illustrate some of the barriers that prevent people in communities of color from accessing the banking system.
"They're often being told that they have to make an appointment, which is a barrier," Gonzalez-Brito said.
Democratic Gov. Gavin Newsom signed legislation that establishes a commission to analyze the possibility of offering federally insured, fee-free bank accounts.
Gonzalez-Brito is one of nine members of the commission — established under legislation signed last October by Democratic Gov. Gavin Newsom — that is charged with exploring the possibility of establishing a federally insured, fee-free account. The law drew opposition from banking industry officials, who have called the concept of public banking both unpopular and unnecessary.
After the commission held its first meeting on Sept. 1, California State Treasurer Fiona Ma, who serves as its chair, said that it will provide evidence-based information to policymakers and the public.
"Too many Californians struggle to fully participate in our vibrant economy because they lack access to inexpensive, easily available payment solutions," Ma said in a press release.
