The Committee for Better Banks, a coalition of bank workers, community and consumer advocacy groups and labor organizations, released a study showing that new U.S. bank branches are leaving behind minority communities despite racial equality pledges.
The 14 largest U.S. consumer banks opened 4,130 new branches from January 2010 to December 2021, the group found, citing data from the Federal Deposit Insurance Corp.
Nearly two-thirds (61 percent) of new locations opened between January 2020 and December 2021 were in upper- or middle-income, predominantly white neighborhoods. Only 15 percent of new branches were opened in low- to moderate-income, majority minority communities. Upper-income minority communities accounted for only 6 percent of the new sites.
“We absolutely think it deserves more scrutiny,” said Nick Weiner, a committee organizer who was the lead researcher for the report. “Coupled with the alarming speed of branch closures during the COVID-19 pandemic, the disparities in branch openings raise critical questions about equitable access to key banking services.”
The study also mapped out openings in major U.S. cities. It found New York had the most over the 11-year period, with only 15 percent in minority or low- to moderate-income areas. Similar patterns were evident in Chicago, Boston, Dallas and Houston. In Minneapolis, no banks opened in middle- or upper-income minority neighborhoods.