By De'Stani Clark for the Arkansas Delta Informer.
Broadcast version by Freda Ross for Arkansas News Service reporting for The Arkansas Delta Informer-Winthrop Rockefeller Foundation-Public News Service Collaboration.

Whether to avoid germs or forgo uncomfortable conversations about finances, underbanked Arkansas families are finding new ways to access their money post-COVID-19.

For Heavenly Zachery of Prescott, Ark., "it was a little bit of both," she expressed. "There was maybe one conversation in high school about banks, and I hadn't heard of many positive experiences," said Zachery. However, the prospect of a new job and her mother's determination to follow all COVID-19 precautions encouraged Heavenly to broaden her banking knowledge.

With the guidance of her grandfather, Ronnie Nolan, Heavenly ventured into one of the few local banks in the small southwest Arkansas town to create her first checking account.

"I'll say taking him to the bank with me made the experience ten times better than it probably would have been if I had gone by myself," said Zachery. "Especially as I am a young Black female going into a bank."

Heavenly isn't the first young adult or Black female to be wary of traditional banks that offer checking and savings accounts and access to financial services. According to the "FDIC's 2021 Survey of the Unbanked and Underbanked," after minimum balance requirements, "Don't trust banks" was the second-most cited reason for not having an account in 2021, and "Avoiding a bank gives more privacy" was the third-most cited reason.

These sentiments are prominent in Black and brown communities. The FDIC emphasizes inadequate access to financial services pushes the unbanked to use high-cost alternatives for their transactional needs.

These alternatives can hinder access to credit when households need it, adversely affecting the financial health, educational opportunities, and welfare of unbanked households and increasing economic inequality.

Thanks to the introduction of new digital products and government benefits, Asset Limited Income Constrained Employed (ALICE), families and individuals in Arkansas and across the U.S. have been incentivized to participate in the mainstream financial sector. This has led to a significant decrease in the number of unbanked and underbanked households from 2019 to 2023, a trend set to continue.

Digital Banking in the New Era

Professionals in the industry have acknowledged this as a remarkable feat throughout the nation and Arkansas. However, as we look forward, under the 2024 FDIC Economic Inclusion Strategic Plan, a comprehensive roadmap has been laid out to advance financial equity and inclusion further. The report concluded that the country has crossed a checkpoint toward financial equity but has yet to finish.

For example, after moving to Northwest Arkansas, where diversity is slim, and it was "easier to just Google a question" than ask a local teller, Heavenly is solely now a digital banking and "neobank" consumer.

"I am 100% an online banker. It's mainly for accessibility-better 24-hour customer service, fewer unexpected fees and restrictions, automated savings options, and no need to go into a bank," she said. Similar trends have led some to question if consumers are sacrificing healthy relationships with bank service providers for much-needed convenience.

Banked households use nonbank online payment services such as PayPal, Venmo, Chime, and Cash App to complement banking products. These digital platforms allow you to send and receive money, pay bills, and manage your finances online. On the other hand, ALICE underbanked and unbanked households may use them as substitutes for traditional banking or other financial services.

The FDIC analysis also found that special efforts are needed to ensure expanded access to financial services for ALICE consumers, consumers of color, and other underserved groups, such as households led by working-age individuals with disabilities, single-parent families, and consumers with fewer years of formal education.

As the industry navigates this new era, the strategic plan highlights key opportunity areas, such as establishing an on-ramp to the U.S. financial system and aiding access to consumer credit to manage ongoing and emergency expenses better. It also encourages fostering household wealth through investments, bank lending, and other services that support strong and healthy communities, including ALICE households, low- and moderate-income (LMI) neighborhoods, and other underserved groups.

"Promoting economic inclusion among these populations requires understanding their financial needs and challenges," states the 2021 FDIC Survey of Unbanked and Underbanked Households.

In the face of these challenges Arkansans can be inspired by iInitiatives like BankOn Arkansas+ and the Arkansas Women's Business Fund. These organizations are not just about creating accounts; they are about empowering individuals like Heavenly Zachery, cultivating inspiring hope for a brighter financial future.

Alliances for ALICE

According to recent data from United for Alice, a national nonprofit that advocates for ALICE households, financial hardship for such individuals and families in the Natural State has been steadily growing since the end of the Great Recession. Since the pandemic, 47% of the ALICE households across the state that live below the federal poverty line are struggling financially with little access to sound banking tools.

In response to the financial threats unbanked and underbanked consumers face, Arkansas bankers and a coalition of nonprofit organizations founded BankOn Arkansas+. The Arkansas Asset Funders Network (AR AFN) first seeded BankOn Arkansas+ in 2018. The initiative aligns with AR AFN's mission to advance equitable wealth-building and economic mobility. These relationships give access to additional financial literacy, investment opportunities, credit management, and overall economic stability.

'You can't budget yourself out of poverty,' asserted Shamim Okolloh, a resident of Little Rock. Her family's journey from being ALICE to climbing to executive ranks at Encore Bank and a published author of Ella the Banker is a testament to the transformative power of financial inclusion initiatives. Her story is a beacon of hope for many others in similar situations.

"I was ALICE," stated Okolloh, now vice president of community outreach at Encore. "It wasn't that I was bad with money; my income was just limited." About five years ago, Okolloh and the statewide food pantry met with the Little Rock branch of the Federal Reserve Bank, increasing her interest in the local financial sector.

From that experience, Shamim became a channel partner for what is now BankOn Arkansas+. "I remember walking into the room, and multiple banks were at the table. It was my first time. We often think banks are super competitive, but it was great to see that collaboration," said Okolloh.

Okolloh was empowered to enact financial literacy for AFB locations across the state after that meeting. "There is not a lot of trust in certain communities with banking, for good reason," she said.

As part of the plus on BankOn+, the AFB was one of the trusted spaces. Many people coming to food pantries across the state typically have some financial need tied to experiencing food insecurity.

"About 40% of the people-visiting AFB-were working, and something happened. Their tire went out, a partner or someone lost a job, or there was this one big financial misstep that led them to seek alternative ways to feed their families," explained Okolloh.

Financial stability is not just about access to resources; it's about education. Shamim's journey is a perfect example. She credits additional financial education with helping her purchase her first home in 2017. This highlights the life-changing power of financial literacy and instills optimism about its potential for improving economic health.

The Arkansas banker attended a homebuyer's class and was informed about down payment assistance. She needed a total of $1000 out-of-pocket cost for inspection and appraisal. It wasn't until her son was in a grant-funded preschool that she could save an additional $700. "If somebody hadn't told me about this homebuyer's class, I would probably still be a renter."

Extending Resources and Building Relationships

Various institutions offer resources that promote financial wellness; however, additional hurdles remain as institutions debate how to extend these resources within diverse communities. As the industry promotes necessary access, new bank consumers primarily use digital products, and a quarter use online neobanks, causing a gap between the business and consumer.

"If the children use Cash App, they're not calling me-the banker. The relationship is not there whenever they need to make a purchase, such as a home or business. So, we ask ourselves how we can change the narrative to a warm and welcoming bank and industry. And then how do we hold the banking industry accountable, to be warm and open- providing belonging, equity, and opportunities," shares Shamim.

BankOn Arkansas+ Director Kara Wilkins strives to address those same questions. "Digital inclusion means using technology to support all aspects of financial well-being, including developing strategies that build inclusive pathways into banking and improve access to capital and credit for entrepreneurs," she said.

Over the past five years, the BankOn Arkansas+ coalition has brought together financial institutions, nonprofit organizations, and other leaders from across the state. They aim to help provide access to bank accounts and advocate and support recommendations for long-term systemic financial stability policies, creating these 'safe spaces.'

Recently, Forbes listed Arkansas as the fourth-best state for banking access. That is in no small part thanks to the tireless efforts of the BankOn Arkansas+ coalition, including their financial institution partners. Community leaders promote certified BankOn accounts within the communities they serve, and in turn, financial institutions can recommend wrap-around services that community partners provide to the account holders. Because of their hard work, Arkansas can take pride in reducing the number of unbanked households from 7.9% to 3.4%.

"Equity and economic justice are core pillars of Arkansas AFN and BankOn Arkansas+," said Kara. She explains that their access to capital work recognizes that small business owners- particularly women of color- face significant roadblocks in accessing capital from banks and other traditional sources.

These challenges led to the launch of the Arkansas Women's Business Fund, which re-envisions a robust small business capital infrastructure, providing more patient and flexible products directed to diverse entrepreneurs. BankOn Arkansas+ financial institutions played a critical role in helping to design the new product, hoping it would lead to better outcomes for those without a banking relationship or those hesitant to approach lenders.

Inspiring the Next Generation

The efforts of Wilkins, Okolloh, and their counterparts are starting to impact aspiring young consumers like Heavenly. Okolloh recently published her first book, Ella the Banker, co-written with her son, Liam. The book spotlights the Encore banker' daughter, Ella, a first grader who also wants to be just like her mom. This encouraging and fun book can now be purchased locally at Pyramid Arts, Books, and Custom Framing and is available nationally online at Amazon, Walmart.com, and BarnesandNoble.com.

Economics Arkansas recently purchased over 500 copies to distribute to every elementary school in the state, thanks to partners like the U.S. Bank, Encore Bank, First Community Bank, and the Arkansas Women's Business Fund.

"We can hopefully change the narrative and relationships with (banks) and explain better what banks do beyond just giving money, counting money, and saving money..." said Shamim. "ALICE individuals can bloom and belong." By working together, we can build a more inclusive financial system that empowers all Arkansans to achieve economic stability and prosperity.


De'Stani Clark wrote this article for the Arkansas Delta Informer.


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More than 80,000 Wyoming workers would benefit from an increased minimum wage, according to a new report.

Wyoming is one of 16 states where employers are required to pay only the federal minimum wage of $7.25 cents an hour. A pay bump to $17 an hour would boost the pay for more than 27% of Wyoming's workforce, according to Oxfam America.

Income needs vary across the state. According to the Wyoming Women's Foundation, a self-sufficient wage for one adult with one preschooler ranges from a high of $36 an hour in Teton County to $21 in Goshen County.

Alex Shannon, communications and event coordinator for the foundation, said the minimum wage does not meet the self-sufficiency threshold in any county.

"Even working full-time, earning the 2024 federal minimum wage of $7.25 per hour is not enough to meet the standard anywhere in Wyoming," Shannon pointed out. "For any family composition, including a single adult with no children."

A proposed Wyoming House bill in 2021 which would have raised the state's hourly minimum wage to $15 was never considered for introduction. Opponents argued it would hurt small businesses and lead to layoffs.

Shannon pointed out the cost of child care is a particular challenge for workers with low pay rates. For families with young children, she added, housing and child care costs can account for as much as half of the family's budget.

"Reducing costs for workers, such as child care assistance, food benefits and federal Earned Income Tax (Credit) really are going to offer sustainability and resources on the journey to becoming self-sufficient," Shannon contended

The Oxfam report also showed a significant pay gap in Wyoming by gender. More than one-third of women make less than $17 per hour, while roughly one-fifth of men fall into the same bracket.


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Tenant's rights groups are asking policymakers to move on several fronts to rein in corporate landlords who they said are worsening California's housing crisis.

Advocates said after the private equity firm Blackstone bought 5,600 apartments in the San Diego area in 2021, the company began squeezing out tenants in order to aggressively raise rents.

Amy Schur, campaign director for the Alliance of Californians for Community Empowerment, works with a tenant group called the Blackstone Tenants Union.

"Reports have shown that they when able to, let's say a tenant moves out, they are raising rents as much as 40%, 50% for the next tenant," Schur pointed out. "In other words, this housing is progressively becoming less and less affordable in their hands. And worse, we're now starting to see more evictions that are absolutely unreasonable evictions."

Blackstone did not respond to a request for comment but has said in the past it has spent $100 million to upgrade its properties and claims the average rents there are 20% below market rate.

The San Diego County Board of Supervisors recently passed a motion to look into an ordinance to limit how many single-family residential properties an institutional investor or corporate landlord can own. Three similar bills failed to advance this year in the state Legislature.

At the federal level, the Stop Wall Street Looting Act, which will be reintroduced this fall, would reform the economics of private equity.

Caroline Nagy, national senior policy counsel for the nonprofit Americans for Financial Reform, noted several members of Congress have accepted thousands of dollars in contributions from Blackstone employees during this election cycle, including Rep. Mike Garcia, R-Calif., Rep. Michelle Steel, R-Calif., Rep. Ken Calvert, R-Calif., Rep. Young Kim, R-Calif., Rep. David Valadao, R-Calif., and Rep. John Duarte, R-Calif.

"We know that the corporate landlord lobby is spending their tenants' hard-earned rent payments and junk fees, lobbying elected officials against tenant interests," Nagy asserted.

This fall, California voters will consider Proposition 33, which would repeal certain limits on local rent-control ordinances. In addition, President Joe Biden recently asked Congress to give corporate landlords a choice to either cap rent increases on existing units at 5% per year or risk losing federal tax breaks.

More than 130,000 New Hampshire workers would benefit from a raise in the federal minimum wage, according to a new report.

It includes the more than 20% of women in the state earning less than $17 per hour, who make up the bulk of the state's child care and elder care workforce.

Kaitlyn Henderson, senior researcher for the nonprofit Oxfam America, said Black and Latina women in particular are filling vital roles in the care industry, yet struggle to care for their own families on substandard pay.

"There is an opportunity for us to not only invest more in those industries but also to increase the wages of these workers who are doing some of the most essential work that there is in our economy," Henderson contended.

Henderson pointed out the overwhelming majority of low-wage earners are adults over age 20, and a significant number are single parents. New Hampshire remains the only state in New England to follow the federal minimum wage of $7.25 an hour.

Advocates for workers are backing federal legislation known as the Raise the Wage Act, which calls for increasing the minimum wage to $17 per hour by 2028. The measure would also phase out the subminimum wage of $2.13 for tipped workers, ensuring consistent pay without eliminating tips. Henderson added exclusions to the minimum wage for teens, farmworkers and people with disabilities would be eliminated.

"The Raise the Wage Act does a variety of things that would go a really long way to investing in the workers in our communities and really helping the economy, at the end of the day," Henderson emphasized.

The measure was introduced by Sen. Bernie Sanders, I-Vermont, and has more than 30 co-sponsors but does not include members of New Hampshire's congressional delegation. Supporters of the bill noted if the minimum wage had increased with productivity over the past 50 years, it would be $23 per hour today.


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