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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By Hevin Wilkey / Broadcast version by Farah Siddiqi reporting for the Kent State NewsLab-Ohio News Connection Collaboration.

Ohio students are urging their universities to increase campus wages. Earlier this year, Ohio raised the minimum wage from $10.10 to $10.45 an hour, and it will be raised to $10.70 on Jan. 1, 2025. Some students say they need more to better support themselves.

"It would relieve a lot of stress to not have to worry about what is going to happen if you buy one too many cups of coffee that week, or if you change your Spotify subscription, or you need a new backpack and you just don't have to worry about counting the pennies in your wallet to make sure that it's something you can afford," said Nica-Emmanuel Delgado, vice president of Kent State's chapter of the Ohio Student Association.

OSA is a political student organization that advocates for accessible and affordable higher education, along with other issues of interest to college students in the state.

Not only has Delgado worked multiple on-campus jobs, the senior anthropology major also works off campus. Despite all the jobs and splitting rent with their partner, Delgado said they sometimes struggle to afford everyday necessities like gas, rent and groceries.

Efforts to raise wages for student workers at some schools have been somewhat successful. For example, in winter 2022, students at Ohio State University protested on-campus wages, demanding $15 an hour. By the start of 2024, the university decided to raise its minimum wage to $13 an hour after researching market rates and setting a goal to retain student employees.

This summer Kent State's United Students Against Sweatshops succeeded in getting the university to raise wages for resident assistants from $500 to $1,730 per semester through campaigning and meeting with administrators.

Every year MIT produces a living wage calculator for the entire United States. For Ohio, one adult with no children should make at least $19.40 an hour to live, nearly $9 above the minimum wage.

OSA's Delgado said they aren't asking for something as high as the $19 an hour livable wage, but the goal is for students to feel less stressed.

As much as students fight for livable wages, sometimes it isn't in university budgets, said Sandy Baum, higher education economist and senior fellow at the Urban Institute.

"They have to figure out where the money is going to come from and they have to make choices about how to allocate their budgets," Baum said. "I think taking all of those things into consideration is really important in terms of figuring out what the solutions are to make students better off."

She also said that universities might have to choose between lower wages for more workers or higher wages for fewer workers, ultimately increasing each employee's workload.

In United Students Against Sweatshops Kent State chapter chair Madison McCartha's opinion, the overall workload is already too intense. She has talked with various professors and Faculty Senate about the correlation between student grades and the burden of working one or several jobs. The students who are most impacted by their finances also struggle with academics.

"Students who come from better-off backgrounds or have higher paying jobs sometimes are able to allow themselves a little bit more grace to work, because if they have to miss a shift or any of these different things, it's not the end of the world for them," McCartha said. "We see that that stress really reduces your academic performance, and again, as an institution of higher learning, we want to prioritize learning."

Despite potentially lower wages, there is still a major appeal for students to work on campus.

Many campuses offer flexibility for their students' jobs based around their schedule and time of year. Universities understand that students should only work a certain number of hours to make sure they can still focus on studying while also being able to give them breaks according to the calendar. Not working during breaks or holidays is another plus for many students. And students without their own transportation don't have to travel far to work.

When McCartha worked on her campus, she was making around 40 cents more than the state minimum wage at the time, which was $10.10, and eventually switched to another campus job that paid her around $11.

She said even with the aid of the higher wages, which she appreciated, her funds were still lacking.

"Myself and my colleagues were, and some of them still are, donating plasma to make their bills and pay for food," McCartha said. "It was still not quite enough for the things that I needed at times."


This collaboration is produced in association with Media in the Public Interest and funded in part by the George Gund Foundation.


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Montana's wildland firefighters face a drastic pay cut at the end of this week without congressional action.

Nationwide, the Bipartisan Infrastructure Law made $600 million available to boost wages for more than 11,000 firefighters. The law gave Interior Department or Forest Service employees an annual raise of either $20,000 or a 50% base salary increase.

Wildland firefighters can make as little as $15 an hour doing one of the country's most dangerous jobs.

Jonathon Golden, legislative director for the advocacy group Grassroots Wildland Firefighters, described the pay raise as a game changer.

"That really sent a message and a signal to the workforce that they were acknowledged for their hard work, their dedication, their sacrifice," Golden explained. "That hard work also includes the off season when they are recovering."

Federal spending is set to expire at the end of this week. Congress could pass a continuing resolution to keep the government funded into the new year, which would cover the firefighter pay raise.

Golden's group said rather than needing biennial approval, Congress should make the federal wildland firefighting increases permanent. In addition to pay raises, more permanence would also allow crews to prepare and budget for future fire seasons, which Golden pointed out are becoming longer and more costly to fight.

"We need those preparedness budgets and the wages, salaries and expenses budgets as well to also increase," Golden urged. "Because that's the stuff that gets those firefighters out on the line, prepared and ready to go to fight the increasingly dangerous fires."

Golden and other advocates are pushing to bring federal wildland firefighter pay closer to the wages of state fire personnel, which in some cases are much higher.


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Kentucky's 33,000 state employees face challenges taking time off from work after giving birth to a child or adopting, and many are forced to use sick leave or take unpaid leave through the federal Family and Medical Leave Act because they don't have paid parental leave.

Dustin Pugel, policy director at the Kentucky Center for Economic Policy, said implementing a policy for state workers would put the Commonwealth more in line with other states, especially surrounding ones such as Ohio, already offering paid parental leave.

"Younger workers who are considering starting a family, who are also looking at other state sectors to decide where they want to work, it's really important that we attract them by offering this benefit."

Across Kentucky an increasing number of large private companies such as Norton Healthcare, along with public entities such as Louisville Metro Government and Fayette County Public Schools provide paid parental leave to employees.

Mothers who use paid parental leave have stronger bonds with their child and have better physical and mental health. Pugel added, dads also benefit from paid time off to help nurture new life.

"It's shown to increase brain activity in the part of the brain that's associated with empathy," Pugel outlined. "For kids whose parents use paid parental leave, there's a whole host of benefits as well, social, emotional, cognitive"

As of the beginning of 2024, 38 states had a paid parental leave policy for state government employees, with Kentucky remaining one of the 12 states without a policy.