In pandemic, poor turn to us, not the banks
Arizona is home to over 550,000 small businesses, each affected in different ways by the novel coronavirus pandemic. The recent surge in COVID-19 cases demonstrates that the virus knows no boundaries on who it affects, when it strikes and where it ultimately takes us.
For the time being, we have to be especially attentive to communities that are underserved or unserved — from broadband penetration to health care access and from access to stores serving healthy foods to banks providing financial services. Communities that do not possess proximity to these critical services risk not only being left behind, but further harm, particularly economic, during this crisis.
A critical concern is the plight of the underbanked and unbanked in our communities.
According to the 2017 FDIC annual report, nearly 1 in 4 Arizonans do not hold depository accounts at traditional financial institutions. These hard-working, taxpaying individuals either lack access to banks in their neighborhood or they choose not to participate in our traditional banking system.
And it is because of Arizona’s financial service centers that provide paydayadvance and title-loan services that these individuals can access liquidity when they need it.
While many small businesses in our state are closing their doors once again due to the pandemic, financial service centers have been deemed essential by the Arizona government.
From cashing stimulus checks to adjusting payment arrangements, the wide array of services we provide are critical to the livelihood of thousands of families in these underserved and unserved communities. Now more than ever, alongside fellow employers, our customers come first and our industry has a commitment to remain open.
Why? Because we deliver liquidity into our communities through a variety of services, including check cashing, wire services and provisioning small loans, all regulated according to federal laws and state-specific statutes that in many cases, cap our fees.
Not only that, we adhere to robust transparency and disclosure requirements, enabling us to work with our customers on individualized plans that help them make any number of ends meet with a complete understanding of their obligations.
This approach under our competitive, regulated market ensures that my customers, our neighbors, have the confidence in sound financial products and services that enable them to make the purchases they choose — be it groceries or everyday expenses incurred by their families. There is nothing more important right now than having access to money.
With 4 out of 10 Americans unable to cover a $400 emergency expense, multisuite lines of financial products and services like ours are needed now more than ever.
Our family business has been servicing this community for over two decades, providing neighborhood-based financial services during good times and bad. What I have learned from being a neighborhood business owner is that our customers want a partner in their financial decisions and support for their economic goals.
As one of the most business-friendly and stunning states to live in, Arizona will make it through these challenging times. Restaurant workers, theme park associates and other important small businesses must weather another 30day closure.
We’ve experienced the toll this pandemic has wrought in our neighborhoods and cities, but by working together, we can get back on track one day at a time. As a dedicated small business owner, I look forward to playing a small role in this recovery.