The black population is much less lucky than the other part of Americans as they have low income and low chances to have access to services provided by financial institutions. According to the New America study, the small and community banks have discrimination on the fees and charges that they apply. The results of the study revealed the “institutional racism” reflecting the following urgent statistics:
- In comparison to whites the blacks, Asians, and Latino Americans being charged for checking account fees higher for about $190, $25, and $260 accordingly
- The minimum balance of the account for blacks is about $173 and for Latino Americans $231, both requirements are higher than in the case of whites
- Even the branches of the banks that are located in the white neighborhoods usually have lower overdraft fees
- The minimum amount for opening a checking account in black neighborhoods will cost you higher
In other words, the term institutional racism illustrates public mindsets or mechanisms that emanate negative conditions of viewpoint on exact group of people based on the fact of their ethnicity or race.
Nearly at the beginning of 2019, the BBVA bank that is based in Spain blocked the accounts of a hundred Chinese customers. However, the victims of racism did not accept the viewpoint of banks and organized protests in the protection of their rights. Due to the announcement of the bank, it was done in accordance with anti-money laundering regulations. However, everyone knows that it was a manifestation of institutional racism that may occur every day at any place.
Gaps of Traditional Banking
It is a proven fact that the structure of traditional banks is focused on the fact of “catching people” in a financial crisis. Everyone knows that the system of lending in traditional banking basically relies on the fact of [credit score]. However, what to do, if a great number of the population, even do not have minimal access to banking services? This phenomenon is usually known as “underserved”, otherwise stated, people are not able to use the services provided by banks because of the strict procedure of the institution or even the physical distance. In this case, people have no chance to get quick cash other than applying online for a quick payday loan. It is also a solution if you have no other way to find or borrow funds. Most online platforms (such as ours: Shinyloans.com) have already modernized the types of provided services. Nowadays, you even have no need to visit the office or try to collect the paperwork because the services are available in the online version. The most advantageous fact of online same-day loans is regarded to be the online direct lenders that may be willing to provide the funds.
Upcoming Advanced Models
Till now, many of us think that traditional lenders are the only option for getting funds and other alternative lenders are not reliable, or they offer horrible terms. However, crowdfunding and microlending projects proved that they may compete with the traditional lenders and even offer fairer terms to the customers. These “game changers” provide an opportunity to invest and gain profit in prospective projects. It also refers to “blockchain” that grants the chance to get rid of financial institutions that even may act against their own customers. Due to the thoughts of modern developers, in the near future, the system of blockchain may eliminate the traditional institutions and create a new form of service providers that will act only in favor of their customers.
Unfortunately, no one can reject the fact that racism is totally integrated into our lifestyle. But nobody has a right to think or consider that, for instance, this black guy may have fewer rights or prerogatives than the whites, just because of the color of skin or religion. Once one of the greatest comedians of all times Jim Carry says “I’m a Buddhist, I’m Christian, I’m a Muslim, I’m whatever you want me to be. It all comes down to the same thing”. Remember once and forever, we are all human beings, and we are all equal before the law.