Financial Self-Sufficiency
Access to Financial Services by Race/Ethnicity, 2017





Access to Financial Services by Race/Ethnicity, 2017

What does this measure?

The percentage of households that have neither a checking nor savings account (unbanked) or have an account but instead relied on alternative financial services (underbanked) in the past 12 months.

Why is this important?

Having access to and using checking and savings accounts and other financial products can help families save money, plan for the future, and build credit. Rates of underbanked and unbanked households may indicate limited access to resources, especially in low-income communities. Without a bank account, one must pay fees for cashing checks that accumulate over time.

How is our county doing?

Access to financial services was lower among African American and Hispanic residents in Essex County than it was for white or Asian residents in 2017. Unbanked or underbanked rates in Essex were 46% for both African Americans and Hispanics compared to 22% for Asians, and 16% for whites. These were similar to disparities in the United States as a whole.

How do we compare to similar counties?

Essex County had the highest shares of unbanked or underbanked Hispanics and Asians in 2017 compared to Middlesex, Westchester NY, and Lake, IL. Its rates among African Americans and whites were similar to comparison counties.

Why do these disparities exist?

Scholars have uncovered the connections between racial disparities in access to financial services and historical and contemporary practices that disadvantage the Black community and other people of color and contribute to gaps in wealth that have compounded over generations. Policies to exclude people of color from financial systems and capital included redlining, which prevented many Black people from obtaining mortgages. Historic incidents, including the demise of the Freedman's Savings and Trust in 1874 which resulted in a $2.9 million loss for mostly Black depositors lacking federal insurance, contributed to ongoing mistrust of financial institutions. Today, there is a dearth of bank branches in some neighborhoods and people of color tend to pay more for bank products such as car loans or mortgages even when they have comparable credit ratings as white peers.

Notes about the data

Underbanked households are those that have a checking and/or a savings account but have used non-bank money orders, non-bank check-cashing services, non-bank remittances, payday loans, rent-to-own services, pawn shops or refund anticipation loans (RALs) in the past 12 months. Unbanked households have neither a checking nor savings account.


Access to Financial Services by Race/Ethnicity, 2017
AsianBlack or African AmericanHispanicHousehold of ColorWhite
Essex County, MA17%31%25%25%13%
Middlesex County, MA16%31%22%21%13%
Lake County, IL14%30%23%23%12%
Westchester County, NY14%29%23%24%11%
Massachusetts33%14%
United States18%30%29%28%14%

Source: Prosperity Now
Notes: Underbanked: Percentage of households that have a checking and/or a savings account and have used non-bank money orders, non-bank check-cashing services, non-bank remittances, payday loans, rent-to-own services, pawn shops or refund anticipation loans (RALs) in the past 12 months. Unbanked: Percentage of households with neither a checking nor savings account.




Households with Limited Financial Access by Race/Ethnicity, 2017
AsianBlack or African AmericanHispanicHousehold of ColorWhite
Essex County, MAN/AN/AN/AN/AN/A
Middlesex County, MAN/AN/AN/AN/AN/A
Lake County, ILN/AN/AN/AN/AN/A
Westchester County, NYN/AN/AN/AN/AN/A
MassachusettsN/AN/A
United StatesN/AN/AN/AN/AN/A

Source: Prosperity Now




INDICATORS TREND | ESSEX COUNTY
People 65 or Older Living Alone Decreasing
Early Prenatal Care by Mother's Race/Ethnicity Not Applicable
Prevalence of Overweight Adults Not Applicable
Preterm Births Increasing
Infant Mortality Rate Maintaining
Children with Elevated Blood Lead Levels Decreasing
Children Living in Poverty Increasing
Children Living in Poverty by Race/Ethnicity Not Applicable
Disengaged Youth Maintaining
Live Births to Teen Mothers Decreasing
Youth Arrests Decreasing
Arts, Entertainment and Recreation Establishments Maintaining
Arts, Entertainment and Recreation Employment Maintaining
Tourism Spending Increasing
Voter Participation Rate Increasing
Charitable Contributions Maintaining
Protected Land Not Applicable
Days with Good Air Quality Increasing
Beach Contamination Increasing
Daily Water Use per Resident Decreasing
Crimes Against People Maintaining
Crimes Against Property Decreasing
Drug-Related Arrests Maintaining
Reports of Domestic Violence Increasing
Incarceration Rates Decreasing
Recidivism Decreasing
Households Without Vehicles Decreasing
Means of Transportation to Work Not Applicable
Traffic Injuries and Fatalities Maintaining
Households With Internet Access Not Applicable
Change in Total Population Increasing
Change in Population by Age/Sex Not Applicable
People with Disabilities Maintaining
Households by Type Not Applicable
Single-Parent Families by Sex Not Applicable
Single-Parent Families by Race/Ethnicity Not Applicable
Change in Population by Race/Ethnicity Not Applicable
Foreign-Born Population Increasing
Language Diversity Increasing
Change in Total Jobs Increasing
Change in Jobs by Sector Not Applicable
Change in Average Salary Increasing
Change in Average Salary by Sector Not Applicable
Average Salary by Sector Not Applicable
Median Earnings by Occupation by Gender Not Applicable
People Entering/Leaving County for Work Not Applicable
Employer Size Not Applicable
Self-Employment Revenue Increasing
Business Ownership by Race/Ethnicity Not Applicable
Unemployment Rate Increasing
Unemployment Rate by Race/Ethnicity Not Applicable
Prekindergarten Participation Not Applicable
Female Enrollment in School Not Applicable
Chronically Absent Students Increasing
Per-Student Spending Increasing
Bullying Decreasing
Student Performance on Grade 3 Reading Not Applicable
Student Performance on Grade 8 Math by Student Group Not Applicable
Student Performance on Grade 10 English Language Arts Not Applicable
Student Performance on Grade 10 Math Not Applicable
High School Cohort Graduation Rate Increasing
High School Cohort Graduation Rate by Student Group Not Applicable
Education Levels of Adults Not Applicable
Bachelor's Degree or Higher by Race/Ethnicity Not Applicable
Income in Relation to Poverty Level Not Applicable
People Living in Poverty by Race/Ethnicity Not Applicable
Median Household Income Increasing
Median Household Income by Race/Ethnicity Not Applicable
Median Household Income by Household Type Not Applicable
Living Wage Rate by Household Type Not Applicable
Access to Financial Services, by Race/Ethnicity Not Applicable
Households Receiving Temporary Assistance Increasing
Households Receiving Federal Food Assistance Increasing
Participation in Food Assistance by Race/Ethnicity Not Applicable
Earned Income Tax Credit Participation Decreasing
Economically Disadvantaged Students Increasing
Median Home Value Increasing
Cost of Homeownership Increasing
Cost of Renting Increasing
Homeownership Rates Maintaining
Homeownership Rates by Race/Ethnicity Not Applicable
Homeless Persons Maintaining
People Without Health Insurance Decreasing
Medical Care Expenses Increasing
Prevalence of Children with Asthma Maintaining
Prevalence of Overweight Children Maintaining
Diabetes Incidence Decreasing
Chronic Disease Among Older Adults Increasing
Cancer Incidence Decreasing
Cancer Mortality Rate Decreasing
Heart Disease Mortality Rate Decreasing
Mortality Rate Decreasing
People who Smoke Not Applicable
Use of Illegal Drugs Not Applicable
Youth Use of Illegal Drugs Not Applicable
Substance Abuse Treatment Admissions Not Applicable
Drug Overdose Mortality Rate Increasing
Prevalence of Mental Illness Maintaining
Suicide Rate Maintaining
Children Living in Poverty by Race/Ethnicity Not Applicable
Single-Parent Families by Race/Ethnicity Not Applicable
Change in Population by Race/Ethnicity Not Applicable
Unemployment Rate by Race/Ethnicity Not Applicable
Student Performance on Grade 3 Reading Not Applicable
Student Performance on Grade 8 Math by Student Group Not Applicable
Student Performance on Grade 10 English Language Arts Not Applicable
Student Performance on Grade 10 Math Not Applicable
High School Cohort Graduation Rate by Student Group Not Applicable
Bachelor's Degree or Higher by Race/Ethnicity Not Applicable
People Living in Poverty by Race/Ethnicity Not Applicable
Median Household Income by Race/Ethnicity Not Applicable
Participation in Food Assistance by Race/Ethnicity Not Applicable
Homeownership Rates by Race/Ethnicity Not Applicable