Banking for Underserved Communities: Expanding Access for the Underbanked
A look at how financial inclusion, community banking and accessible digital banking tools help expand banking access for underbanked individuals and small businesses across the Midwest.
Across the Midwest, expanding banking for underserved communities requires simple, reliable banking tools. These tools include easy-to-use digital banking solutions, clear financial education resources and local programs that support neighborhoods that have historically faced more barriers to traditional financial services.
These efforts strengthen families, small businesses and the wider local economy. By providing more people access to secure financial tools, both individuals and communities benefit.
How community banking supports financial inclusion
Making progress with financial inclusion starts with meeting people where they are. Community banking focuses on accessibility, personal guidance and the financial tools that match the specific needs of each neighborhood. There are several key elements that drive meaningful financial inclusion:
1. Local branches and community relationships
In many underserved areas, a local branch plays a vital role in supporting customers who prefer face-to-face conversations. Local teams can help individuals open accounts, explore savings options and best understand how to use banking tools confidently. These relationships support long-term financial stability and create a welcoming entry point for those new to banking.
2. Affordable banking options
Straightforward accounts, clear information and low-cost services help make affordable banking more accessible. Access to affordable banking options can reduce reliance on high-fee alternatives and give customers a foundation for secure everyday money management.
3. Digital banking tools that remove physical barriers
Digital tools expand access for people who may not live near a branch or may not be able to regularly visit their branch. With online and mobile banking options, customers can more easily:
- Deposit checks
- Pay bills
- Track spending
- Transfer money
- Manage small-business finances
These banking tools help to create flexibility for individuals, families and entrepreneurs who need convenient ways to manage their finances on an everyday basis.
Community investment that strengthens neighborhoods
Community development is an important part of expanding banking access to underserved communities. Investments in housing, small business growth and neighborhood services help create stability and opportunity.
A few examples of community-focused support include:
Affordable housing and small-business development
Programs like the Community Reinvestment Act (CRA) help to provide access to financial support to promote affordable housing and small-business development across Wisconsin, Illinois, Minnesota and Missouri. These investments encourage economic growth and support the long-term health of local neighborhoods.
Community grants
Charitable community grants help nonprofits deliver essential services, including financial education, housing support and small-business assistance. These organizations play a vital role in expanding access for underbanked residents and helping families build stronger financial foundations by focusing on affordable housing, small business development, workforce development, sustainability and economic empowerment.
Volunteerism and local engagement
Local banks will often support regional organizations through volunteer work, community programs and financial education events. These efforts extend banking resources beyond branches, create approachable pathways for individuals to enter the financial system and more generally help to improve the overall community.
Small business support that builds economic stability
Small businesses are a core part of every community, and many face added challenges when access to capital or financial guidance is limited. Reliable small business support, both through tools and guidance, can help owners better manage their cash flow, invest in growth and navigate difficult financial decisions.
Community banking can help to support entrepreneurs through these services:
- Business checking and savings options
- Digital tools for expense tracking and payments
- Lending programs that help expand operations
- Connections with local resources and community partners
- Small business financing through loans and lines of credit
- Account management and merchant services
- Health savings accounts (HSAs) and employee benefits
By improving financial inclusion for small businesses, communities see stronger job creation, more local investment and long-term economic resilience.
Financial education resources that build confidence
Financial education is another important part of helping underbanked individuals feel confident when managing their money. Clear, accessible information about budgeting, credit building and saving can make a meaningful difference for anyone unfamiliar with traditional banking terms or skills.
Online tools and knowledge hubs, education workshops and community programs provide simple guidance that customers can use immediately, in turn helping them take their next step with confidence.
Looking ahead: expanding access, strengthening communities
Improving access to financial services is a continual effort. Through a combination of digital tools, local branches, community investment and financial education resources, financial institutions can better close gaps for underbanked individuals and small businesses.
When banking is simple, affordable and accessible, more people can build stability, plan ahead and participate fully in their local economy.
Explore banking tools that support your goals. Connect with a financial professional to get started.
Banking for Underserved Communities Frequently Asked Questions
What does “underbanked” mean?
Underbanked individuals have a bank account but still rely on non-bank services for financial needs like check cashing or short-term loans.
How does community banking support underserved communities?
Community banking improves access through local branches, digital tools, financial education and investments in small businesses and housing.
What tools help expand banking access?
Mobile deposits, online bill pay, digital transfers and account monitoring allow customers to manage money wherever they are.
How do grants support financial inclusion?
Community grants help nonprofits deliver essential services, including financial education and small-business resources that support underbanked neighborhoods.
How does small business support strengthen communities?
Access to financial tools and credit helps entrepreneurs grow, creating jobs and improving economic stability.
For Informational/Educational Purposes Only: The opinions expressed may differ from other employees and departments of Associated Bank N.A., or any bank or affiliate. Opinions and strategies described may not be appropriate for everyone and are not intended as specific advice/recommendation for any individual. You should carefully consider your needs and objectives before making any decisions and consult the appropriate professional(s). Outlooks and past performance are not guarantees of future results. (1513)