“As research extensively documents, racial disparities in wealth accumulation are systemic, of which historic public policies and private practices sustain,” said Melody Harvey, UW-Madison assistant professor of consumer science in the School of Human Ecology.
Black communities are likely to be what Harvey called “banking deserts,” meaning there are few, if any, mainstream financial institutions. They are also more likely to have concentrations of high-cost alternative financial services such as payday and auto title lenders, Harvey explained, asking “Where does one begin when even the most basic of financial services may not be readily available and accessible?”