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Wells Fargo Launches Banking Inclusion Initiative to Help Unbanked

African Americans, Latinos, Native Americans Get Access yo Low-Cost Banking

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  On Monday, Wells Fargo announced the Banking Inclusion Initiative, a 10-year commitment to help unbanked individuals gain access to affordable, mainstream, digitally-enabled transactional accounts – a meaningful entry point to fully participating in the economy and achieving financial stability.

    The initiative will focus on reaching unbanked communities and, in particular, helping remove barriers to financial inclusion for Black and African American, Hispanic, and Native American/Alaska Native families, which account for more than half of America’s 7 million unbanked households1. It also will assist those who are underbanked or underserved – individuals who may have a bank account yet continue to use high cost, non-bank services and have similar needs.

   Wells Fargo will bring together multiple national and community stakeholders to roll out the broad-based initiative that is designed to increase access to affordable products, digital banking and financial guidance within unbanked communities. Through this initiative, Wells Fargo also will collaborate with partners to explore solutions to the credit challenges facing unbanked individuals.

    This year, the bank will work with partners to set and begin measuring a 10-year goal for reducing the number of people who are unbanked, with milestones along the way.

    According to 2019 FDIC data1, 12.2 percent of Hispanic households, 13.8% of Black households, and 16.3% of American Indian/Alaska Native households in the U.S. don’t have access to a mainstream checking account – compared with 2.5% of white and 1.7% of Asian households.

    The FDIC also reports that while these figures have been trending downward, the number of unbanked households will likely increase in the aftermath of the ongoing COVID-19 pandemic.

    “We recognize the high number of unbanked households is a complex and long-standing issue that will require gathering the best minds, ideas, products and educational resources from across our communities to bring about change,” said CEO Charlie Scharf. “Through our Initiative, we will organize our resources under one umbrella and work with a broad and diverse group of stakeholders on a sustained multi-year effort to accelerate financial inclusion in the U.S.”

    The commitment will be organized around three areas:

1. Access to Affordable Products and Digital Solutions

       Wells Fargo will deepen its existing relationships with Black-owned Minority Depository Institutions (MDIs) to support their work in the communities they serve, including outreach efforts and providing the option for their customers to withdraw cash from Wells Fargo’s ATMs and incur no Wells Fargo fees. In addition, Wells Fargo is offering access to a dedicated relationship team that will work with each MDI on financial, technological and product development strategies to help strengthen and grow their institutions.

·       In recognition that unbanked and underbanked individuals need access to short-term credit, Wells Fargo will increase funding and support to expand the Credit Builders Alliance (CBA) low-cost, credit-building consumer loan program. The organization’s CBA Fund will provide patient loan capital, capacity-building grants and technical assistance to their nonprofit lender members, enabling low-cost consumer loans for low- to moderate-income (LMI) individuals to meet short term cash needs and establish or improve their credit scores.

       Wells Fargo will increase awareness and outreach about low-cost, nooverdraft fee accounts, such as Wells Fargo’s Bank On-certified Clear Access Banking.

·       Wells Fargo will broaden its collaboration with CFE Fund and local Bank On coalitions to pilot new strategies and approaches that help overcome barriers to banking access in several markets with high concentrations of unbanked households. The program will focus on helping those who are unbanked navigate the financial system, develop an easier, more seamless path for them to open a Bank On-certified account and access services they need within mainstream banking. It will be used to identify best practices that can be applied on a national scale.

·       Wells Fargo will work closely with Fintechs that are deeply committed to helping underserved communities. For instance, Wells Fargo is among the investors in Greenwood, a digital platform for Black and Latino individuals and business owners. The bank also has started a collaboration to help the Fintech MoCaFi provide banking to unbanked individuals, starting with offering MoCaFi customers the ability to use their MoCaFi debit card at Wells Fargo ATMs without incurring fees from Wells Fargo.

2. Financial Education and Advice

·       

·       Wells Fargo is working with the Historically Black Colleges and Universities (HBCUs) Community Development Action Coalition to launch Our Money Matters, a comprehensive financial wellness initiative for college students of color, who disproportionally face greater financial challenges and college debt. The initiative aims to equip students with much needed financial capability skills and access to support services. Over the next 3 years, the program will expand to 25 HBCUs and Minority Serving Institutions.

3. Launching National Advisory Task Force

·       Recognizing the difficulty of addressing the unbanked issue in the U.S., Wells Fargo will establish and lead a broad coalition to help with this multi-year commitment. Wells Fargo is forming a National Unbanked Advisory Task Force that will work with the bank in developing solutions to bring more people into the banking system from underserved communities, while also providing feedback on the initiatives that will be implemented and helping determine the best ways to measure success. The task force will feature representatives from leading organizations, including LULAC (League of United Latin American Citizens), NAACP (National Association for the Advancement of Colored People), National Bankers Association, NCAI (National Congress of American Indians), UnidosUS, National Urban League, and Mississippi-based Hope Enterprise Corporation.

“With branches in more communities than any other financial institution, we believe we have a responsibility to do even more to help address this issue and the pandemic has increased the urgency,” said Mary Mack, CEO of Consumer and Small Business Banking at Wells Fargo. “It is why we’re launching this comprehensive initiative. It is our hope, working closely with our partners, we will be able to make a difference over time in addressing such a critical problem for our society.”

    Edith Rocío Robles is an assistant vice president for Corporate Communications.

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Business

Car Wash Workers Cope with Lingering Impacts of ICE Raids

WAVE COMMUNITY NEWSPAPERS — Hundreds of car wash workers across Southern California have been detained in federal immigration raids, leaving lingering impacts on families and communities. Mario, a 33-year U.S. resident and father of three, was arrested at a Santa Ana car wash last August and held for two months.

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LOS ANGELES — Mario relied on his job in the car wash industry to raise his three children. It was during a shift at a Santa Ana car wash last August that he was arrested by federal agents, taken to a U.S. Immigration and Customs Enforcement detention center and held for two months.

“They made me sleep on the cold floor for a week without a blanket, a toothbrush or basic medical care for the injured man next to me,” Mario, a 33-year resident of the United States, said at a news conference earlier this summer at Inglewood’s Crenshaw Imperial Car Wash, which is now closed after being raided by federal agents.

Mario, who is being identified only by his first name for safety reasons, is among hundreds of car wash workers detained across Southern California in the year since the Trump administration began an aggressive immigration crackdown in the region, according to the CLEAN Carwash Worker Center.

News of raids by masked agents has faded from the headlines, but the effects still linger for those caught in the crosshairs. Family members have been deported or left to languish in detention, and many who remain live with the fear of being hunted down by immigration officers.

At least 373 car wash workers have been detained at car washes across Southern California since the raids began last summer, according to figures compiled by CLEAN. The group’s data also shows federal agents raided or attempted to raid at least 106 car washes in communities across Los Angeles, Orange County and surrounding areas, including Inglewood, Culver City, Westchester, Bell and Whittier.

CLEAN, an advocacy group founded in 2007, has been fighting to protect car wash workers from exploitation and unsafe conditions. When the raids began last year, the group sprang into action, working around the clock to help detained workers and provide their families with legal and financial support.

“We gathered our information from workers, managers, and owners of the car washes that were being raided,” CLEAN Deputy Director Andrea Gonzalez said. “We also gathered information from rapid response teams who were on the ground responding to the raids.”

The Department of Homeland Security did not respond to a request for comment on the group’s findings.

Mario said he was one of seven workers at the Harbor Blvd Car Wash detained on the same day last August, but the only one who has been released. He said he refused to sign deportation papers and is fighting to stay in the United States, a process that has drained his family emotionally and financially.

“Being released is not the same as being free,” he said.

During Mario’s detention at the Adelanto ICE Processing Center, his wife and children struggled to cope with his sudden absence while fighting for his release, his wife Alejandra said.

“The employer gave us a video showing my husband being taken away under arrest, treated worse than a common criminal, with chains binding his legs, arms and waist,” Alejandra said. “It wasn’t right.”

The experience of a car wash worker named José was recounted at the news conference by the Rev. Andy Schwiebert of Immanuel Presbyterian Church in Los Angeles, who said agents “took him” from the La Cienega Car Wash last August.

José’s wife is a U.S. citizen, Schwiebert said, and José had a pathway to gaining citizenship before he was detained. By the time a judge ordered his release on bond, the car wash had shut down, Schwiebert said, leaving José without a job.

“These raids did not just target workers; they destabilized families, congregations, workplaces and entire communities,” Schwiebert said.

The administration’s aggressive enforcement operations have continued across the nation in the months since José’s and Mario’s detention, with ICE arrests in July surging to their highest rate so far under President Donald Trump.

Last month, ICE agents shot and killed Lorenzo Salgado Araujo, a 52-year-old father of three in Houston. Less than a week later, an immigration officer fatally shot 26-year-old Johan Sebastián Duran Guerrero in Biddeford, Maine.

Back in Inglewood, Mario said he was grateful to share his story and that, even though he was released, his experience in detention stays with him.

“I still feel frustrated and traumatized,” Mario said, “because my life is no longer the same as it used to be.”

Ernesto Ureño is a Loyola Marymount University journalism major and intern at Capital & Main, a nonprofit publication focused on inequality. It is published here with permission.

Based on reporting by Wave Community Newspapers.



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Black History

George Cook: The Inventor Who Made Fishing Smarter

George Cook was a Black American inventor from Louisville, Kentucky. He was born in 1863, during a time when Black Americans faced unfair laws, limited opportunities, and many barriers to education, jobs, and recognition. Even with these challenges, he became known for his intell

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A copy of the patent for George Cook’s Automatic Fishing Device. Public domain.

George Cook was a Black American inventor from Louisville, Kentucky. He was born in 1863, during a time when Black Americans faced unfair laws, limited opportunities, and many barriers to education, jobs, and recognition. Even with these challenges, he became known for his intelligence, honesty, and ability to think in practical ways. Some records say he worked as a cook for Buffalo Bill Cody and later as a chef on a private dining car for the Louisville and Nashville Railroad. He was even known by the nickname “Honest Mister Cook.”

As with many Black American inventors and scientists of that era, there is little biographical information about Mr. Cook.

Cook’s most famous invention was the Automatic Fishing Device. He received U.S. Patent No. 625,829 for it on May 30, 1899. His patent shows that he was not just someone with an idea, but someone who made it happen.

So, what did the Automatic Fishing Device do? Imagine fishing with a line in the water. Usually, you have to watch carefully and pull the line at just the right moment when a fish bites. Cook wanted to make that process easier. His device was designed to react when a fish pulled on the line. The tension from the fish would trigger a lever. That lever would release a spring-loaded part of the device, causing it to move quickly and help pull in the line. The device also had an alarm gong that would ring to let the fisher know something was happening.

This invention was important because it used simple mechanical ideas in a clever way. Springs, levers, rails, and alarms were not new by themselves, but Cook combined them to solve a real problem. His device showed how inventors often take familiar parts and arrange them in a new way to make life easier. 

Cook looked at fishing and asked, “How can this be improved?” Then, he created a device that could respond automatically when a fish tugged on the line. His invention let fishermen relax instead of watching the line for hours, trusting the alarm to alert them.

Cook may not be as famous as some inventors, but his Automatic Fishing Device shows that creativity and innovation can be applied anywhere. His legacy lives on as part of the larger story of Black innovation in America.

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Business

Gov. Newsom Announces $109.6 Million in Funding for 278 Supportive Homes in Bakersfield, Contra Costa, Sacramento and Fresno

POST NEWS GROUP — “Every Californian deserves a safe place to call home, particularly the veterans who bravely served our country,” said Newsom in a statement on July 23. “California voters approved Proposition 1 because they know we must do more to address homelessness and behavioral health challenges.”

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Last week, Gov. Gavin Newsom announced $109.6 million in Proposition 1 funding to create 278 permanent supportive homes in Bakersfield, Contra Costa County, Sacramento and Fresno, including 103 homes reserved for veterans experiencing or at risk of homelessness.

The funding, awarded through California’s Homekey+ program, is intended to expand permanent supportive housing and behavioral health services for veterans and other Californians experiencing or at risk of homelessness. State officials said the investment advances Proposition 1, the voter-approved measure aimed at increasing housing, treatment and support services for people with behavioral health needs.

“Every Californian deserves a safe place to call home, particularly the veterans who bravely served our country,” said Newsom in a statement on July 23. “California voters approved Proposition 1 because they know we must do more to address homelessness and behavioral health challenges.”

The largest award, nearly $32.6 million, will help the City of Fresno and Parkway Prime LLC convert an interim housing project into 84 permanent supportive homes at Parkway Terrace, including nine units reserved for veterans. The City of Sacramento and Urban Capital LLC will receive nearly $31.9 million to develop the Rio Linda Senior Housing Project, which will include 100 homes, 49 of them reserved for veterans.

Contra Costa County and Satellite Affordable Housing Associates will receive $28.8 million to develop an 82-unit senior housing community, with 62 units designated for people experiencing or at risk of homelessness who have behavioral health challenges, including 30 units for veterans. In Bakersfield, Community Action Partnership of Kern will receive nearly $14.1 million to convert a 38-room motel into 30 permanent supportive homes, with 15 units reserved for veterans.

State officials also announced an additional $2.3 million for three previously awarded Homekey+ projects in Olivehurst, Sanger and Stockton, primarily to support operating costs and increase veteran housing.

Since its launch, Homekey+ has awarded $968.4 million to 54 permanent supportive housing projects expected to create 2,749 affordable homes statewide, including 723 homes reserved for veterans. Officials said Proposition 1 is expected to expand California’s behavioral health system by funding additional supportive housing, treatment facilities and services for people experiencing homelessness and behavioral health challenges.

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