Improving Trust in Mainstream Financial Institutions in Under-Resourced Communities
In nonprofit work, we often enter communities with deep care and genuine concern. We listen to stories about barriers to stability and economic mobility—food insecurity, financial stress, health challenges, and systemic inequities. But in our desire to advocate well, we can fall into a subtle trap. We sometimes frame for-profit institutions as villains rather than partners, unintentionally undermining the long-term health of the communities we care about.
At SENT, we believe stability is built through partnership, not replacement.
Why Partnership Matters
Consider food insecurity. SENT operates a low-barrier, client-choice food pantry that can serve up to 600 families per month at full capacity. That work matters. But it also reveals an important truth: no single nonprofit can—or should—meet all community needs on its own.
If nonprofits replaced grocery stores and food producers entirely, communities would lose jobs, local investment, and economic circulation. That is why SENT is intentional about positioning our pantry as a complement, not a substitute. We help families stretch limited dollars while continuing to rely on and celebrate for-profit partners like Dillon’s, Aldi, and Hildebrand Farms Dairy. These businesses are not side notes to our work. They are essential to it.
The same principle applies to financial institutions.
The Trust Gap in Banking
Remaining unbanked is not a neutral condition. It often deepens financial instability and increases reliance on costly alternative financial services.
According to 2025 Urban Institute research, only 55% of unbanked respondents trust banks, compared to 88% of those who are banked. High and unpredictable fees, lack of transparency, and prior negative experiences were cited as the primary reasons people remain outside the mainstream financial system. Notably, nearly 40% of unbanked respondents said they would consider opening a bank account if fees were eliminated or significantly reduced.
Even among those who are banked, more than half reported relying on alternative financial products such as prepaid cards, check-cashing services, or short-term loans. These tools quietly drain resources from households and neighborhoods that can least afford it.
SENT’s Role: Building a Bridge
SENT is not the answer. We are not meant to replace financial institutions or permanently mediate every transaction. Our role is to be a bridge when trust has been broken.
We have seen what is possible through partnerships with institutions such as Capitol Federal Bank, CoreFirst Bank & Trust, Kaw Valley Bank, Envista Credit Union, and Azura Credit Union.
Existing models point to practical ways forward:
- Bank On–certified accounts, led by the
Cities for Financial Empowerment Fund, offer low-cost checking with no overdraft fees. - NYC SafeStart Accounts, created through
New York City’s Office of Financial Empowerment, paired safer accounts with financial coaching. - During COVID-19, some banks demonstrated that targeted fee relief is operationally possible when it is clear, consistent, and transparent.
These examples show that rebuilding trust is achievable—but only when expectations are predictable, and support is time-bound.
What SENT Is Proposing
Trust is built through consistency, transparency, and shared responsibility. SENT’s approach centers on:
- Fee-safe banking products that prevent harm before it occurs
- Temporary, clearly defined fee-relief support, potentially funded through
Community Reinvestment Act investments
or philanthropy - Relational financial coaching, so confidence and capability grow alongside access
This is not about shielding people from responsibility. It is about creating a fair starting line, with the long-term goal of full participation in the financial system—mortgages, small business loans, car financing, and education funding.
Why This Matters Now
Without trusted financial relationships, even families doing everything right are locked out of opportunity. Housing stability, homeownership, and wealth-building increasingly depend on access to fair financial systems. When trust is absent, entire neighborhoods are excluded from economic growth.
If we are serious about expanding homeownership, strengthening local economies, and moving families from survival to stability, rebuilding trust between neighbors and financial institutions is foundational.
SENT is not the answer.
We are gate openers, encouragers, and advocates, helping families reconnect to the systems they will one day rely on. When nonprofits, businesses, and communities walk together, stability becomes possible—and opportunity follows.
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