How the Other Half Banks

How the Other Half Banks chronicles the history and current state of banking access in the United States, with a focus on the unbanked and underbanked populations. The book examines why millions of Americans lack access to basic financial services and must rely on alternative providers like check cashing stores and payday lenders. The author traces the evolution of American banking from its origins through key developments including postal banking, credit unions, and the rise of community banks. She documents the consolidation of the banking industry in recent decades and analyzes how regulatory changes have impacted financial inclusion. Through research and policy analysis, Baradaran explores potential solutions to expand banking access, including the revival of postal banking and other public banking options. The book examines various models and approaches that could help integrate more Americans into the mainstream financial system. The work raises fundamental questions about the role of banks in society and whether access to basic financial services should be treated as a public right rather than a private market function. It challenges assumptions about personal responsibility while highlighting systemic barriers that perpetuate financial exclusion.

Readers describe this book as an examination of banking inequality that explains complex financial concepts in clear terms. Many note it reveals overlooked aspects of the postal banking system and banking history. Readers appreciated: - Clear explanations of how check cashing and payday loans exploit low-income communities - Historical context for today's banking disparities - Concrete policy proposals and solutions - Thorough research and citations Common criticisms: - Too much focus on postal banking as the primary solution - Some repetitive sections - Academic tone in parts - Lack of personal stories/examples Ratings: Goodreads: 4.1/5 (647 ratings) Amazon: 4.5/5 (103 ratings) Notable reader comments: "Finally helps me understand why my low-income neighbors use check cashing services" -Goodreads "Great research but needed more human elements" -Amazon "The historical background was fascinating but the postal banking solution feels oversimplified" -LibraryThing

The Color of Money by Mehrsa Baradaran The history of Black banks in America reveals the persistent racial wealth gap and systemic barriers in the US financial system.

The Unbanking of America by Lisa Servon A banking insider investigates check cashers, payday lenders, and prepaid debit cards to understand why Americans turn to alternative financial services.

The Financial Diaries by Jonathan Morduch, Rachel Schneider The year-long study of 235 low and moderate-income families documents how households manage their finances when faced with unstable incomes and expenses.

The New Jim Crow by Michelle Alexander The examination of mass incarceration demonstrates how the criminal justice system functions as a system of racial control parallel to banking discrimination.

Broke, USA by Gary Rivlin An investigation into the workings of the alternative financial sector exposes how businesses profit from providing high-cost services to the working poor.

📚 Author Mehrsa Baradaran immigrated from Iran to America as a child during the Islamic Revolution, arriving with her family as religious refugees. 💰 The book reveals that Americans spend about the same amount on basic financial services (check cashing, payday loans, etc.) as they do on food. 📬 The U.S. Postal Service successfully operated a Postal Banking System from 1911 to 1967, serving millions of Americans and helping fund two world wars through the savings it collected. 🏦 During the savings and loan crisis of the 1980s, the U.S. banking industry lost more money than in the previous 50 years combined, including the Great Depression. 💳 The book documents how in many low-income neighborhoods, there are more payday lenders and check-cashing outlets than there are McDonald's and Starbucks locations combined.