I recently saw an interesting, yet

entertaining video. Though not on top of the academic hierarchy, YouTube producers “Internets

Celebrities” offer a fresh and street level view of problems in a humorous way. Their film

Checkmate delves into a problem facing many urban centers: the lack of financial

institutions.

The film focuses are the poorest areas of east New York, in Brooklyn. The hosts

of the video investigate an interesting concept in the lower income neighborhoods of the city: the

lack of commercial banks. These financial institutions do not appear in these areas of Brooklyn.

Without the availability of these traditional financial centers, the residents of these neighborhoods

are forced into using the outlets available- check cashing centers.

These centers although

convenient open a trap for the members of the community. With exurbanite fees that strain paychecks

and the lack of an opportunity to build savings, the check cashing services offered in these

neighborhoods work to keep the status quo.

The video states that in the more wealthy areas

like Brooklyn Heights, traditional banks appear 1 for every 1,000 residents. In the poorer

neighborhoods like Bushwick – 1 bank for every 50,000 people. The lack of these centers deprives the

poor of creating savings, and gaining access to the numerous benefits of having a bank account. From

direct deposit to growing net wealth, deprived of these services the poor will stay poor.

The

video discuses however that banks are business, responsible to their shareholders and are not

required to open in less profitable areas, which is the basis of sound business practice. My thoughts

however are in this age of government bailout, hope and change, why not alter the system? What has

happened to the local and regional banks that serviced their residents? Let’s stop bailing out big

business and start new business, let’s let people help themselves. With successful programs in micro

loaning and community development, why not invest in the neighborhoods themselves? With small,

community banks placed in areas in need of a financial center, the residents of those neighborhoods

can finally get easy access to the benefits of checking and savings. Let’s stop the debt wormhole

and give it a try…what’s to lose?

href="http://www.youtube.com/watch?v=iAKJKBCyPUY">

href="http://www.youtube.com/watch?v=iAKJKBCyPUY">Checkmate on YouTube

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