Use of Bank and Nonbank Financial Services : Financial Decision Making by Immigrants and Native Born

This study determines that the decisions to use nonbank financial services and to have a bank account are made jointly by immigrant and native born families. Immigrant families, especially those from Mexico or other Latin American countries, have a higher probability of using nonbank financial services than native born families, regardless of their banking status. Residing in concentrated ethnic enclaves or being a U.S. citizen, however, lowers the probability of their using these services. Among native born families, being Black or Hispanic increases the probability of using these services. Our findings support continued efforts to encourage participation in the financial mainstream among immigrant and minority native born families. The benefits and consumer protections can help these families establish financial stability, resiliency, and economic mobility. To our knowledge, this is the first comprehensive study of immigrant families' joint decision making about using nonbank financial services and bank account ownership