Overcoming Poverty: 8 Alabama counties have 3 or fewer banks, creating challenges in underserved communities

MONTGOMERY, Ala. (WSFA) – Rural Alabama faces many unique problems; among them is the challenge of banking. A 2021 report from the Federal Deposit Insurance Corporation, or FDIC, shows that over 230,000 Alabamians are considered “unbanked,” meaning they do not have a bank account.

Alabama Banker’s Association President & CEO Scott Latham said owning a bank account is critical today more than ever.

“If you don’t have access to a bank or to a bank account, there may be challenges with building credit, there may be challenges in not being able to obtain a loan or obtain the products or services that [you] may need,” Latham said.

Trust, not enough money, or bank branches being too far away are some of the reasons why there are still many people without an account.

All 67 counties in the Yellowhammer State have physical bank branches, but for those living in Macon, Coosa, Perry, Wilcox, Green, Hale, Bullock, and Conecuh counties, there are three or fewer locations residents can choose from.

“Our community is filled with senior citizens who don’t have the means to ensure that they can get 20 miles down the road to another bank institution, in order to do their business on a monthly basis,” said Emefa Butler, Founder of the C.H.O.I.C.E Center in Uniontown. CHOICE is short for “Choosing to Help Others In Our Community Excel.”

Butler has been in the finance business for 15 years, and she has seen how the lack of financial literacy has hindered people from getting access to “what they need from a financial perspective” to overcome poverty.

Cadence Bank closed its Uniontown branch in July, saying in a statement that the decision was a “difficult one” but that it would “allow us to optimize and strengthen our branch network and ultimately best serve our customers.”

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Community banks in rural areas have been working to get more people to sign up for a bank account. Bank presidents say that it requires them to start a conversation with people in their communities and figure out their individual needs.

“We allowed people to come in and open the account without any money in it as long as they were receiving a direct deposit,” said Richard Wright, Interim President of Town-Country United Bank in rural Camden.

While the number of unbanked individuals in Alabama has decreased over the years, Wright believes that banks will have to do more if they want to reach those who remain.

Marion Community Bank President and CEO Guy Davis said bank customers building a relationship with their banker could be essential in a time of need.

“They’ll be the ones to hold hands with you and get you out of the ditch,” Davis said.

Financial education resources are available through banks and nonprofits.

The following nonprofits offer financial education:

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