PHOENIX–Credit unions in Arizona have joined with local banks as part of a week-long “Move Your Money” campaign aimed at getting Arizonans to keep their funds with local institutions.
The initiative, sponsored by Local First Arizona, suggests the global, big banks such as Chase, Bank of America, or Wells Fargo, enable and support modern-day “redlining.”
“Ninety-one percent of Arizonans’ deposits, earned by hard-working residents, sit in non-local, out of state banks,” said Local First Arizona Executive Director Thomas Barr. “Roughly 70% of those deposits, totaling $88.5 billion dollars, sit in three megabanks. And while this doesn’t seem to impact day-to-day life, it directly impacted whether or not many small businesses were able to receive federal help during this pandemic and will dictate who in our community gets access to capital in the days ahead.”
More ‘Resilient Economy’
According to organizers, on top of sharing facts, figures, and local success stories, the Move Your Money campaign will ask Arizonans to pledge to move their money into a local bank or credit union as a strategy for building a more resilient Arizona economy. A “Move Your Money Switchkit” on how to seamlessly start the process will also be provided, more can be found at www.banklocalaz.com.
Local First Arizona reported Arizona only has 13 local, community banks that recirculate a significantly higher amount of dollars back into the local economy through loans, large and small.
“This is a dangerously low number in comparison to other states; Texas, with 407 local banks; California, with 133 local banks; and Colorado with 73 local banks,” the organization said.
“Upping Arizona’s local lending power is one powerful way to make a dent in the racial wealth divide and prepare us for future storms. While bigger banks prioritized bailing out big companies, corporations and chain stores, local banks focused on getting funds to small and mid-sized business owners, owners of color and rural businesses, and they do this all year long, even when the world isn’t watching,” Barr said.
Small businesses in Arizona make up 99% of total businesses and employ about 40% of Arizona’s private sector workforce.
The Participants
Participating banks and credit unions: Alliance Bank of Arizona, Arizona Central Credit Union, Arizona Federal Credit Union, Coconino Federal Credit Union, Commerce Bank of Arizona, Copper State Credit Union, Credit Union West, Desert Financial Credit Union, Gateway Bank, Horizon Community Bank, Hughes Federal Credit Union, Landings Credit Union, Marisol Federal Credit Union, OneAZ Credit Union, Republic Bank of Arizona and Vantage West Credit Union.