Across the country, entire neighborhoods — most often Black and low-income —are left without a single bank in sight. These so-called “bank deserts” aren’t accidents of geography, but the result of decades of redlining and disinvestment, leaving millions locked out of the wealth-building tools that others take for granted. If you think you may live in a bank desert, this one’s for you.
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Let’s unpack what bank deserts are, the lasting impact they have on Black and low-income communities, and how mission-driven institutions and financial discipline can help residents avoid costly banking traps.
What Is a Bank Desert?
A bank desert, as defined by the Federal Reserve Bank of Atlanta, refers to a census tract without a physical bank branch within a set distance. The distance needed to consider an area a “desert” varies depending on whether the community is urban, suburban, or rural. The distance thresholds are as follows:
Urban areas: 2 miles or more to the nearest bank branch.
Suburban areas: 5 miles or more to the nearest bank branch.
Rural areas: 10 miles or more to the nearest bank branch.
While those distances may not seem overwhelming on paper, they can create serious barriers in practice—especially for those who don’t own a car, rely on public transportation, or juggle multiple jobs. In many cases, taking a trip to your bank can be costly, and time consuming, just for a single transaction.
Many deserts exist in sparsely populated regions of the country. States lacking nearby branches include Mississippi, Louisiana, Arkansas, the Carolinas, Virginia, Alabama, and more, per Seetekcorp.
Exploitation of Impoverished Communities
Without nearby banks, residents face higher fees, limited financial options, and fewer opportunities to establish credit—barriers that can compound over generations and widen the racial wealth gap.
“If you don’t have a banking institution, what do you do when you get paid? How do you cash your check? You’re often at the mercy of check cashing agencies,” Chief Administrative Officer and General Counsel of Southern Bancorp Walter Pryor told The Root.
“You don’t have access to affordable credit… you don’t have access to the ability to purchase a home. The ability to save money is a detriment if you don’t have an account where you can safely store that money,” he continued. “Obviously putting it under your mattress or in a coffee can is not the smartest way, or safest way to save money.”
The Cost of a Cashless Society
Sure, America isn’t 100% cashless—yet. But many businesses from grocery stores to ride-share services are moving away from cash, and residents without bank accounts are sure to be hit the hardest. Even hard working people who receive paper checks are now being targeted.
According to the Department of Treasury, the federal government will stop issuing paper checks for most federal payments on September 30, 2025. “If you are one of the few people who still receives a federal benefit check, it’s time to switch to an electronic payment method,” the treasury warned. The shift comes as President Donald Trump reportedly attempts to limit “fraud and theft.”
“If you don’t have an account that can tie to your mobile phone—or have a [debit/credit] card—you can’t patronize that institution,” Pryor explained.
Mission Driven Institutions
Mission-driven financial institutions such as Southern Bancorp, are changing the game for Black and low-income communities. By offering affordable checking and savings accounts, low-interest loans, and credit-building programs, they give residents a real alternative to payday lenders and check-cashing places — which have impoverished communities in a chokehold in 2025.
“You’ve got payday loans, title loans, check cashers, pawn shops, all of these things we call the ‘alternative financial system’ that keeps people from building that generational wealth,” Nathan Pittman, Chief Brand Officer for Southern Bancorp, told The Root.
“It’s a tough thing to fight but there are mission driven financial institutions like ours that go into those places and say, ‘Hey we want to be here in this community.’”
Financial Discipline
Practicing financial discipline — through budgeting, saving, and using mission-driven institutions — creates a path toward financial control. It also means staying informed, making intentional choices with your money, and using available resources to build long-term security.
“Saving is critical. To be able to consistently set aside savings is really important to prepare for unexpected emergencies,” Pryor urged. “Just putting it on paper, being able to look at it, sometimes can help impose a discipline that you might not otherwise have naturally.”
Pryor concluded: “Trying to live within your means is very hard. People who don’t make a lot of money — people who make tons of money — often have trouble living within their means… and exercising discipline over money and spending.”
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