The Banking System Is Failing Immigrant Families

Opinion for The Latino Newsletter

Editor’s Note: Last week, Isaac wrote to me with an opinion essay he had published for a college class. He pitched the piece to me, and because I liked how he incorporated his personal experience, I edited it for The Latino Newsletter today. — Julio

Although immigrants in the United States live similar lives to those of U.S. citizens, they are not treated the same. Instead, they face systemic inequities that weigh heavily on their households. Immigrants contribute immensely to the American economy, yet they are often shut out of essential services, creating barriers to their success and stability.

I see this in my personal life almost every single day. My family owns a small business, which my brother now runs. Despite paying taxes every year like everyone else, he feels that U.S. policies unfairly target immigrants. For example, he believes banks don’t trust immigrants, which is why he can’t qualify for a business credit card. This makes it harder to get the loans he needs to grow the business. It's particularly frustrating, considering that immigrants make up over 19% of the U.S. workforce and contribute significantly to the economy, yet face barriers like these all the time.

Immigrants are a driving force in the U.S. economy, yet they’re often shut out of the very benefits they help sustain. Policies that give immigrants full rights in the labor market wouldn’t just help families like mine—they would strengthen the economy for everyone. Right now, outdated laws and systemic barriers make it harder for immigrants to succeed, even when they work just as hard and pay their fair share.

Immigrants are often left out of the systems that others take for granted, making it nearly impossible for them to fight back against unfair treatment. A Cornell Law Review article explains this clearly: “Whereas antitrust assumes that actors can freely navigate markets (e.g., if Brand X raises widget prices, consumers are expected to switch to a cheaper rival), immigration status may prevent foreign-born persons from utilizing self-help remedies.” My brother’s experience proves this point—he feels stuck in a system that doesn’t trust him, even though he works just as hard and follows the rules.

Discrimination and limitations on immigrants, such as restrictions on accessing government agencies or financial institutions, make life harder for families like mine. Even if they are fully documented, it’s often impossible for immigrants to get loans or financial support. A strengthened policy that grants immigrants full rights in the labor market would allow families to access the resources they need during tough times.

These barriers aren’t just theoretical. They show up in real life, impacting immigrant communities every day. In 2015, for example, a mortgage program in Illinois highlighted how traditional lenders unfairly rejected self-employed borrowers. Many immigrants were affected because their jobs didn’t fit strict lending criteria. This reflects the broader systemic issue: outdated lending practices often block immigrants from the financial tools they need to succeed, just like my brother’s experience.

Banks are among the biggest barriers when it comes to helping immigrants access financial tools. Despite making up a large share of the workforce and proving they can support themselves, immigrants often face challenges when trying to access loans or open bank accounts. A recent study in Technical Communication found that many immigrants perceive U.S. banking systems as inaccessible, with most participants saying that “banking is too tied to immigration status, which makes it difficult for immigrants to open accounts or enjoy equal access to banking.” These perceptions reveal how systemic barriers in the banking industry exclude immigrants from opportunities to grow businesses, buy homes, or provide stability for their families.

If banks were to change their approach and provide loans to more immigrants, they would not only help immigrant families but also see financial benefits themselves. By extending these resources, banks could tap into a growing and underserved customer base. This would lead to increased profits for financial institutions and, over time, strengthen the U.S. economy as a whole.

It is our job to advocate for ourselves and demand change. We have a voice, and we must use it.

I encourage our communities to spread the word, stop living in fear, and come together to fight for a better future. We must push for a new policy—one that grants immigrants full rights in the labor market and benefits everyone in the U.S. economy.

About the Author

Isaac Ramos-López is a college student at Regis University in Denver.

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What We’re Reading

More Latinos and Immigration Takes: On Monday, The Atlantic published a “How Democrats Lost Their Way on Immigration” piece by former Obama staffer Cecilia Muñoz and veteran immigration rights leader Frank Sharry. 

The Latino Newsletter welcomes opinion pieces in English and/or Spanish from community voices. You can email our publisher, Julio Ricardo Varela. The views expressed by outside opinion contributors do not necessarily reflect the editorial views of this outlet.