In recent years, the Avondale Meadows community has made a number of strides. A new health center, YMCA and Goodwill have opened, and the recent addition of a Save-A-Lot has allowed the community to shed its title of food desert. Despite these new developments, the area’s only bank will close, leaving residents without a banking option.
Area resident Teresa Starks says she lives a few blocks away from the branch and often walks over to make deposits and withdraw cash from the bank. She is disappointed in the bank’s decision to closes its Meadows branch.
“I hate the fact that they are closing this branch, because it’s very convenient for me. I live about four blocks down the street, and I walk down here to withdraw money. Now I have to catch an IndyGo bus and go down near 52nd and Keystone. It makes it a lot more difficult for me, and I don’t like that,” said Starks.
The rise of online banking has allowed “banking deserts” to spread through low-income neighborhoods in the United States. Christine Holevas with Chase Bank says customers who have migrated to online banking have reduced the need for physical branches and that the decision to close a branch is based on the amount of activity at the branch.
“We are consolidating our branch 3950 Meadows Drive into our branch 5236 N. Keystone on April 25, due to significant decreases in volume at the branch,” said Holevas. “We know our customers like going to the branch and talking with their banker. However, customers don’t need the branch as much for depositing checks, getting cash or moving money around. They can do it themselves whenever they want through our online and mobile access points. We continue to open new branches where it makes sense, renovate existing branches and consolidate branches where there’s low traffic. The consolidation initiative, focused on right-sizing our network, has been occurring for a couple of years and will continue in 2017.”
Gina Lewis Alexander, executive director of Oasis Christian CDC, has worked with the northeast corridor quality of life plan and is passionate about the development of the Meadows community. Lewis Alexander says some members of the community may not have access to online banking, and that without access to basic financial services, poor and minority communities often turn to predatory, high-cost options such as check cashing services and payday lenders.
“It will impact the economic ability of the residents tremendously. It oppresses the residents that live in that area. There has been an effort to demolish the digital divide; however, when you have people retiring who may not be exposed to computer access, what are they supposed to do? You still have a fraction of people who do not use online banking, and now you are limiting the economic development of the community, because businesses still go and deposit cash in a bank. You have Save-A-Lot coming to the community, but you are going to detract away from that, because you don’t have a banking institution.”
Holevas says the Chase branches that have closed in Indianapolis over the past few years have been from all income tracts. In Indianapolis, Chase has closed branches along Dr. Martin Luther King Jr. Street, Crawfordsville Road and Fall Creek Parkway. However, Lewis Alexander thinks communities with fewer banking options to begin with likely feel it the most.
Meadows resident Frank Mozee said he had no clue the bank was closing, but he agrees that it will impact the community’s most vulnerable residents.
“Now it’s just like before, when they had no grocery store around here. It’s going to affect people who are on Social Security and limited income,” he said. “Most checks need to go through a bank, and now they will have to worry about going up on Keystone or someplace else because there are no banks close. Banks are a lot safer than check cashing places. It will be pretty hard on people.”
Lewis Alexander hopes to see the community take action.
“I know Mount Zion has a credit union. I would like to see doors and opportunities open up for faith-based institutions to possibly have a credit union so residents and business can go and use that. It’s time for our communities to rise up and recognize the priorities of its neighborhoods, because the wool has been pulled over our eyes, and the rug has been pulled up under us in ways we cannot even imagine.”
