Bank on it: Here’s how the Hartford Public Library and partners plan to help the city’s most vulnerable populations

Payday loans, pawn shops, check cashing services and other services that come with high costs, interest rates and fees often lead to the paradox that it’s expensive to be poor.

Those living in poverty or near the poverty line often are unbanked or underbanked, which can lead to the susceptibility to other scams that perpetuate the spiral of being poor.

A new program — which partners the Hartford Public Library, Liberty Bank, the Connecticut Association for Human Services and Cities for Financial Empowerment Fund — takes aim at one of the most financially vulnerable populations by expanding banking opportunities for the city’s immigrant and refugee community.

U.S. Sen. Richard Blumenthal, Hartford Mayor Luke Bronin, library President Bridget E. Quinn and Liberty Bank Vice President of Community Development Glenn Davis were on hand at the Hartford Public Library on Friday to announce that the library received a $487,000 federal grant to help promote and teach financial literacy among the immigrant community with the Building Social Capital: An Inclusive Approach to Immigrant Financial Immigration program.

The program will help those in the immigrant and refugee community navigate the world of financial institutions, which can be daunting for anyone.

“Immigrants may also have other specific challenges, like English language proficiency, trust issues with financial institutions or government, wondering who is trustworthy in these interactions, they may have already been subjected to, perhaps, predatory lending or fees associated with other kinds of financial tools,” Quinn said. “We are starting something new, that we hope will help communities across the country serve this population as well as make our economy stronger through the work and the access this population will now have to these financial services tools.”

Blumenthal, who helped secure the grant with U.S. Sen. Chris Murphy, said the grant is an investment in the community, not a cost. He also noted the important work that the library does in the community.

“America has always been the land of opportunity, of equal access to rising,” Blumenthal said. “That’s why people come to America over the centuries. Libraries are a symbolic and a practical sign of America, the land of opportunity. ... Libraries have been community centers, a source of learning and self-advancement.”

He noted his father immigrated to the U.S. in the 1930s at the age of 17. Back then, Blumenthal said, the banking system was a lot easier to navigate.

“Today people need a lot more education not only to gain opportunity … but also to avoid scams: payday loans, pawn shops, all kinds of promotions and pitches on the internet,” Blumenthal said. “Complicated stuff at the end of the day, deceptive and misleading. Financial literacy has become a form of gaining opportunity, but also protection against some of the scams that are out there. … Financial know-how is essential in today’s world to gain opportunity and avoid the pitfalls of scams and con artists. In a very difficult economic time, to make sure the purchasing power of consumers keeps pace with potential rising prices.”

Program participants agree to deposit into a savings account with Liberty Bank $50 a month for five months, according to a press release. The account will be administered by the library. When the participant reaches the goal of $250, the money is transferred to an individual account in their name and they receive a matching $250, the release says. Participants may then close out the account. However, if they maintain a $250 balance for five more months, they will receive an additional $250 from library donor funds, the release says.

During the five months, participants meet for three hours, every other week, for financial education and other networking opportunities.

The program will be available to those who have been in the country less than 10 years.

Bronin said the matching aspect of the program is “a powerful thing.”

“That helps address the fact that so many residents in our community and in our country in our country are unbanked,” Bronin said. “About a quarter of Americans are unbanked. You can imagine that percentage is much larger in a community where there is a concentration of poverty and in a community where there is a large portion of immigrant community. To use this opportunity to connect our residents to banks, to financial institutions, to savings accounts, and to provide that educational component that goes along with it is really really powerful.”

The American Place at The Hartford Public Library proposed and will administer the program, which is expected to launch in the spring, Quinn said.

“This is a really critical program,” Quinn said. “We are super excited for this program.”

YMCA of Greater Hartford receives $500K grant

The YMCA of Greater Hartford also received a $500,000 grant for improvements and upgrades to its Albany Avenue location, officials announced Thursday.

Lt. Gov. Susan Bysiewicz, Speaker of the House Matt Ritter and state Rep Ed Vargas touted the grant, which came from the State Bonding Commission.

“The programs and services that our state’s local YMCA’s provide are vital for our younger generation’s positive development,” Bysiewicz said in a press release. “Children can interact with their friends and have fun, learn social-emotional skills and coping mechanisms through practice and play, all while being exposed to different and exciting opportunities.”

Ritter and Vargas also noted the importance of the YMCA.

“We all recognize that the Y is a hub of enrichment programs for families and young people — the programs are vital to our community,” Ritter said.

“Summer enrichment programs are invaluable in the overall development of youth by giving them opportunities and options to learn, grow and enhance problem-solving and social interaction skills which are vital for success,” Vargas added. “I applaud the good work of the YMCA that has, for generations, been a cornerstone in our community and has had such a positive impact on many lives.”