Financial behaviors among Afro-Caribbean immigrant mothers : experiences with mainstream and alternative banking systems

Immigrants in the United States are disproportionately more likely to be unbanked (i.e. without a checking or savings account) than native-born Americans (Bohn & Pearlman, 2013; Herrick, 2009; Rhine & Greene, 2006). This qualitative research study employed a thematic approach to explore the banking experiences of first-generation, Afro-Caribbean mothers in a large metropolitan area of the United States. Semi-structured, in-depth interviews were conducted with eight participants and two community leaders from three Caribbean islands: (a) St. Vincent and the Grenadine, (b) Trinidad and Tobago, and (c) Jamaica. A thematic analysis presented a critical lens for examining the banking experiences of immigrant mothers. Family life course theory examined the importance of history, time, and context and how that affected banking behaviors. This study produced two manuscripts centering on how participants described and perceived their banking experiences. The first manuscript focused on participation in mainstream and alternative financial institutions among immigrant mothers. Life course theory highlighted the importance of the historical period and suggested that earlier financial socialization processes affected later banking behaviors. The first theme indicated that Caribbean immigrant mothers had a range of positive and negative experiences with mainstream and alternative banking services.The second theme emphasized the importance of alternative services such as Caribbean Susu or Jamaican Paadna (i.e. rotating savings and credit associations [ROSCAs]) as saving and banking options to participants. The third theme described the generational transmission of financial behaviors, demonstrating how these behaviors were influenced by parents or other family members. In the second manuscript, life course theory and a transnational perspective were used to examine the transnational activities in which immigrants partake and provided suggestions for financial educators. The first theme highlighted the meaning of remittance as a transnational activity. Participants stated that the key reasons for remittance were to (a) help family or friends financially, (b) save to buy a house, and (c) contribute to a transactional account to save for the future. The second theme outlined the importance of banking and invest investing in the native country as immigrants prepared for their financial futures. The third and fourth themes incorporated community leaders’ voices in an effort to explore strategies to help financial educators understand the saliency of ROSCAs and the fear immigrants may feel about using mainstream financial institutions. The third theme demonstrated how ROSCAs have persisted in Afro-Caribbean communities and remain a relevant financial resource for immigrants. The final theme suggested that inattentiveness to available community resources, lack of appropriate documentation to use mainstream services, and mistrust of mainstream financial institutions affected banking experiences.The themes from these manuscripts recommended more comprehensive and holistic approaches to exploring financial behaviors among first-generation, Afro-Caribbean immigrant mothers. Both manuscripts have implications for researchers and financial educators.