FINDING NEW WAYS

TO PREVENT
AND ALLEVIATE
POVERTY
IN MICHIGAN, THE NATION AND THE WORLD

Financial Inclusion in Rural

Communities: Key Statistics
Rural Communities and Access

82% of Americans living without any colleges or universities

in a 25 mi radius are rural residents
For every percentage point increase in the zip code’s rural population,
there were associated decreases of 7% and 5% in the rates of high-
speed internet access and smartphone ownership

For every percentage point increase in the zip code’s rural population,
there was an associated decrease of .5% in online banking

Every additional bank or credit union branch per 1,000

population in a zip code is associated with a .02% decrease in the
rate of online banking.
High Poverty Communities and Social-Economic Status

85% of counties that experience persistent

poverty are located in rural areas

Average fintech rates among high-poverty communities

are generally low, with an average rate of smartphone
ownership at only 37% and that of mobile banking is 7%
High-poverty zip codes with the first net worth quartile
(between > $0 to ≤ $58,129) were associated with an
8% decrease in the rate of online banking.

Every percentage point increase in communities’ residents with a

bachelor’s degree is associated with an increase of 65%
in the rate of high-speed internet access.
Digital Redlining

Rural Black and Latinx average household incomes are $20,651 and
$10,228 less than rural household average, respectively

Every percentage increase in a community’s Black population

was associated with an 18% decrease in their rate of high-speed
internet access, 1% decrease in smartphone ownership, 12%
decrease in online banking, and 3% decrease in mobile banking.
These trends may amplify marginalization among rural communities with high
poverty rates and concentrations of people of color, but Whites gain
advantages despite also living in poverty since they have better access to
services (internet, cell, banking). The historically Black south is particularly
underserved.

Every percentage point increase in a zip code’s White population was associated with
a 12% increase in the rate of high-speed internet access. Every percentage point
increase in a zip code’s White population was associated with increases of equal
magnitude in the rates of online and mobile banking.
 Terri Freidline and Zibei Chen. “Digital Redlining
Sources
and the Fintech Marketplace: Evidence from U.S.
Zip Codes.”

Terri Freidline, Sruthi Naraharisetti and Addie Weaver

“Digital Redlining: Poor Rural Communities’ Access to
Fintech and Implications for Financial Inclusion.”
poverty.umich.edu