Kevin Hart on Nov. 21, 2021, in Philadelphia. (AP Photo/Matt Rourke)
Past remarks by comedian Kevin Hart that have recently resurfaced on social media suggesting that the unbanked lack the intelligence to obtain a bank account have sparked discussions about financial inclusion and the barriers many face in accessing traditional banking services.
Hart’s comments reflect a seeming lack of understanding of the complex challenges that lead to individuals being unbanked or underbanked, especially within marginalized communities. In reality, the issue involves socioeconomic factors, systemic barriers, and historical disparities.
On Sept. 26 as a clip from Hart’s 2021 appearance at the 10X Growth Conference hosted by Grant Cardone began circulating on social media.
“If you look in the hood, there’s liquor stores and check cashing places. You know why? Because they know the people in the hood aren’t smart enough to open up bank accounts. They’re gonna get a check, they gon’ cash it, and it’s a liquor store right next to it,” Hart said. “Let’s just put that around them. Let’s also put a bunch of s–t that’s easy and cash available,” Hart continued. “We don’t want you to gain credit. We want you to be cash-driven. That’s how we keep the poor poor. It’s not until you understand, that you get out.”
In the U.S. a significant portion of the population is unbanked or underbanked, meaning they either do not have a bank account or have one but rely on alternative financial services due to limitations in traditional banking. According to the National Low Income Housing Coalition, four in ten Black adults and three in ten Hispanic adults fall into these categories, according to the National Low Income Housing Coalition.
One common reporting system used by banks to assess potential customers is ChexSystems. It tracks individuals who have faced issues with previous bank accounts, such as bouncing a check or not paying an overdraft fee. This system plays a significant role in determining whether an individual is deemed suitable for a new account, NerdWallet reported.
ChexSystems operates as a national consumer reporting agency that banks and credit unions utilize to evaluate the risk associated with potential customers. The information provided by ChexSystems can be an obstacle for those seeking to open new accounts. If someone is blocked from opening an account due to the ChexSystems feedback, it could take up to five years for them to be approved after working to improve their financial health. Or the person can a second-chance checking account, which is an option for people who otherwise can’t get a bank account.
Some banks and credit unions offer “second chance” checking accounts for people to rebuild their banking histories. Some of these accounts will charge a monthly fee, NerdWallet reported.
In addition to a historic mistrust of financial institutions, another reason some Black people are unbanked are a lack of banks in Black communities. Banking deserts, areas with limited access to traditional banking, often force communities to resort to payday lending—a detrimental cycle. Payday loans come with exorbitant interest rates, often trapping borrowers in a cycle of debt. Many resort to payday loans as a last resort, further causing financial strain, Medium reported.
Entertainer Kevin Hart is interviewed on the NFL Network prior to an NFL football game between the Philadelphia Eagles and New Orleans Saints on Nov. 21, 2021, in Philadelphia. (AP Photo/Matt Rourke)
