Community Banking Projects for Low-Income Canadians: A Report Examining Four Projects to Promote Financial Inclusion

Abstract

This report examines four distinct and geographically dispersed projects referred to here as community banking projects. The projects identified are Pigeon Park Savings (PPS, Vancouver), the Community Financial Services Centre (CFSC, Winnipeg), the Cash & Save (Toronto) and the Fonds d’entraide Desjardin (Mutual Assistance Fund) of the Desjardins Fédération (Québec).These projects were identified in earlier research (see Buckland et al., 2003) as projects that were designed with the goal of addressing financial exclusion in some way. The report examines seven key results from the research including, the disadvantaged context of inner-cities, key project catalysts, a new tier of banking, unique financial challenges, the importance of partnerships, the importance of people and relationships, and, cross cultural dialogue. One key conclusion from this research is while these projects can, and do contribute to the public good, they are expensive and are not likely to become self-sufficient. Another conclusion is that partnerships and building relationships across types of organizations is important for success. Finally, the role of government in these projects needs to be clarified, both in terms of public policy and funding.

Keywords: financial exclusion, bank projects, poverty

JEL Classification: personal finance