Millions trapped in banking deserts as major institutions abandon communities
For over 15 years, Torry Holmesly has lived in Azle, Texas, without a nearby bank or credit union she can trust. Her struggle is shared by 12.3 million Americansâroughly the population of Illinoisâwho reside in so-called banking deserts. These areas, often overlooked by major financial institutions like Bank of America, Wells Fargo, and PNC Bank, leave residents vulnerable to financial hardship and predatory lending.
A banking desert is defined as a census tract where the nearest bank branch lies more than 2 to 10 miles away, depending on the communityâs size. Holmesly, now 50, has faced years of instability, including neglect, violence, eviction, and homelessness. Without local banking access, she has lost savings, peace of mind, and even her dream of homeownership. Instead, she has been forced into costly predatory auto loans just to get by.
The problem is growing. Between 2019 and 2025, an additional 785,000 people found themselves in banking deserts, partly due to branch closures during the COVID-19 pandemic. Large banks often prioritise profit over accessibility, leaving entire neighbourhoods without essential services. Meanwhile, chain supermarkets and dollar storesâsimilar to banksâhave expanded in low-income areas, filling gaps left by traditional retailers. Investigative reporters at Yahoo Finance aim to expose how institutions exploit residents in these underserved areas. Potential solutions could include stricter regulatory oversight, such as USDA-style studies on access barriers or anti-redlining measures to prevent financial services from abandoning communities.
Banking deserts remain a persistent issue, affecting millions of Americans like Holmesly. Without intervention, residents will continue to face financial exclusion, higher costs, and limited opportunities. The trend highlights the need for policies that ensure fair access to banking for all communities.
