The relationship between American lenders and non-U.S. citizens has become increasingly strained. Rights advocates and data analysts report that many immigrants are closing bank accounts and opting to store cash at home, resulting in a decreased likelihood of borrowing. A recent report highlights that consumer loans to a borrower group that includes numerous undocumented individuals have plummeted by over 70% since 2024.
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Some lenders are reportedly exercising increased caution in extending credit to undocumented individuals, according to a representative from an industry group who requested anonymity due to the sensitive nature of the discussion. Access to the U.S. banking system has always been challenging for many migrants, but the ongoing immigration crackdown initiated by the Trump administration has exacerbated these issues.
Erica Serna, associate director of financial empowerment for UnidosUS, the largest Hispanic civil rights group in the U.S., noted a general decline in the utilization of financial services among immigrant communities, including education and workforce development resources. She expressed concern over what she perceives as a troubling shift in government actions that undermine due process and legal protections for families.
Since January 20, 2025, Immigration and Customs Enforcement (ICE) has deported, arrested, or stripped the legal work status of over a million individuals, based on data from the Department of Homeland Security. Furthermore, reports indicate that more than 50 individuals have died while in custody of ICE.
Despite these governmental pressures, the banking system has, until now, mostly remained unaffected. U.S. citizenship is not necessary to open checking or savings accounts, leading banks not to typically collect customers' immigration status. Earlier this year, proposed regulations requiring banks to verify customers' immigration status faced significant pushback from the banking industry and were ultimately dropped. However, in May, President Donald Trump issued an executive order instructing financial regulators to enhance their oversight of customer activities and statuses.