Banking on What

New Haven's giving immigrants city IDs so they can open bank accounts. But some banks say the card won't suffice.
July 25, 2007
By Betsy Yagla

New Haven municipal IDs are supposed to help undocumented immigrants—and any other city resident without an ID—open a bank account. Makes sense, since without banks, immigrants are forced to carry around large wads of cash or stash it under their mattress, becoming easy prey for robbers and burglars.

But the list of commercial banks that will accept the card as valid ID to open an account is short. Webster Bank requires state-issued documents. New Alliance Bank says it's on the fence about whether to honor New Haven IDs. Same with People's Bank. Several other banks—Wachovia, Bank of Southern Connecticut, Citizen's Bank, Bank of America—wouldn't even return the Advocate's telephone calls.

Of the half-dozen banks contacted by the Advocate, only two institutions committed to accepting the card: Sovereign Bank and the not-yet-opened First City Fund Corporation, the community development bank born from the ashes of the old New Haven Savings Bank.

Why the cool reception?

Kica Matos, head of New Haven's Community Services Administration and one of the brains behind the IDs, says she's not sure what the banks' hesitations are. She's been working closely with the Connecticut Bankers Association and will be meeting with local banks next week, she says.

"Once one major bank signs up, we think the others will come around," she says.