Immigrants and U.S.-born divided by financial growth  

This population is new to the U.S., may have limited English skills, and not have all documents needed to open an account available. 

According to the American Immigration Council, there are 44.9 million immigrants in the U.S. as of 2021, with 10.3 million of them being undocumented.

With the example of a bank account, while it is possible to open an account without a Social Security Number (SSN) it is still not simple. Immigrants can apply for and use an Individual Taxpayer Identification Number (ITIN) issued by the Internal Revenue Service (IRS). An ITIN is issued to people who do not have a SSN regardless of immigration status. Immigrants can apply online for an ITIN and use it in place of a SSN when accepted, but there are still limitations to their financial growth.  

Auto loans, education loans, mortgages, retirement investing, and even high-interest credit cards will typically not approve a first-time applicant who does not have credit history and long-standing banking and employment history. This is something most immigrants do not have, since they are coming to the U.S. as adults and starting their lives from zero- with the exception of Deferred Action for Childhood Arrivals (DACA) recipients or “Dreamers.” 

Financial Research Survey Immigrants vs. U.S. Born  

“We have entered a period where real-time market research tools have unprecedented reach.  Even still, all the digital survey outlets insisted that we would be lucky to reach 100 immigrant respondents nationally. Nevertheless, we persisted, and we heard from 2,300+ immigrant respondents from all walks of the immigration journey,” said Deeba Deeba Zivari, strategic partnerships manager at One Percent for America.  

In order to understand what the differences in financial product use between immigrants and U.S.-born are, One Percent for America (OPA) launched a second national survey.

OPA’s first survey found that immigrants across demographics reported that funding their USCIS application fees was a significant obstacle to immediately pursuing their goal of becoming U.S. citizens. In this subsequent survey, OPA uncovered what other financial and consumer challenges immigrants face along their naturalization journey. In this instance both immigrants and U.S.-born citizens were part of the respondent pool and the questions focused on the use and need of financial products and services.   

The financial products and services immigrants reported needing most were: health insurance, education loans, auto loans, and home mortgages.

Findings from our financial research survey involving immigrants and U.S. born citizens: :

• 20% of immigrants surveyed reported needing but not currently having health insurance
• 40% of immigrants surveyed reported needing but not currently having a 401k plan
• 25% of immigrants surveyed reported needing but not currently having a home loan

Surprisingly, A majority of immigrants and U.S.-born citizens, 49% - 58%, reported a household income of $49,999. Despite similar annual earnings, immigrants still rely heavily on cash to achieve these common financial milestones.  

"This massive breakthrough population that is poised to bring critical value to our country is shrouded in data and misconceptions,” added Zivari. “The insights we brought to light through primary research, revealed real levers to reduce barriers at scale and true opportunities that private-public partnerships can hang their hat on.” 

Survey Takeaways: Why Immigrant Finances Matter 

A survey of this kind has not been performed with this mixed consumer market before, and it reveals the vastly untapped potential of offering financial services and products to immigrant customers. Immigrants and U.S.-born citizens are significantly more alike than commonly assumed when it comes to financial goals. The few differences between them point to priorities that are specific to population and financial product use. Read more about the findings of this unique survey: Financial Disparities between Immigrants and U.S.-born. 

By breaking the financial barriers to U.S. citizenship our entire country wins. Now, more than ever, investing in citizenship supports the future of our communities and our economy.