Collaborating with Congregations: Opportunities for Financial Services in the Inner City

This article suggests that by pooling the resources of the poor and by sharing information, religious and financial institutions can work together to change the inner-city economy of Los Angeles, California. The article discusses how inner cities face two core impediments to financial services, which are a lack of economies of scale and a lack of good information. The authors believe that understanding that functions need to dictate the structure of the financial service sector may be the first step toward achieving inner-city prosperity. It is suggested that a strong economic capital can strengthen the social capital that binds the community together.