The number of non-citizens using the U.S. banking system has dropped sharply as the Trump administration’s immigration crackdown reshapes everyday financial life for immigrant communities, according to a Bloomberg report cited by Breitbart News.
Immigrants have been closing bank accounts and returning to holding cash at home, the report said. At the same time, migrants are taking out fewer loans β with consumer lending to undocumented borrowers down about 70 percent since 2024 β and lenders are increasingly hesitant to enter into such deals at all.
A chilling effect on financial services
Erica Serna, associate director of financial empowerment at the Hispanic advocacy group UnidosUS, told Bloomberg that the shift is visible across the services her organization tracks.
“We’ve seen a reduction overall in people who come for financial services, education services, workforce development,” Serna said. She described the current environment as “truly frightening for families.”
The pullback follows a years-long back-and-forth over how banks should treat customers based on immigration status. In 2023, the Biden administration warned the banking industry that “denying someone access to credit based solely on their actual or perceived immigrant status may violate federal law,” a posture that critics said pressured institutions into extending risky loans under threat of costly federal investigations.
The Trump administration has reversed that approach. In May, President Trump signed an executive order directing federal authorities to ensure financial institutions pay closer attention to the residency status of both prospective and existing clients β a directive that has already begun to change how banks assess risk.
Deportations and cancelled work permits add uncertainty
The policy shift is unfolding against a backdrop of sweeping enforcement. More than a million people have been deported since Trump returned to office, according to the report, and work permits have been cancelled across the country. For banks, the result is a far less predictable landscape when it comes to serving undocumented customers.
The Independent Community Bankers of America (ICBA) has pushed back on the new expectations, urging members to “avoid information collection requirements that impose substantial burdens on community banks, undermine their ability to meet the needs of local communities, and drive American citizens out of the regulated banking system.” The group’s warning reflects concern that stricter screening could spill over onto legal customers and complicate routine account openings.
Despite that resistance, the Treasury Department’s Financial Crimes Enforcement Network has cautioned banks to verify that clients are depositing money earned legally and under valid work permits.
Lending to borrowers without credit scores collapses
The numbers show how quickly credit has dried up for the segment of borrowers most likely to include undocumented immigrants. Bloomberg reported that across all asset classes, the share of loans to people without credit scores fell more than 70 percent from 2024 to 2025 β and then dropped another 40 percent in 2026. Auto loans and credit cards for those with low or nonexistent credit scores are expected to total about $7.2 billion in 2026, down from roughly $37 billion in 2024.
While those metrics do not map perfectly onto the undocumented population, Bloomberg describes them as a strong indicator. “It is the segment with the largest concentration of undocumented borrowers,” said Vadim Verkhoglyad, head of research at dv01, who authored the report. “The timing suggests lenders may be reducing exposure to these borrowers amid changes to the political and policy environment.”
The retreat is being felt directly by immigration attorneys and their clients. Jennifer Oltarsh, an immigration lawyer, said the fear among her clients is more intense than she has seen before.
“My clients are afraid, so they’re pulling their money out of banks,” Oltarsh said. “They’re holding it in their mattresses.”
The broader implications β for tax compliance, household savings and the relationship between immigrant communities and regulated financial institutions β remain uncertain as enforcement continues and banks weigh new compliance obligations against the needs of their local markets.
Source: www.breitbart.com β https://www.breitbart.com/immigration/2026/09/24/trump-immigration-crackdown-pushing-illegal-aliens-out-u-s-banking-system/