Few immigrants used traditional banks at the beginning of the 20th century. Money was either stored away by the individual or the services of an immigrant banker were used. These unsanctioned bankers were generally entrepreneurs that operated out of institutions within the ethnic neighborhood such as grocery stores and boardinghouses. Speaking the language of the immigrant, they often acted as an intermediary and performed services such as sending money oversees or purchasing tickets for their clients. Immigrant bankers eased the transition and performed valuable services for new arrivals to the country but were often unreliable. During an economic downturn in 1907, it was estimated that immigrant bankers in Cleveland lost over 2 million dollars of the their clients' money.
As ethnic communities began to create permanent settlements and quotas limited new immigration, the services provided by these entrepreneurs were no longer in demand. Traditional banking institutions were better suited to meet the needs of customers that wished to save and borrow larger amounts of money better in order to purchase land or start a business.
