About Bank On
The Bank On movement works to improve the financial stability of America’s unbanked and underbanked households by making safe, low-cost transaction accounts more accessible. An estimated 4.2% of U.S. households—or approximately 5.6 million—were unbanked in 2023, according to a Federal Deposit Insurance Corp. (FDIC) report. This means these households did not have checking or savings accounts at a traditional bank or credit union. The most common reasons that respondents surveyed for the FDIC report cited for being unbanked included the following:See the 2023 FDIC National Survey of Unbanked and Underbanked Households (PDF).
- They did not have enough money to meet minimum balance requirements.
- They did not trust banks.
- They said avoiding banks affords more privacy.
- Bank fees were too high or unpredictable for them.
An additional 19 million households were underbanked, according to the FDIC report. Underbanked households have a bank account, but many times they rely on alternative financial services such as money orders, check cashing services and payday loans rather than on traditional loans and credit cards to manage their finances.
The Bank On movement seeks to strengthen the financial stability of unbanked and underbanked individuals and families by promoting access to safe and affordable banking products and services. A way in which the movement reaches its target markets is by professionalizing, or building a formal structure around, banking access efforts for financial institutions and their customers. Critical to the professionalization of such efforts are high-quality data showing the engagement and usage of Bank On-certified accounts.
The Cities for Financial Empowerment (CFE) Fund provides a public certification seal for transactional consumer accounts offered by financial institutions that meet Bank On National Account Standards (PDF). Local coalitions and government leaders can rely on these certifications when choosing to highlight accounts available to residents in their area and when choosing partners for banking access programs. Additionally, financial institutions market their product-specific national certification seal to highlight that their accounts meet these standards. The CFE Fund also promotes Bank On-certified accounts by including them in Bank On marketing materials and in communications with local Bank On coalitions, as well as in its own program investments.
Bank On-certified accounts can serve as a gateway for financial institutions to reach unbanked and underbanked populations, bringing these consumers into the financial mainstream while establishing valuable new banking relationships. This benefits consumers who need accounts with low minimum required balances, those who previously left banks due to overdraft challenges, those looking for accounts with flexibility, or those who felt bank fees were too high and unpredictable. Bank On-certified accounts can provide a safe, affordable and functional banking experience that allows consumers to build or rebuild a relationship with a mainstream financial institution. Financial institutions offering Bank On-certified accounts are also poised to attract first-time customers, including young people and students. Such customers tend to build long-term banking relationships.
In addition, products certified as meeting Bank On National Account Standards support Community Reinvestment Act (CRA) service test examinations. Recent guidance from regulators around the CRA (PDF) highlights the availability of low-cost deposit accounts, the extent to which they reduce costs, and the degree to which services are tailored to meet the needs of low- and moderate-income (LMI) individuals.
The Bank On National Account Standards offer guidance for financial institutions to prioritize account offerings that highlight their commitment to:
- Meeting consumers’ and communities’ needs
- Connecting with banking access opportunities or programs
- Expanding their customer base
- Meeting regulatory requirements for community reinvestment
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