St. Louis Fed Releases the Bank On National Data Hub Findings from 2021

The Bank On National Data Hub: Findings from 2021 report analyzes 2021 data from 28 financial institutions and found that more than 14 million Bank On-certified accounts have been opened, a 67% increase from the previous year. Of those, 3.4 million were opened in 2021; Bank On accounts have been opened in more than 35,000 ZIP codes, or 85% of all U.S. ZIP codes, according to an updated report from the Federal Reserve Bank of St. Louis.

An estimated 4.5% of U.S. households—about 5.9 million—were unbanked in 2021, according to the Federal Deposit Insurance Corp. report. Unbanked means these households did not have checking or savings accounts at a traditional bank or credit union. The Bank On movement aims to increase safe and affordable banking options and bring the underbanked and unbanked into the financial mainstream. With new financial institutions submitting data this year, overall Bank On-certified accounts almost doubled relative to a year ago.

Other findings include:

• Nearly 110 million debit transactions were processed per month for Bank On account holders. That’s an average of over 28 debit transactions per account holder per month, creating a total monthly average of over $4.4 billion in debit transactions.Debit transactions can help account holders avoid fees and service charges from credit cards and help them stay accountable with their spending.
• More than 12,000 new Bank On-certified accounts were opened at community financial institutions, a roughly 50% increase over the 8,000 new Bank On account openings in 2020.
• Account holders continue to engage services provided by Bank On-certified accounts. Over $82 billion was deposited into these accounts in 2021 for an average of 6.5 deposits per month, and 36% of account holders used direct deposit. The average monthly balance per account increased to $1,072, and 83% of account holders were digitally active.

“The Bank On movement to increase safe and affordable banking and bring the underbanked and unbanked into the financial mainstream continues to be a key priority,” said Daniel Paul Davis, vice president of Community Development and Community Affairs officer at the St. Louis Fed.

The St. Louis Fed and Cities for Financial Empowerment Fund established the Bank On National Data (BOND) Hub to present metrics from financial institutions related to account openings, account usage and consistency, and online access.

About Bank On

Bank On coalitions are locally led partnerships between local public officials; city, state, and federal government agencies; financial institutions; and community organizations that work together to help improve the financial stability of unbanked and underbanked individuals and families in their communities, including by connecting them to the 300+ Bank On-certified accounts. The Cities for Financial Empowerment Fund’s Bank On national initiative builds on a grassroots movement of over 90 coalitions in cities across the country, offering National Account Standards, capacity grant support, pilot funding, and a learning community. In addition to connecting unbanked individuals to accounts, Bank On programs raise public awareness, target outreach to the unbanked, and expand access to financial education. More information about Bank On and the National Account Standards can be found online and by following the conversation on Twitter @CFEfund #BankOn.