St. Louis Fed Releases the Bank On National Data Hub Findings from 2023

ST. LOUIS — The Bank On National Data Hub: Findings from 2023 report analyzes 2023 data from 44 financial institutions and found that more than 11 million Bank On-certified accounts were open. Bank On accounts have been opened in more than 37,000 ZIP codes, or 89% 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 241 million debit transactions were processed per month for Bank On account holders. That’s an average of over 31 debit transactions per account holder per month, a 16% increase over 2022. Total monthly transactions averaged over $10.5 billion in debit transactions – substantially higher than in 2022. Debit transactions can help account holders avoid fees and service charges from credit cards and help them stay accountable with their spending.
• More than 29,000 new Bank On-certified accounts were opened at community financial institutions.
• Account holders continue to engage services provided by Bank On-certified accounts. Over $174 billion was deposited into these accounts in 2023 for an average of 7.5 deposits per month, and 36% of account holders used direct deposit. The average monthly balance per account increased to $1,195.

“Having access to safe and readily available funds is critical to all households, particularly the under- and unbanked. The St. Louis Fed promotes financial inclusion as an important step for building broader economic participation,” 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 400+ Bank On-certified accounts. The Cities for Financial Empowerment Fund’sBank On national initiative builds on a grassroots movement of over 100 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 X.com @CFEfund #BankOn.