adminJoin the Southeastern Credit Union Foundation on Dec. 2 from 10 a.m. to 11 a.m. ET to learn about the national Bank On initiative and how credit unions may be able to participate. The webinar will also address challenges faced by the underbanked and what credit unions can do to help.
“With almost 30% of U.S. households being unbanked or underbanked, a basic transaction account is an important first step in establishing a mainstream banking relationship,” said Juli Lewis, director of the Southeastern Credit Union Foundation. “Those individuals are not able to deposit earnings securely, access credit, and save for the future. By being a part of the Bank On initiative, low to moderate families seeking the way to financial capability will be made aware of the products and services that your credit union offers and help to put them on the right path to financial success.”
The Challenge:
Research from the Federal Deposit Insurance Corporation shows that there are many reasons consumers lack a basic transaction account: not enough money for the minimum balance; distrust of financial institutions; high or unpredictable fees; or identification, credit or banking history problems. Many Americans are driven to use expensive alternative financial services, including check cashers, payday lenders, and pawn shops that charge high fees for financial services that fail to help people get ahead. Without a checking account, families wind up paying too much for basic financial transactions and are hard-pressed to build savings and assets.
The Solution:
The Cities for Financial Empowerment (CFE) Fund works directly with national and regional financial institutions to encourage the widespread availability of safe, low cost transactional products.
One key challenge facing unbanked and underbanked individuals has been a lack of safe and appropriate accounts offered by mainstream financial institutions, particularly those without overdraft.
The CFE Fund has worked closely with the Bank On National Advisory Board and other key stakeholders to develop the Bank On National Account Standards. Inspired by the Federal Deposit Insurance Corporation’s Model Safe Accounts Template, these standards provide local programs with a benchmark for account partnerships with financial institutions, including their local partners.
Register in advance for the meeting here. After registering, you will receive a confirmation email containing information about joining the meeting.
