Country's Top Banking Regulators Celebrate Growth of National Safe Banking Partnership

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Cities for Financial Empowerment Fund

May 23, 2023, 09:00 ET

At The Cities for Financial Empowerment Fund's 2023 Bank On National Conference, FDIC Chairman Gruenberg and OCC Acting Comptroller Hsu deliver keynote addresses to hundreds of field stakeholders

WASHINGTON, May 23, 2023 /PRNewswire/ -- Today at the largest conference in the banking access field, keynote addresses by Federal Deposit Insurance Corporation (FDIC) Chairman Martin J. Gruenberg and Office of the Comptroller of the Currency's (OCC's) Acting Comptroller Michael J. Hsu – two of the nation's top federal banking regulatory agencies – highlighted Bank On movement progress. The Cities for Financial Empowerment Fund (CFE Fund) hosted the 2023 Bank On National Conference at the National Press Club in Washington, DC. There are now over 375 Bank On nationally certified accounts, offered by banks and credit unions representing over 60% of the domestic deposit market; more than half (53%) of all US bank branches offer a Bank On certified account. Federal and state agencies, ranging from the FDIC to the Internal Revenue Service to state Departments of Labor, are pointing consumers to Bank On accounts to receive payments, as are local programs across the country. There are 100 local Bank On coalitions working to advance this national movement, including an increasing number of statewide coalitions.

(PRNewsfoto/Cities for Financial Empowerment Fund)

"The role of federal agencies like the FDIC and the OCC in the exponential growth of the Bank On movement and the larger banking access efforts across the country can not be overstated," said Jonathan Mintz, President and Chief Executive Officer of the Cities for Financial Empowerment Fund. "Chairman Gruenberg and Acting Comptroller Hsu's leadership, and the critical work of the agencies they lead, have paved the way for multi-sector success, with financial institutions, local coalitions, government leaders, and advocates all working together to expand access to safe banking. With national unbanked rates at their lowest numbers ever recorded, we know our joint efforts to move the market towards safe banking for everyone literally is moving the needle on a critical national anti-poverty priority."

The FDIC's latest 2021 National Survey of Unbanked and Underbanked Households found that US unbanked rates are at the lowest recorded level ever. The data shows that in 2021, only 4.5% of U.S. households were unbanked, down from 5.4% in 2019. Since the last 2019 report, 1.2 million households have joined the mainstream financial system. Most notably, 35% of recently banked households reported that receiving a government benefit payment (like unemployment or a pandemic stimulus payment) contributed to opening a bank account, a key Bank On and federal regulator strategy to help people get banked. In addition, the growth of the Bank On certified market has ensured that people still in need of a mainstream banking account are in close proximity to branches offering certified accounts: the American Bankers Association (ABA) found that 95.5% of low- and moderate-income Americans live near at least one bank branch that now offers a Bank On certified account.

The national conference brings together key stakeholders from multiple sectors across the country: local Bank On coalition program leads and their community partners, Mayors, city administrators, tribal governments, financial institutions large and small, federal banking regulators, national nonprofit organizations, philanthropic partners, consumer advocates, and more. In addition to the keynote addresses from Chairman Gruenberg and Acting Comptroller Hsu, plenary sessions included those on the client journey, the promise of state-led Bank On coalitions, and young adult banking; and breakout sessions on marketing, overcoming account opening barriers, and movement myth-busting.

"Since 2015, Bank of America has been part of the Bank On movement that is committed to providing safe and affordable banking access to clients across the country," said Christine Channels, Head of Community Banking and Consumer Governance at Bank of America. "We're pleased to see the continuation of this important certification of our Advantage SafeBalance Account under the CFE Fund's Bank On National Account Standards."

"According to the FDIC, a record number of U.S. Households were banked in 2021," said Brandee McHale, Head of Community Investing and Development at Citi and member of the FDIC Committee on Financial Inclusion. "This progress didn't just happen by accident. It has come from growing recognition of the importance of expanding access to banking and credit in low-income communities and communities of color. Through intentionality and multi-sector collaboration, the banking industry can continue to effectively move the needle on financial inclusion."

"As a company, we're committed to helping more people access the mainstream banking system which opens pathways to long-term financial stability and wealth building," said Bonnie Wallace, Head of Financial Health Philanthropy at Wells Fargo. "It's been a privilege to be a part of the Bank On movement and we're especially proud of our Bank On Fellowship Program. Working together with CFE Fund, we've built a multi-city national network of Bank On coalition leaders and we're piloting new strategies to remove barriers that limit people from participating in the U.S. economy, which is essential for a more equitable society."

Bank On works to ensure that everyone has access to safe and affordable financial products and services. The Bank On National Account Standards identify critical product features for appropriate bank or credit union accounts, making it easier for local coalitions across the country to connect consumers to accounts that meet their needs. Core account features include low costs, no-overdraft fees, robust transaction capabilities such as a debit or prepaid card, and online bill pay.

The CFE Fund leads the national Bank On movement, supporting local coalitions working to connect individuals and families to the financial mainstream through partnerships between local governments, financial institutions, and community organizations. To learn more about Bank On click here, or follow the conversation on Twitter @CFEfund #BankOn.

About the Cities for Financial Empowerment Fund (CFE Fund)

The CFE Fund supports municipal efforts to improve the financial stability of households by leveraging opportunities unique to local government. By translating cutting-edge experience with large-scale programs, research, and policy in cities of all sizes, the CFE Fund assists mayors and other local leaders to identify, develop, fund, implement, and research pilots and programs that help families build assets and make the most of their financial resources. The CFE Fund is currently working in over 100 cities and has disbursed over $59 million to city governments and their partners to support these efforts. For more information, please visit www.cfefund.org or follow us on Twitter at @CFEFund.

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. The Bank On national initiative builds on a grassroots movement of 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.

Media Contact:
Andy Dueñas
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813-775-6213

SOURCE Cities for Financial Empowerment Fund