Washington, D.C. — BPI President and CEO Greg Baer today released the following statement in anticipation of the House Financial Services Subcommittee on Consumer Protection and Financial Institutions hearing on “Banking the Unbanked”:
“The Bank On program, which connects banks with unbanked and underbanked consumers, has shown notable success in expanding access to low-cost, no-overdraft bank accounts, particularly in predominantly minority and low-income communities. Currently, more than 100 banks, comprising 52 percent of national deposits, offer Bank On certified accounts. During 2019, the most recent data available, those banks added nearly 2 million new Bank On certified accounts.
As described in a BPI blog post published this week by SVP of Research Paul Calem, new data suggests that Bank On take-up is greater in places with a larger concentration of unbanked households. In particular there is a significant positive correlation between rate of Bank On account openings and the proportion of unbanked households across states – suggesting that the program reaches the communities that need it most, and that it has the scale to make a meaningful impact on financial inclusion. Policymakers should encourage broader use of the program, which enables underserved Americans to build financial stability and security for their families.”
About Bank Policy Institute.
The Bank Policy Institute (BPI) is a nonpartisan public policy, research and advocacy group, representing the nation’s leading banks and their customers. Our members include universal banks, regional banks and the major foreign banks doing business in the United States. Collectively, they employ almost 2 million Americans, make nearly half of the nation’s small business loans, and are an engine for financial innovation and economic growth.
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