BANK ON EVERYONE IS WELCOME

What is Bank On? The Bank On initiative is a collaborative effort started by the City of San Francisco and the Federal Reserve Bank of San Francisco about three years ago to address the needs of their city’s unbanked and underbanked households. The Bank On program has spread throughout the country and is based on a collaborative effort with local communities and their financial institutions, local governments, community based and nonprofit organizations.

Florida Prosperity Partnership  St. Petersburg  Marion County (Ocala)  Jacksonville  Southwest Florida (October 2011) I NITIATIVES A LREADY B EGUN

Florida Prosperity Partnership  South Florida  Volusia/Flagler  Central Florida  Lakeland  Tallahassee/Big Bend U PCOMING C AMPAIGNS

Florida Prosperity Partnership ANK O N FL. ORG

National proportions of unbanked and underbanked households An estimated 7.7 percent of households, about 9 mm with at least 17 mm adults, are unbanked. An estimated 17.9 percent of households, about 21 mm with about 43 mm adults, are underbanked. Taken together, at least 25.6 percent of U.S. households, close to 30 mm households with about 60 mm adults, are unbanked or underbanked. FDIC National Survey of Unbanked and Underbanked Households

Un and Under Banked in Florida 7.0% of all households in Florida (an estimated 527,000 households) are unbanked. 18.2% of households with an annual income of $30,000 or less are unbanked. 24.2% of Black, 8.5% of Hispanic and 6.0% of other minority households are unbanked. 16.8% of all households (an estimated 1,270,000 households) are underbanked. In addition, 4.8% of households (an estimated 364,000 households) may be underbanked, but their use of alternative financial services is unknown. 21.7% of households with an annual income of $30,000 or less are underbanked. 27.1% of Black, 20.4% of Hispanic and 12.7% of other minority households are underbanked. FDIC National Survey of Unbanked and Underbanked Households

9 THE FDIC’s 2009 NATIONAL SURVEY OF UNBANKED AND UNDERBANKED HOUSEHOLDS  State of Florida Unbanked – 7.0 percent  National Unbanked – 7.7 percent FDIC National Survey of Unbanked and Underbanked Households

10 THE FDIC’s 2009 NATIONAL SURVEY OF UNBANKED AND UNDERBANKED HOUSEHOLDS  State of Florida Underbanked – 16.8 percent  National Underbanked – 17.9 percent FDIC National Survey of Unbanked and Underbanked Households

Characteristics of Unbanked Households more likely to be unbanked than the population as a whole are those: With a black, Hispanic non-black, or American Indian/Alaskan householder; or Where Spanish is the only language spoken at home; or With a householder that is a foreign-born noncitizen; or That are family households with an unmarried female or male family householder; or Earning less than $30,000; or With a householder holding less than a high school degree; or With a householder under age 45. FDIC National Survey of Unbanked and Underbanked Households

Unbanked households’ reasons for wanting to open an account FDIC National Survey of Unbanked and Underbanked Households

Why are people “unbanked”? Fear of minimum balance requirements Lack of understanding about fees and other charges Mismanagement of past accounts Fear of stringent ID requirements Cultural or generational distrust of financial institutions Lack of basic knowledge/financial education Unbanked households are usually clustered in lower socio-economic neighborhoods and poor rural areas

Immigrant Banking Needs In some countries banks are not safe, secure or trusted. Immigrants will be concerned about FDIC insurance and about ready access to their funds Many send money back to family members in their home country. They may be interested in wire transfer costs. Some lack SSN’s and will be interested in knowing about alternative forms of ID (e.g. matricula consular cards) Because of language barriers, some may be uncomfortable writing checks. They will be especially interested in other options, like debit cards and online banking

Senior Banking Needs 15% of Seniors and disabled still receive Social Security benefits by paper check March, 2011, all new Social Security recipients, Veterans and Railroad pensions will only be available through direct deposit. March, 2013, all beneficiaries will be converted to direct deposit. Safety and funds availability are primary concerns to Seniors.

Banking Needs of Americans with Disabilities Demographics 54 million people 22 million families Employment 22.0 million working age 7.6 million employed 12.9% unemployed (4/09) Geography 15% in the Northeast 31% in the South 28% Midwest 16% West Ethnicity 12.7% White 17.5% Black/African American 21.7 Native American 6.3% Asian/Pacific Rim 11.9% Other --Cornell 2008 Disability Status Report

What is my role? As a service provider/nonprofit neighborhood based organization, you will be asked about the Bank On program and will be providing information and referrals to your unbanked clients.

What do we want our clients to know? Everyone is welcome and can open a low-cost account! Some individuals who have had issues with their bank account in the past may be required to attend financial education classes and make restitution for past unpaid account fees. Checking and savings accounts help people save money and keep it safe. Learning how to manage money is an important step towards financial success.

What else do want them to know? The Bank On is not a bank! It is a coalition of banks and credit unions offering low cost checking and savings accounts to new customers. Everyone has a choice of which participating financial institution they would like to open account. It is important that each person “shop” for the financial institution and account products that best fit their financial needs.

And What Else? When your clients visit a bank or credit union to open an account, the branch staff will have received training on working with the unbanked and underbanked customers. It is important to encourage your clients to ask questions and ask for additional information if they are unsure about the terms of the account.

Encourage your clients to save One of the best ways to keep low wage workers from utilizing pay day lending services, rent to own, refund anticipation loans and other alternative financial services is to encourage the establishment of a savings account with automatic deposits. Encourage clients to open savings account and have a portion of their direct deposit pay automatically deposited into their savings.

Help with a Second Chance Clients who are on Check System or have had past banking issues should be referred to a financial institution that participates in the Second Chance program. You will be provided with a current class schedule and contact information for referrals.

Don’t hide your money at home. Open an account at a bank or credit union. Keep you and your money safe.

You will learn:  How to keep your account records  How to choose a bank or credit union and an account that is right for you  How to develop your spending and saving plan

How you can help Bank On succeed Make sure everyone in your organization is familiar with Bank On Jacksonville Tell other agencies, community organizations, faith based organizations and neighborhood groups about the program Volunteer to host and teach financial education classes Provide direct deposit accounts to all of your employees and encourage them to bank and save. Let us know about personal success stories of your clients Volunteer to speak about your organization’s experience at Bank On events.

Questions? Thank you for being part of the Bank On Janet Hamer Senior Community Development Manager