Bringing Affordable Banking to Richmond
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 dozens of coalitions in cities across the country; these first-generation banking access programs have already connected tens of thousands of people to safe and affordable accounts. 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.
Why is it important to initiate the Bank On program?
To integrate people who are currently unbanked and underbanked into affordable mainstream financial services, including checking, savings, and credit;
To provide access to financial education opportunities.
To assist low-to-moderate income families and individuals with tools for financial empowerment.
Financial Service Needs
- 2015 – 4.6% of all households (148,350) within the state of Virginia were unbanked
- 2015 – 19.7% of all households (635,325) within the state of Virginia were underbanked
- 2015 – 7.2% of all households (37,944) within the Richmond Metropolitan Statistical Area (MSA) were unbanked
- 2015 – 10.8% of all households (56,916) within the Richmond Metropolitan Statistical Area (MSA) were underbanked
[Burhouse, Susan. "FDIC National Survey of unbanked and underbanked households." FDIC. N.p., 2015. Web. 14 June 2017.]
Initial Target Population
Unbanked and underbanked people who do not have relationships/connections with mainstream financial institutions (no checking accounts), or people who may have accounts, but who do not use them for most of their day-to-day financial transactions.
People who use higher cost services of check cashers and payday lenders rather than the lower cost/affordable financial services offered by banks and credit unions.
Low-to-moderate income families and individuals that would benefit from financial education and resources available to assist with reducing expenses and providing access to mainstream financial products and services.