Too many households in Sacramento – 14 percent – do not have a checking or savings account. Even among those households that do, a full 23 percent still also use predatory financial services such as payday loans and check cashing. This means they are paying way too much in fees just to access their own money.
Bank On is a national effort to reduce these numbers in regions across the country. In 2015 Bank On became an effort of Cities for Financial Empowerment. CFE has created a set of account standards that financial institutions should meet to become a Bank On partner.
In 2016 our United Way was selected for a Bank On capacity grant, which we are using to form partnerships with various local public agencies to link Bank On with the case management work of their benefit programs. The aim is to help more people to obtain and use highly affordable and accessible mainstream checking and savings accounts and avoid predatory financial services. We are now working with local banks and credit unions to help them get the Bank On seal of approval from CFE for their existing or in-development products. Once we have a list of local financial institution partners and products, our public agency partners will use that for their referrals.
Stay tuned for an official launch of our local Bank On program later this year!