Tuesday Topic: Bank On Movement

We have created a Bank On account.  Since it is being pushed by the FDIC and the ABA, we decided that it wouldn't hurt, and might help.  Ironically, it will have the highest monthly fee of any of our "no minimum balance required" accounts.  Our clientele is largely Low-Moderate income and minority, and if it will help them manage their spending and control their fees better, we wanted to give that alternative.  We've been certified, but haven't "launched" the account yet.  If we get any "Brownie points" from regulators, that won't hurt either.  We just thought it was worth a try.

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Mary Fowler
Chief Executive Officer
The Peoples Bank
Magnolia, AR
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Original Message:
Sent: 08-30-2021 13:26
From: Barb Rehm
Subject: Tuesday Topic: Bank On Movement

As the saying goes, the best defense is a good offense and the ABA's Bank On Movement strikes me as a brilliant way to show skeptics the industry is serious about banking everyone. This is not a new program, but it is timely given the rise in political pressure on banks. Bank On accounts are low-cost, basic accounts that meet standards created by the Cities for Financial Empowerment Fund. According to the ABA, roughly 70 banks offer Bank On accounts. As the ABA sees it, by signing up "your bank will demonstrate your commitment to financial inclusion, while also adding new customers in the process."

So, my question is this: why have so few banks signed up? Do you agree these accounts are a smart way to blunt criticism that banks aren't inclusive enough? If your bank wants to sign up, click here.

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Barb Rehm
Senior Managing Director
IntraFi Network
Arlington VA
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