GLENDALE, Calif.–California Credit Union is reporting its checking account has been certified by the Cities for Financial Empowerment Fund (CFE Fund) as meeting the benchmark Bank On National Account Standards.
The account, which the credit unions said can benefit the nearly 19% of California households that are categorized as underbanked or unbanked, is now among those similarly certified for four credit unions in Los Angeles and 15 credit unions in California.
According to the $4.5-billion California CU, its Option Checking offers safe access to a traditional checking account, with zero fees or overdraft charges “to support moving members out of a debt cycle.”
The account provides a free debit card, along with access to online and mobile banking, individualized financial counseling, financial education tools, and 30,000+ surcharge-free ATMs nationwide.
‘Inclusive Banking’
“We believe a core aspect of our cooperative mission is inclusive banking, ensuring everyone in our communities has equal access to safe, affordable banking products and services that build financial stability and long-term financial health,” said President/CEO Steve O’Connell. “This Bank On certification will support our work in making traditional financial products available to unbanked and underbanked community members outside of the mainstream financial system. We are excited to lead the way in this key initiative in Southern California, and look forward to working with local coalition partners to ensure all individuals can bank, save, and borrow with a trusted financial partner, supported by financial education tools to assist in life-long financial success.”
A ‘Key Challenge’
The credit union noted a “key challenge” facing unbanked/underbanked individuals has been a lack of safe and appropriate accounts offered by mainstream financial institutions.
“Without a checking account, many use high-fee alternative services, including check cashers, payday lenders and pawn shops, paying far too much for basic financial transactions and losing the ability to build savings, assets, and a strong credit history,” CCU said.
CCU also offers a full suite of financial education and literacy resources; last year alone, virtual programs reached over 26,000 individuals and in-person events provided over 750 people with financial literacy training.
Nearly One-Fifth are Underbanked
In announcing the certification, California CU cited a FDIC 2021 survey that found nearly 19% of households in California are categorized as underbanked or unbanked. In addition, 4.5% of all U.S. households are categorized as unbanked, without a checking or savings account, and over 14% of U.S. households are underbanked, meaning they use non-traditional financial services, the credit unions said.
California CU has approximately 171,000 members.
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