ONTARIO, Calif.–The California and Nevada Credit Union Leagues has entered into a partnership with Cities for Financial Empowerment Fund (CFE Fund) that encourages credit unions to begin offering Bank On certified deposit accounts.
The objective is toincrease the availability of safe, low-cost transactions for millions of unbanked and underbanked consumers, according to the leagues.
“Displaying a ‘Bank On’ certification is the right thing to do for the communities our credit unions serve. It aligns with our philosophy of financially empowering unbanked and underbanked individuals who don’t have any other local options,” said Diana Dykstra, president and CEO of the leagues. “Our industry has an opportunity to show state and federal legislators and regulators real numbers on local credit union involvement in this important endeavor, which policymakers are increasingly monitoring.”
The leagues said that once a credit union applies for and receives the Bank On certification for a transactional product, it “possesses an important tool to uniquely change a member’s life. Credit unions can welcome local underserved consumers into the financial mainstream to help them save money, potentially build credit history, and transact funds under their historically acclaimed and trustworthy banking services and philosophy.”
Data Aggregation Opportunity
In addition, the leagues said, local Bank On coalitions, elected officials, and other community stakeholders can confidently refer consumers to Bank On certified accounts, especially as they integrate banking access into large-scale public programs and payment streams.
“Many credit unions are already doing this,” the leagues said. “However, from a data-collection perspective, obtaining the Bank On account certification is a powerful way of aggregating the industry’s footprint in this area and showcasing to elected officials and local leaders that underserved banking communities can count on credit unions to manage their financial transactions, savings, and proactively educate them.”
‘Member-Centric Philosophy’
Credit unions receiving the account certification will be able to spotlight the member-centric philosophy they are already proving each day in the communities they serve, the leagues stated.
“Our state and federal political leaders across both states are examining multiple avenues to address the challenges faced by these consumers,” Dykstra said. “There is a heightened focus and interest by policymakers to ensure low-income and rural and unbanked communities are being served. While some credit unions already offer these types of accounts, becoming Bank On certified can help solidify and measure the safe and affordable banking options our industry offers local communities.”
The California and Nevada leagues noted the CFE Fund worked closely with financial institutions, federal regulators, community organizations, and other key stakeholders to develop Bank On National Account Standards.
“These standards provide local programs with a benchmark for account partnerships with financial institutions,” the leagues stated. “Bank On certified accounts provide safe, affordable, and functional banking that allows consumers to build or rebuild a relationship with a mainstream financial institution.”
CUs Encouraged to Showcase Seal
Dykstra said the CNCUL is encouraging credit unions to obtain the Bank On certification seal of approval for their accounts to help showcase what many of them are already doing for their communities.
“We are asking our industry to publicly demonstrate the good financial practices that we exemplify as legislators and regulators increasingly look to address unbanked and underbanked communities,” she said.
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