Atwater to Announce Statewide 'Bank On Florida' Program

Floridas Chief Financial Officer Jeff Atwater will introduce a statewide program on Thursday designed to help local financial institutions and community partners assist residents to access mainstream financial services and financial education.

Called Bank On Florida, the program is envisioned to help people open bank accounts through the reduction or elimination of traditional barriers, such as minimum balance requirements, difficulties with an account in the past such as unpaid overdraft charges, or lack of a U.S. drivers license or state-issued identification.

A goal of the program is to have banks tied in to Bank On Florida in all 67 Florida counties.

The announcement will be made at the City Hall, 175 Fifth St. North, St. Petersburg.

The following information is posted on the Bank On Florida website:

Based on successful models in about 100 cities around the country, Bank On programs hope to increase the financial stability of people living in the area by providing access to bank accounts and financial education. With an account at a bank or credit union, it can be easier to save for the future, manage money, and access credit and lower-interest loans.

In addition to deposit accounts, Bank On Florida will promote accessibility of funds using such banking vehicles as debit and prepaid cards, electronic transfer accounts, and small dollar loan programs. This ease of access plays an important role for many in transitioning from high cost alternative financial services into mainstream banking.

According to Bill Mills, Florida Prosperity Partnerships director of strategic initiatives, We are encouraging those across the state, without bank accounts, to join the Bank On program in their community. An account at a bank or credit union is an important part of building savings and, in turn, building financial stability. The partners in Bank On Florida have worked to offer products, services, and education that will help new account holders build successful and sustainable relationships with financial institutions.

According to the Federal Deposit Insurance Corp., more than 7 percent of all Florida households are unbanked, meaning no one in the household has any type of checking or savings account. In Florida, 18.2 percent of lower-income households (those households earning below $30,000 per year) have no banking relationship. For the U.S. as a whole, nearly 20 percent of households earning below $30,000 a year do not have bank accounts. The FDIC reports that 71.2 percent of all households without bank accounts in the U.S. earn less than $30,000 per year.

Many households without a bank account rely on alternative financial services such as check cashers, payday loan providers, pawn shops, and rent-to-own outlets. These establishments typically charge high fees for their services. In fact, an average unbanked household in Florida spends over $1,000 a year in fees for alternative financial services.

National data show that certain racial and ethnic minorities are more likely to not have bank accounts than the population as a whole. An estimated 21.7 percent of African-American households and an estimated 19.3 percent of Latino households do not have bank accounts.

The Bank On approach of inclusive community coalitions composed of local or state government, trusted community partners and leaders, and financial education providers have been successful in developing methods to help working families benefit from having transaction and savings accounts, says financial opportunities specialist Matt Pippin with the U.S. Department of the Treasury. He went to say, Bank On also provides important financial education opportunities. The Bank On movement, that the Treasury is working to support, is intended to build upon and enhance local community collaborative efforts.

A few reasons that people cite for not having a bank account include minimum balance requirements, difficulties with an account in the past, lack of appropriate identification, and feeling they dont have enough money or dont write enough checks. Bank On Florida has worked to reduce or eliminate those barriers.

Participating financial institutions will offer accounts with no or low minimum balance, no or low monthly maintenance fee, and free basic online services. Most partners will make a reasonable effort to open an account even if an individual has had difficulties with an account in the past, such as unpaid overdraft fees. Several partners will also accept alternative forms of identification.

There are many reasons for individuals and families to develop a solid banking relationship:

• Bank accounts help keep money safe from theft, fires, floods, and other natural disasters.
• Bank accounts also offer convenience through services such as direct deposit, ATMs, and the ability to write checks instead of waiting in lines to purchase money orders.
• Bank accounts can also save people money in check-cashing and money order fees.
• Finally, having a bank account can help people access other financial services in the future.