Banking Relationships Build Stability and Access
Two Banks Reach Out to Low-Income Families
 |
| Moira Montgomery, Citizens Trust, Atlanta, partners with local churches to reach unbanked residents. |
"You can bank on it," or "You can take it to the bank," means something is certain or sure. Strong, secure, dependable….that's the image of banks. They keep our money safe, they provide loans and help us plan for the future.
It's easy to take banks, and the services they offer, for granted. But for the estimated 10 to 20 percent of the adult population who are "unbanked" – meaning they have no checking or savings accounts – banks can seem intimidating and out of reach.
There are many reasons a person has no checking or savings account. It can be due to a poor credit record, a divorce, a lack of trust, or embarrassment about not understanding banking or managing money. If a person has written bad checks or made late payments in the past, they may be listed in ChexSystems – a database used by banks and credit unions to screen new customers and reduce risks. Once a person is listed in ChexSystems, even if they correct the problem, their negative record lasts for five years.
Improving access to financial services is an integral part of the Casey Foundation's new, comprehensive approach to helping low-income families and neighborhoods connect with the mainstream economy. Called Family Economic Success (FES), the effort blends strategies for workforce development, family economic supports and community investment. As part of FES, the Casey Foundation provides funding to the Retail Financial Services Initiative, a three-year project of the National Community Investment Fund (NCIF). The initiative is working to expand access to financial services and wealth-building opportunities for low- and moderate-income consumers.
Continue: Atlanta Institution Reaches Out to Unbanked Residents >>