By Jorge Vazquez
Dec 24, 2023, 08:00 AM EST
UnidosUS, the nation’s largest Latino civil rights and advocacy organization, and Wells Fargo launched a program to promote Bank On certified accounts nationwide, transactional accounts that offer low or no fees, no overdraft fees and other affordable features.
The non-profit organization Cities for Financial Empowerment Fund (CFE Fund), which leads the national Bank On movement, will also collaborate as a program advisor and implementing partner: “Increased awareness of Bank On certified accounts will make opening and “Access to a secure bank account is easier for lower-income people in the Latino community.”
The awareness campaign aims to move towards a financial system that is more equitable, affordable and accessible to all, UnidosUS noted.
The latest survey from the Federal Deposit Insurance Corporation (FDIC) revealed that low-income people, African Americans, as well as millions of Latinos, are disproportionately underbanked.
The FDIC report also revealed that the overall unbanked rate hit an all-time low of 4.5%, as did the Latino unbanked rate, which stood at 9.3%, largely due partly to government benefits during the pandemic.
According to a recent report from UnidosUS, among the main barriers for Latinos to access a bank account are minimum wage requirements, lack of trust in financial institutions, and high account fees.
“Right now, we are seeing one of the lowest rates of unbanked and underbanked people in the country. However, with the expiration of pandemic-era programs such as the Child Tax Credit, we face a crucial and timely moment to continue breaking down barriers and continue making progress toward financial inclusion,” said Eric Rodríguez, Senior Vice President of Policy and UnidosUS Defense.
“The segment of Latino consumers who are not banked is a segment with a lot of potential for financial growth. UnidosUS is proud to collaborate with Wells Fargo on this initiative and we look forward to working with financial institutions and community organizations to find ways to reach these populations, Rodríguez added.
“We are excited to work with Unidos and the CFE Fund to help spread the word about additional, low-cost bank accounts for many unbanked and underserved Latinos. The need for collaboration to reduce the number of unbanked households remains a fundamental goal of the Wells Fargo Banking Inclusion Initiative,” said Michael Martino, Head of Diverse Segments for Consumer, Small Business and Business Banking at Wells Fargo.
Connecting to certified accounts that comply with the Bank On National Account Standard, developed and managed by the CFE Fund, constitutes a fundamental first step to access other products such as credit cards, auto loans or mortgage loans.
UnidosUS, the CFE Fund and Wells Fargo are implementing this program by identifying communities where there are high concentrations of unbanked Latinos, helping to increase awareness of Bank On certified accounts and connecting unbanked Latinos to these accounts and developing policies that can aid future efforts to reach the unbanked.
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