BANK ON EVERYONE IS WELCOME

1. BANK ONEVERYONE IS WELCOME

2. What is Bank On? • The Bank On initiative is a collaborative effort started by the City of San Francisco and the Federal Reserve Bank of San Francisco about three years ago to address the needs of their city’s unbanked and underbanked households. • The Bank On program has spread throughout the country and is based on a collaborative effort with local communities and their financial institutions, local governments, community based and nonprofit organizations.

4. Initiatives Already Begun • St. Petersburg • Marion County (Ocala) • Jacksonville • Southwest Florida (October 2011)

5. Upcoming Campaigns • South Florida • Volusia/Flagler • Central Florida • Lakeland • Tallahassee/Big Bend

6. www.BankOnFL.org

7. What is my role? • Your bank or credit union has chosen to participate in your community’s Bank On initiative. • Your branch has been identified as a “Bank On” branch and it is anticipated that you will be working with unbanked consumers.

8. What do we want our new customers to know? • Everyoneis welcome and can open a low-cost account! • Checking and savings accounts help people save money and keep it safe. • Learning how to manage money is an important step towards financial success.

9. National proportions of unbanked and underbanked households • An estimated 7.7 percent of households, about 9 mm with at least 17 mm adults, are unbanked. • An estimated 17.9 percent of households, about 21 mm with about 43 mm adults, are underbanked. • Taken together, at least 25.6 percent of U.S. households, close to 30 mm households with about 60 mm adults, are unbanked or underbanked. FDIC National Survey of Unbanked and Underbanked Households

10. Characteristics of Unbanked • Households more likely to be unbanked than the population as a whole are those: • With a black, Hispanic non-black, or American Indian/Alaskan householder; or • Where Spanish is the only language spoken at home; or • With a householder that is a foreign-born noncitizen; or • That are family households with an unmarried female or male family householder; or • Earning less than $30,000; or • With a householder holding less than a high school degree; or • With a householder under age 45. FDIC National Survey of Unbanked and Underbanked Households

11. Unbanked households’reasons for wanting to open an account FDIC National Survey of Unbanked and Underbanked Households

12. Why are people “unbanked”? • Fear of minimum balance requirements • Lack of understanding about fees and other charges • Mismanagement of past accounts • Fear of stringent ID requirements • Cultural or generational distrust of financial institutions • Lack of basic knowledge/financial education • Unbanked households are usually clustered in lower socio-economic neighborhoods and poor rural areas

13. Immigrant Banking Needs • In some countries banks are not safe, secure or trusted. Immigrants will be concerned about FDIC insurance and about ready access to their funds • Many send money back to family members in their home country. They may be interested in wire transfer costs. • Some lack SSN’s and will be interested in knowing about alternative forms of ID (e.g. matricula consular cards) • Because of language barriers, some may be uncomfortable writing checks. They will be especially interested in other options, like debit cards and online banking

14. Senior Banking Needs • 15% of Seniors and disabled still receive Social Security benefits by paper check • March, 2011, all new Social Security recipients, Veterans and Railroad pensions will only be available through direct deposit. • March, 2013, all beneficiaries will be converted to direct deposit. • Safety and funds availability are primary concerns to Seniors.

15. Banking Needs of Americans with Disabilities Demographics 54 million people 22 million families Employment 22.0 million working age 7.6 million employed 12.9% unemployed (4/09) Geography 15% in the Northeast 31% in the South 28% Midwest 16% West Ethnicity 12.7% White 17.5% Black/African American 21.7 Native American 6.3% Asian/Pacific Rim 11.9% Other -- Cornell 2008 Disability Status Report

16. 10 Commandments of Etiquette for Interacting with People with Disabilities 1. When talking with a person with a disability, speak directly to that person rather than through a companion or sign language interpreter. 2. When introduced to a person with a disability, it is appropriate to offer to shake hands. People with limited hand use or who wear an artificial limb can usually shake hands. (Shaking hands with the left hand is an acceptable greeting.) 3. When meeting a person who is visually impaired, always identify yourself and others who may be with you. When conversing in a group, remember to identify the person to whom you are speaking. 4. Don't be afraid to ask questions when you're unsure of what to do. If you offer assistance, wait until the offer is accepted. Then listen to or ask for instructions.

17. Ten Commandments continued 5. Treat adults as adults. Address people who have disabilities by their first names only when extending the same familiarity to all others. 6. Leaning on or hanging on to a person's wheelchair is similar to leaning on hanging on to a person and is generally considered annoying. The chair is part of the personal body space of the person who uses it. 7. Listen attentively when you're talking with a person who has difficulty speaking. Be patient and wait for the person to finish, rather than correcting or speaking for the person. If necessary, ask short questions that require short answers, a nod or shake of the head. Never pretend to understand if you are having difficulty doing so. Instead, repeat what you have understood and allow the person to respond. The response will clue you in and guide your understanding.

18. Ten Commandments continued 8. When speaking with a person who uses a wheelchair or a person who uses crutches, place yourself at eye level in front of the person to facilitate the conversation. 9. To get the attention of a person who is deaf, tap the person on the shoulder or wave your hand. Look directly at the person and speak clearly, slowly, and expressively to determine if the person can read your lips. Not all people who are deaf can read lips. For those who read lips, be sensitive to their needs by placing yourself so that you face the light source when speaking. 10. Relax. Don't be embarrassed if you happen to use accepted, common expressions such as "See you later," or "Did you hear about that?" that seem to relate to a person's disability.

19. How you can help the unbanked • Encourage customers to sign up for free financial education classes through the participating nonprofit agencies. • Volunteer to teach or assist at financial education classes. • Understand that some customers may not directly ask for a Bank On product, but will ask for the “unbanked program”, “free banking” etc.

20. How you can help the unbanked • Your financial institution has agreed to be part of the Bank On program in your community. • You will be helping customers open basic or low cost checking and/or savings accounts. • Refer any customer unable to open account with your institution to another institution, or back to the Bank On program as appropriate, for help.

21. How you can help your new customers • Educate each customer on how to succeed with their new account • Make sure the client understands the account • Instruct customer on the rights and responsibilities of properly managing a checking account: • Explain all fees associated with the account • Explain “opt in” for overdrafts and emphasize high cost of overdrafts. Encourage your customers to carefully consider the consequences of overdrafts on ATM and debit card transactions. • How to properly use debit card • Use of ATMs and how to avoid costly fees for use of out of network ATMs • How to reconcile and keep track of account balances • Paper • Electronic (including mobile phone alerts etc) • How to pay bills • Write checks • Use electronic banking

22. Encourage customers to save • One of the best ways to keep low wage workers from utilizing pay day lending services, rent to own, refund anticipation loans and other alternative financial services is to encourage the establishment of a savings account with automatic deposits. Encourage customers to open savings account and have a portion of their direct deposit pay automatically deposited into their savings.

23. Help with a Second Chance • Help clients with negative banking history get back on the path to success • Work with client to contact and arrange payment plans for outstanding account issues and help clients contact Chex System and order their report. • Monitor Bank On accounts to ensure clients are managing their accounts and refer to financial education opportunities and other assistance through the Bank On Initiative. • If you are unable to open an account for them, explain their options and provide an appropriate referral. No client should be turned away without being provided with referrals to either 211, your Bank On Coordinator, or, if applicable, another financial institution.

24. How you can help Bank On succeed • Make sure everyone in the branches knows about Bank On and can assist clients in positive choices • Schedule training for staff in targeted branch locations • Use Bank On materials in employee areas to help raise awareness • Send emails to staff to raise awareness of program • Provide training to new staff

25. Spread the word about Bank On • Attend outreach events in the community • Look at your nonprofit or business clients and offer to host trainings and provide direct deposit accounts to their employees • Let us know about personal success stories of your clients • Volunteer to speak about your financial institution’s experience at Bank On events.

26. Account Tracking • Track unbanked clients and report data each quarter • Use tracking codes to make sure we count all eligible clients • Track as much information as possible • Account openings and closings • Balances • Number of overdrafts

27. Questions?Thank you for being part of Bank On Janet Hamer Senior Community Development Manager Janet.hamer@atl.frb.org 904-632-3588