Coalition works to expand banking access in underserved communities
MALVERN — One in 10 Arkansas households does not have a bank account. Of those that do, more than 22 percent rely on costly services to access their own money or cover monthly basics like rent, utilities, food and medicine — paying more to just get by.
Recognizing that these individuals often fall victim to highrisk, costly financial situations that trap them in a cycle of debt, dependency and potential poverty, the Arkansas Asset Funders Network seeded a coalition to ensure that underserved Arkansans have access to banking options that help improve their financial outlook.
According to the Federal Deposit Insurance Corp., the No. 1 reason people do not have a bank account is that they believe they “don’t have enough money” to open and maintain an account. This concern is sometimes compounded by individuals’ fear of encountering high and unpredictable fees, including overdraft fees. The Bank On Arkansas+ Coalition is working to promote that banks create “safer” accounts that are free or low-cost and have no to low opening deposit requirements and no overdraft fees.
Bank On Arkansas+ will officially launch on Nov. 1 with a press event at the University of Arkansas at Little Rock. On Nov. 2 and 3, local community events will take place around
to highlight financial services and partners in specific communities.
“The University of Arkansas at Little Rock is pleased to be included in the coalition of partners supporting the mission of the Arkansas Asset Funders Network’s Bank On Arkansas+ initiative. I applaud their efforts to serve the unbanked and underbanked in promoting financial literacy and relationship building with trusted financial institutions and community partners. Our missions are aligned in our intention to elevate lives through education,” said Andrew Rogerson, chancellor of the UALR, in the press release.
Currently, six financial institutions in Arkansas have nationally certified Bank On accounts: Bank of America, Diamond Lakes Federal Credit Union, IBERIABANK, Southern Bancorp, US Bank and Wells Fargo. Others are in the process of having their accounts certified — Citizens Bank, First Community Bank, First Security Bank and Simmons.
According to Tammy Passafiume, president/CEO of Diamond Lakes Federal Credit Union, in the release, “Having the opportunity to partner with the Bank On Arkansas+ Coalition is an incredible opportunity for Diamond Lakes Federal Credit Union. Our credit union has always worked to serve the members of our community with products and services that are not available in most traditional financial institutions. So developing a safe, low-cost, consumer-friendly account that meets the Bank On certification requirements was a natural fit for us. We are not only grateful for what this partnership means for the communities we serve, but proud to join the family of financial institutions that have lead the way while being the third credit union in the nation to offer a certified Bank On account.”
It’s the community nonprofit partners who will help their low- and moderate-income clients understand this new Bank On option and navigate opening accounts.
“Community action agencies seek to promote household stability and movement towards economic security among lowto moderate-income Arkansans, while also supporting positive community initiatives through strategic partnerships,” said Terry Bearden, interim chief operations office for Arkansas Community Action Agencies Association Inc. “The community action agencies in Arkansas look forward to providing referrals to participating local financial institutions as part of their strategic approach to meeting local needs and promoting positive family and community outcomes.”
Recognizing that bank accounts are just a first step in helping people become more financially stable, the Bank On Arkansas+ initiative is working with “Plus Partners” that are able to offer additional services such as financial education and coaching, credit building, debt repair, microloans and small business development.
“Financial capability services are designed to help people solve issues, build relationships with financial institutions and grow their wealth. We want to help the single mom who needs to save money on her car payments by improving her credit score. We want to help the college graduate create a plan for repaying his student loans as he begins his first job. It takes partnerships between financial institutions and financial capability providers to help our neighbors build a brighter financial future,” said Alden Napier, executive director of Credit Counseling of Arkansas.
Bank On Arkansas+ is supported by sponsorships from ARVEST, Carl B. and Florence E. King Foundation, Cities for Financial Empowerment Fund, Entergy Arkansas, First Security Bank, IBERIABANK, Regions Bank and Southern Bancorp.
“Entergy Arkansas sees Bank On Arkansas+ as a tremendously beneficial initiative for those of our customers who live under tough financial circumstances,” said Tom Kennedy, vice president of regulatory and public affairs for Entergy Arkansas. “Having a bank account opens doors and protects people from financial predators. We’re proud to support a program with so much potential for improvements in the lives of those who need it most.”
The coalition is continually accepting partnership opportunities from financial institutions, nonprofits and other organizations that want to engage in the Initiative. To request more information, please email Stephanie Matthews, director of Bank On Arkansas+, at stephanie@assetfunders.org.
Bank On Arkansas+ is a special project of the Arkansas Asset Funders Network. Arkansas AFN is a regional chapter of grantmakers who invest in opportunities for low- and middle-income individuals and families to build economic well-being. Members include private, public, corporate and community foundations, public-sector funders and financial institutions who want to help Arkansans secure economic stability, for now and for years to come. For more information, visit http:// www.assetfunders.org.