WASHINGTON, Dec. 14,
2023 /PRNewswire/ -- UnidosUS—the nation's
largest Latino civil rights and advocacy organization and Wells
Fargo are launching a program to promote Bank On nationally
certified accounts, transaction accounts that offer low or no fees,
no overdraft charges, and other accessible features. The nonprofit
Cities for Financial Empowerment Fund (CFE Fund), who leads the
national Bank On movement, also will partner as a program advisor
and implementing partner. Increased awareness of Bank On certified
accounts will make opening and accessing a safe banking account
more attainable to lower income individuals in the Latino
community. The awareness campaign aims to make progress toward a
more equitable, affordable, and accessible financial system for
all.
The latest survey by the Federal Deposit Insurance Corporation's
(FDIC) found that low-income people and people of color are
disproportionately unbanked, including millions of Latinos. The
FDIC's report also found that the overall unbanked rate reached a
historical low of 4.5%, as did the Latino unbanked rate at 9.3% due
in large part to pandemic era government benefits. Latinos' biggest
barriers to accessing a bank account included minimum balance
requirements, lack of trust in financial institutions and high
account fees according to a recent report by UnidosUS.
"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 to break down barriers and
make further progress towards financial inclusion," said
Eric Rodriguez, Senior Vice
President, Policy and Advocacy, UnidosUS. "The Latino unbanked
consumer segment is one with a lot of potential to grow
financially. UnidosUS is proud to collaborate with Wells Fargo on
this initiative and we look forward to working with financial
institutions and community-based organizations to find ways of
reaching these populations."
"We're excited to work with Unidos and the CFE Fund to help
spread awareness of low-cost, affordable banking accounts for many
unbanked and underserved Latinos. The need for collaboration to
reduce the number of unbanked households remains a critical focus
for Wells Fargo's Banking Inclusion Initiative," says Michael Martino, head of Diverse Segments for
Wells Fargo's Consumer, Small and Business Bank.
Connections to accounts certified as meeting the Bank On
National Account Standards, developed and managed by CFE Fund,
provides a critical first step towards accessing other products
such as credit cards, auto loans, or mortgage loans. UnidosUS, the
CFE Fund, and Wells Fargo are launching this program by identifying
communities in which there are high concentrations of
unbanked Latinos, help to increase awareness of Bank On certified
accounts and connecting unbanked Latinos with these accounts, and
develop policy that can support future efforts to reach the
unbanked.
"While the overall unbanked rate is decreasing nationally, Bank
On coalitions and other partners know that over 9% of Latinos are
unbanked – there is still work to be done to ensure that everyone
is connected to a safe and affordable bank or credit union
account," said David Rothstein,
Senior Principal at the Cities for Financial Empowerment
Fund. "There are over 400 banks and credit unions with
accounts meeting the CFE Fund's Bank On National Account Standards,
representing over 60% of the national deposit market share. We're
thrilled to partner with UnidosUS and Wells Fargo to test
strategies to grow awareness of Bank On products for unbanked
Latinos."
About UnidosUS
UnidosUS is a nonprofit,
nonpartisan organization that serves as the nation's largest
Hispanic civil rights and advocacy organization. Since 1968, we
have challenged the social, economic, and political barriers that
affect Latinos through our unique combination of expert research,
advocacy, programs, and an Affiliate Network of nearly
300 community-based organizations across the United States and Puerto Rico. We believe in an America where
economic, political, and social progress is a reality for all
Latinos, and we collaborate across communities to achieve it. For
more information on UnidosUS, visit unidosus.org or
follow us on Facebook, Instagram, and Twitter.
About Wells Fargo
Wells Fargo & Company (NYSE: WFC) is a leading
financial services company that has approximately $1.9 trillion in assets, proudly serves one in
three U.S. households and more than 10% of small businesses in the
U.S., and is a leading middle market banking provider in the U.S.
We provide a diversified set of banking, investment and mortgage
products and services, as well as consumer and commercial finance,
through our four reportable operating segments: Consumer Banking
and Lending, Commercial Banking, Corporate and Investment Banking,
and Wealth & Investment Management. Wells Fargo ranked No. 47 on Fortune's 2023 rankings
of America's largest corporations. In the communities we serve, the
company focuses its social impact on building a sustainable,
inclusive future for all by supporting housing affordability, small
business growth, financial health, and a low-carbon economy.
About the Cities for Financial Empowerment Fund (CFE
Fund)
The CFE Fund supports municipal efforts to
improve the financial stability of households by leveraging
opportunities unique to local government. By translating
cutting-edge experience with large scale programs, research, and
policy in cities of all sizes, the CFE Fund assists mayors and
other local leaders to identify, develop, fund, implement, and
research pilots and programs that help families build assets and
make the most of their financial resources. The CFE Fund is
currently working in over 100 cities and counties representing 75
million people, and has disbursed over $64
million to city governments and their partners to support
these efforts. For more information, please visit www.cfefund.org
or follow us on Twitter at @CFEFund; learn more about the Bank On
movement at www.joinbankon.org.
Contact:
Elsa Rainey, news@unidosus.org
Aryel Bell,
aryel.bell@wellsfargo.com
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SOURCE UnidosUS