The Present and Future of Bank On Account Data: Pilot Results and Prospective Data Collection

Nearly 27 percent of U.S. households are unbanked and underbanked, which significantly constrains their ability to save reliably, access credit, and achieve other important financial goals. While past financial education and literacy efforts have raised awareness of these issues, there is mixed evidence on the overall effectiveness of such programs, with many studies finding little to no proven impact on consumer financial behaviors. The national Bank On movement seeks to professionalize banking access efforts across the country through supporting local coalitions, increasing the availability of safe and affordable banking products that meet Bank On National Account Standards, and helping connect unbanked and underbanked people to these products. Central to these professionalization efforts is reliable and consistent data demonstrating how consumers use these products. To this end, the Federal Reserve Bank of St. Louis and the Cities for Financial Empowerment Fund (CFE Fund) launched a pilot study in 2017 to demonstrate the takeup and usage of Bank On accounts with four financial institutions: Bank of America, JPMorgan Chase, U.S. Bank, and Wells Fargo. In addition, the pilot study tested how a centralized Bank On data collection process could operate before a national reporting platform is established for all financial institutions offering certified Bank On accounts. National Bank On account data reflects the maturation of this movement: Standardized, national data, aggregated by a federal regulator, allows stakeholders to better understand the market at the national, regional, and local levels. These data demonstrate the vibrant market for these accounts and can motivate current and future financial institution partners to offer accounts that meet the standards. It also underscores the success of local coalition efforts to connect unbanked people to accounts, and can spur the launch of new coalitions and new programmatic integration partnerships.