(bright music)
-: Good morning, good morning
Audience: Good morning.
-: This is the fun segment, so let's get the energy up.
Good morning.
Audience: Morning.
-: All right, so this is not believable.
I am here from DC to deliver some good news,
and it is to show you the incredible progress
we, you are all making on promoting financial inclusion.
So let's start with the good news-bad news story.
So the good news is, this shows you data from the FDIC,
we are at the lowest percentage of unbanked households
since the FDIC has begun reporting, 5.4%.
That's a great number, okay.
The opportunity though, you can see from this chart,
the rates among communities of color is much higher.
And it's really important
and that's why ABA is addressing some of the barriers
that's keeping these families
outside of the mainstream banking system
to send a clear signal to these families.
We want your business, our doors are open
and we have products that meet your needs.
We also wanna set up banks and consumers
for a successful, sustainable relationship.
So let me just review
how Bank On national accounts meet those needs.
So as Scott said, we believe that the best solution
for getting people banked is a private sector solution.
We have it, and we urge all of you, after this,
if you're not already offering a Bank On certified account,
to consider adding it to your menu of account offerings.
This is not the only account,
but it is a really good option to have
and it has widespread appeals.
We know these accounts work,
we're seeing progress every day,
and just a word about these national account standards.
They were created and are administered
by the Cities for Financial Empowerment Fund.
That's a nonprofit that's worked very closely
with community groups and regulators
to help address the last mile problem
and to address the pain points that consumers tell us
keep them out of the banking system.
Many of you probably already offer accounts
that meet these standards
and you may just need to get certified,
but they're designed in a particular way
that have broad-spread appeal.
It's also important that these accounts work for you
and your banks.
A short-term dormant account doesn't help anyone.
So as you can see from this data
that's compiled by the St. Louis Fed,
many of you who offer these accounts,
over 80% say that the people coming in,
over 80% of the customers who choose this account
are new to your bank and they're active.
They're making transactions, they're using these accounts,
and they're engaged customers.
So it's a win-win situation.
And now, for the big reveal,
I had an eighth grade English teacher
who always sent me back my essays and papers
and said, "Show, don't tell."
So I am going to follow my teacher's advice.
And today, I have the great pleasure
of showing you the incredible progress
that we've made since October, 2020
by unveiling our new Bank On dashboard.
And a quick shout out to the econ group at ABA
who spent countless hours putting this together
so that I get the pleasure of showing it to you.
So let me...
We're showing you screenshots
of a website that you can access yourself.
You just go to aba.com/bankon,
and this is an interactive dashboard.
Let me start by showing you the map
that shows the share of households by county
that's located near an institution
offering a Bank On account.
And what's especially cool about this
is that we're gonna show you the animation
that visualizes the progress made since 2020.
So a word, dark green is good, and so we're gonna start.
This shows you what our map looked like in 2015.
And now watch how more and more
Bank On has penetrated the country.
There's 17, 18, 19.
We got involved in late 2020.
Watch this.
2020,
2021.
Now this is the sort of data
that you can share with your lawmakers.
Bring your tablet, bring your laptop with you to the hill,
go onto aba.com/bankon, and you can show them this data.
If you can hover over your county,
I'll show you how to go state by state.
But by 2021,
financial institutions offering Bank On certified accounts
now comprise 56% of national deposit market share
in over 36,000 branches.
And keep this in mind.
This is just showing physical access.
By their nature, Bank On accounts are accessible to anyone
with a smartphone in their pocket
or access to a computer in their community.
The dashboard also allows you to drill down
to your state-level data.
This shows a screenshot of where the menu is.
There's the dropdown menu.
And now, I'm gonna spotlight the great Keystone state,
Pennsylvania.
In 2015, a little under half of all LMI households
were near a branch offering Bank On accounts.
Watch this.
2016,
2017,
2018,
2019,
2020,
2021.
99.6% of all households in Pennsylvania
are within spitting distance of a branch
and everyone has access through their smartphones.
This is unbelievable progress
and you all are making it happen across the country.
So a round of applause to you.
(audience clapping)
I also want to show you just a little of the other data
that's available on this website
in case this is of interest either to your bank
or to policy makers.
And this is how we're reaching out to make progress
to underserved communities.
And remember,
Bank On accounts should be available to everyone.
They have widespread appeal,
but they are designed to overcome the barriers to entry.
This just shows the incredible rise
in the number of Bank On accounts through branch networks,
just a steady steep growth.
We are now up 123% in the last year and a half
since we together started this initiative.
I should also mention it's really important.
The core service providers that so many of you rely on
to design and execute accounts are with the program.
We'd really like to thank them
for all work they've done with us and with the CFE fund.
So that's been really helpful.
This, this is my favorite slide
because the yellow or the gold,
I don't know how you see these graphs,
shows the incredible growth by asset size
among community banks.
And this is a really important slide
because it shows the enormous growth
of community banks participating in Bank On.
This, again, shows the share of LMI households
near a bank branch.
This may be of interest to the policy staff
that you meet with.
And then finally, we're making great progress.
There's still opportunity in rural areas
and you saw the map isn't deep green everywhere.
But even in rural areas, we've shown incredible progress.
56% in just the last year in terms of increases.
So what can you do?
Take action.
So, first of all, learn more about Bank On
and see if offering a Bank On certified account
is right for your bank and your community.
You may already be offering something similar.
We believe that the Bank On branding
is an important marketing tool
for you to signal to your communities who are unbanked
that you want their business.
It's a recognized seal.
Bank On also offers local and statewide coalitions
to help get you involved.
It's a great way and an easy way
for you to become more engaged in the community.
We know that these account standards have the blessing
of both regulators and community groups
and it's a terrific way to bring us together
and to make it clear and walk the walk.
A private sector solution is the way to get people banked
safely, effectively, and sustainably.
So thank you for all you've done to promote this program,
and I'm wearing my little Ask Me About Bank On sticker.
Find me, I'll be here for the next two days
and I love to talk about this.
So thank you all so much.
(congregation clapping)