Twenty core technology providers -- including Fiserv, FIS, Jack Henry and Associates and Finastra -- recently committed to simplify the process for their bank clients to create and offer a Bank On-certified account.
First inspired by the FDIC’s Safe Account Pilot, the Bank On National Account Standards were created by national nonprofit organization the Cities for Financial Empowerment Fund—or CFE Fund—and are widely supported by consumer advocates and the financial services industry. Key account features include low costs, no overdraft fees, robust transaction capabilities such as a debit or prepaid card, and online bill pay.
In its 2019 Bank On National Data Hub report, the St. Louis Federal Reserve noted that “the demand and use of Bank On accounts is strong and continues to grow,” with more than 3.4 million accounts opened to date across just 10 reporting institutions. Bank On accounts, which can provide CRA service credit for banks, not only bring new customers into the banking system (75% of Bank On accounts opened in 2018 were opened by new customers), but the accounts “perform in a manner consistent with that of a bank’s existing customer base and at similar costs.” Find out more.