An initiative to help banks put out a welcome mat to low-income households that don’t use banking services is being considered in Clark County.

The push is called “Bank on Clark County,” and it will follow the basic structure of “Bank On” programs that are developing in dozens of communities. It started with Bank on San Francisco in 2006, a program that now has 170 participating banks and credit unions. In Washington, “Bank On” programs are already under way in Cowlitz County, which was part of a national pilot study about the concept, and in Seattle/King County.

A statewide coalition is helping to coordinate local efforts using a grant from the state Department of Commerce, under the umbrella of a larger set of programs to help low-income people better save and manage their money.

The coordinated “Bank On” programs aim to help low-income families tap into the services of banks and credit unions that either have been unavailable or uninviting to them. Establishing a relationship with a financial institution will help low-income families and individuals reduce costs for financial services, and could put them on course for saving for future needs, program advocates say.

“Getting a car and a home loan is out of the question if you don’t have a relationship with a bank,” said Denise Rodriguez, Bank on Washington initiative manager at the Washington Asset Building Coalition. “From an asset-building perspective, it really is the first step to building financial stability.”

Craig Lyons, director of the Council for the Homeless in Vancouver, said the city asked members of Clark County’s own asset-building coalition to take the lead in launching a local “Bank On” initiative. The coalition hosted a meeting with banking officials late last month, and the group will meet again this week to try to push the idea forward.

While the statewide organization will provide a basic template and support to Clark County and other communities, “Bank On” is largely built on particular local needs and relationships between service agencies and banks.

Some banks, for instance, could reduce service fees for customers who come in through the program. Others could decide to accept identification cards from Mexico or other nations rather than requiring proof of American citizenship. Others could have programs that give a second chance to people unable to get banking services due to past financial problems. The effort would be promoted through social service agencies and a unified advertising campaign.

“A lot of people in our community have bad feelings about banks,” Lyons said. “We believe this is an opportunity to turn them around and show that they care, because I believe they do.”

Some bankers at last month’s informational meeting said they support the program, but that banks are unlikely to make much money from low-income customers who sign up through the “Bank On” initiative, simply because these customers have so little money. Others believe that, in the long run, a Bank on Clark County would bring in customers who would remain loyal as their incomes rise.

Sharif Burdzik, vice president and Salmon Creek branch manager for Riverview Community Bank, is actively involved in the initiative, which he believes will help both banks and the community.

“The fees for banking and nonbank financial services have disproportionately hit the portion of our community that can least afford them,” he said. “From the community standpoint, I want to see people pay less for basic services.

“From the banking perspective, it’s also the right thing to do, and it’s a market that banks aren’t tapping into yet.”

Print this article