Bank On Michigan is part of a nationwide Bank On movement aiming to connect unbanked individuals and families with high-quality financial products through a relationship with a formal financial institution like a bank or credit union. The Bank On Michigan campaign launched in late 2009 and is currently designing and implementing programs in the cities of Detroit, Lansing, and Kalamazoo.
The Bank On concept argues that local governments can leverage their resources to engage with local financial institutions to offer products and services to the unbanked, many of whom would traditionally be excluded from formal products due to poor credit history, a ChexSystems record, and other barriers to a banking relationship. The first Bank On program was designed by the city of San Francisco and began in 2006. By 2009, Bank On San Francisco helped 18,000 city residents open bank accounts. The average account balance of these accounts was $976 and the program has achieved an estimated total savings of $19,802,400.
The Bank On programs in Michigan are currently in early phases of implementation, but the programs have the potential to help many unbanked Michigan residents open a savings and/or checking account and make important steps toward building savings and financial security.
For more information on Bank On, please visit the Join Bank On Website.