Helps low-to-moderate income families
LOUISVILLE, Ky. (Aug. 12, 2014) — Mayor Greg Fischer will join local banks and credit unions, and other community partners to celebrate the successful fourth year of Bank On Louisville, an initiative that helps low-to-moderate income families and individuals achieve financial stability and success. The event will take place on Aug. 13 between 10 – 11:30 a.m. at Metro United Way’s Community Room at 334 E. Broadway, 2nd Floor.
Launched in July 2010, Bank on Louisville is a community initiative — led by Louisville Metro Community Services — that has helped thousands of individuals connect to free or low-cost starter or “second chance” checking accounts. Bank On also strives to increase the access to financial education offerings throughout the community, including budgeting, debt reduction, credit-building workshops and financial goal-setting.
In 2009, a FDIC National Survey estimated that there were more than 76,000 unbanked or under-banked households in Louisville, and that fees from high-cost check-cashers, predatory lenders and other alternative financial services can add up to more than $40,000 over the working lifetime of one individual.
Bank On Louisville’s accomplishments for FY13-14 include:
- 3,257 new checking accounts were opened with a total of 16,143 opened since 2010
- 70 percent accounts have remained open with an average quarterly balance of $1,363
- 6,532 individuals have participated in financial education, with a total of 10,188 participants since July 2011
“For a majority of Louisvillians, a task like cashing a paycheck or making a rent or utility payment is quick and easy, by check, by card, or by ATM”, Fischer said. “But for someone without a checking account, turning a paycheck into cash or sending that cash in a money order to pay a bill is an entirely different picture. A bank or credit union account can also be the first step in money-management, building credit and planning for the future.”
Bank On Louisville is one of more than 80 “Bank On” initiatives in the nation, including six other cities and communities in Kentucky, committed to connecting low- and moderate-income residents to mainstream financial services in order to avoid costly fringe financial services.
Bank On Louisville’s success at establishing partnerships has been the key to its growth and sustainability. Nineteen banks and credit unions, and more than 100 community organizations, faith-based and government agencies, including Louisville Metro, the FDIC and the Federal Reserve, work together on this initiative.
Bank On Louisville has also served as a cornerstone in bringing our community other national recognition including Louisville becoming the twelfth member of the Cities for Financial Empowerment (CFE) Coalition in 2012. In 2013, Metro Community Services was invited to become a lead local organization for the Corporation for Enterprise Development’s (CFED) Assets and Opportunity Network. And earlier this year Louisville Metro Government formed a new partnership with the National Disability Institute and shared in hosting an Economic Advancement Assembly.
Also spotlighted at the celebration will be the work of Leadership Louisville’s “Team NewStart”, a group of eight emerging leaders who contributed over 1,000 volunteer hours and secured over $45,000 in primarily in-kind contributions to support the Bank On Louisville initiative. The team’s major accomplishments included:
- Developed a new tagline, “Learn. Save. Grow”, after testing with focus groups
- Pro bono video production with the Mayor, produced by John Flower Productions
- Pro bono ad placement in TARC buses
- New Bank On Louisville mobile phone app, designed by V-Soft Consulting, which will be launched soon.
Special recognition will also be given to eight financial institution partners for their financial sponsorship of Bank On Louisville — Fifth Third, PNC, BB&T, Autotruck Financial Credit Union, Central Bank, Jefferson County Federal Credit Union, Old National Bank and Your Community Bank – which provide sustainability of this initiative’s projects, outreach efforts and future goals.
Another added feature at the Aug. 13th event is the Fifth Third E-Bus will be parked at Metro United Way between 10 a.m.-2 p.m. Free services are open to the public including credit counseling, help viewing a credit report or opening an account, and job search counseling.