admin
“We’ve never done anything like this in Kansas City before,” said Julie Riddle, senior issue manager of United Way of Greater Kansas City.
Called, “Bank on Save Up Kansas City,” the initiative officially launched June 4 and is a collaborative effort between area banks, non profit organizations, private and government entities.
The concept originated in San Francisco, Calif., to encourage the underbanked and unbanked to take advantage of their banking institutions. Kansas City, however, is adding another component.
“Ours is different because we’re stressing not only the checking and transaction accounts, but savings accounts and financial education to help people save and set short-term and long-term goals,” Riddle said.
Asked why it’s important to offer this program, Riddle said, “I think it’s important because the FDIC did a study in 2009 about the number of unbanked and underbanked people in the Kansas City metro area and they estimated 151,000 don’t have a relationship with a bank.”
Another 128,000 people have relationships with banks but use other options like cash checking businesses and pay day loans, Riddle said.
“This connects people with regulated financial institutions where they can access their money at little or no cost,” she said.
It also allows Kansas Citians to build their credit history and take advantage of investment products like certificates of deposit and money market accounts, she added.
Currently, 18 area banks are signed up to participate, including several in Northeast: Central Bank of Kansas City, 2301 Independence Blvd., Commerce Bank, 804 E. 12th St., Holy Rosary Credit Union, 533 Campbell, and UMB Bank, 6400 Independence Ave. A number of banks are waiving their monthly maintenance fee and one insufficient funds fee for Bank On Save Up accounts.
United Way is the fiscal agent and is serving on the steering board, as well as acting as the referral source for residents about participating banks.
The two-year model program’s goal is to open 3,000 new accounts with 80 percent of those accounts remaining open after one year and enroll 1,000 new savers in Kansas City Saves.
Once the two years are up, the program will be re-evaluated.
-
