Creating a Safe Account for Unbanked Manhattan Residents

Unbanked Manhattan residents are concerned about the cost of having a bank account and are worried they may be denied an account because they have made financial mistakes in the past. Others believe that without a Social Security card they are not eligible for an account. Some think they do not make enough money to have a bank account, or are intimidated by a traditional banking environment.

To directly address these concerns, participating banks agreed to the following baseline criteria:

• Offer a low or no-cost product with no minimum balance requirement. The high minimum balance requirements and fees of many accounts is a key factor keeping people out of the financial mainstream.
• Reduce the barriers to entry by offering low minimum initial deposit requirements. No participating institution requires an opening balance greater than $25.
• Have an opt-in policy for Courtesy Overdraft Protection or offer an ATM card that does not allow customers to overdraw their accounts.
• Adapt internal systems to allow customers with a poor banking history to open "second chance" checking accounts.
• Accept alternative forms of identification as primary ID. For many immigrants, the barrier to opening an account is having the proper documentation.
• Expand marketing and outreach strategies in targeted, low-income neighborhoods, and increase the visibility of appropriate products in Manhattan.