Wednesday August 14, 2013
Bank On Louisville Celebrates Third Anniversary
Program helps citizens achieve financial stability
Local banks and credit unions, and other community partners gathered today to celebrate the successful third year of Bank On Louisville, a program that helps lower-income families and individuals achieve financial stability and success.
Bank On Louisville (BOL) is one of more than 70 “Bank On” institutions in the nation committed to connecting low- and moderate-income residents to mainstream financial services in order to avoid costly fringe financial services. It’s estimated that there are approximately 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.
Launched in July 2010, BOL is a community initiative -- led by Louisville Metro Community Services and Revitalization -- which also strives to increase the access of financial education offerings, including budgeting, debt-reduction and credit-building workshops. The newly developed Financial Empowerment Provider Network is moving financial education towards a more coordinated, system-wide effort to help ensure residents have access to consistent, quality workshops.
Sadiqa Reynolds, Metro’s Government’s Chief of Community Building, opened the celebration stressing the program’s community wide impact.
"Bank On Louisville’s initiatives help to create financially stable families who in turn can work to build assets and save for long-term goals,” Reynolds said. “Financially stable families then help to create stronger neighborhoods and stronger communities for us all.”
Ted Smith, the city’s Chief of Economic Growth and Innovation, also presented the vital connection between economic development and financial empowerment.
Bank On Louisville’s success at establishing partnerships has been the key to reaching the unbanked residents and connecting them with low-cost financial services. Seventeen banks and credit unions, and more than 100 community organizations, faith-based and government agencies, including Louisville Metro, FDIC and the Federal Reserve, work together on this initiative.
Bank On Louisville’s accomplishments for FY12-13 include:
- 3,493 new bank accounts were opened/12,886 overall for first three years
- 74% accounts have remained open with an average quarterly balance of $1,229
- 1,963 financial education participants engaged in topics that included budgeting, savings, and financial goal-setting/cumulative total of 3,656 since July 2011.
Charla Young -- long-time reporter/journalist in the Louisville area and president and CEO of Power to Change Communications -- served as emcee for the event carrying the message that “everyone has the power to change their circumstances”. Patty Avery, with the Consumer Financial Protection Bureau's Office of Financial Empowerment presented the agency’s role in implementing a national strategy to improve the financial literacy of consumers.
Special recognition was given to six financial institution partners for their financial sponsorship of Bank On Louisville -- Fifth Third, PNC, BB&T, Autotruck Financial Credit Union, Old National Bank and Your Community Bank – which provides sustainability of this initiative’s projects, outreach efforts and future goals.
The need for banking and financial literacy continues and Bank On Louisville is answering this challenge by establishing strategic goals for 2013-2014 including a 20% increase in account openings and a 100% increase in financial education participation. To learn more about Bank On Louisville and for a list of financial education opportunities, visit www.bankonlouisville.com
or call Metro Call 311.