Bank Account or Burglary Prevention?
The FDIC announced the launch of the Milwaukee Alliance for Economic Inclusion in the beginning of the year. The intent is to increase bank access and expand delivery of financial services and products to underserved. However, having direct deposit can also significantly reduce your chance of being robbed or burglarized, an all too common occurrence for many low income families using check cashing services.
Safe & Sound is always interested in providing valuable resources to residents through door-to-door outreach and community meetings. Organizers will be including information on the Alliance for Economic Inclusion to residents over the next few months with the intent of linking secure banking with safety. Residents cashing checks and carry large amounts of money on their person are vulnerable. Likwise, keeping cash in your home is not advisable. Having a checking or savings account can reduce the risk for families already struggling to make ends meet.
The new alliance makes the argument that banks should reach out to people who have been left behind. Sandra Thompson is the Director of the Division of Supervision and Consumer Protection for the Federal Deposit Insurance Corporation in Washington, DC. She was in Milwaukee as the FDIC participated in the launch of the Milwaukee Alliance for Economic Inclusion. A WUWM radio broadcast promoted the opportunity and explained the benenfits.
The Milwaukee AEI coalition is comprised of 21 financial institutions and community-based partners, working collectively to provide affordable financial products, promote bank relationships and expand financial education efforts among low-income, unbanked and underserved families throughout the city of Milwaukee. The Milwaukee AEI joins FDIC’s national network of local coalitions around the country in 14 select markets. The coalitions are comprised of banks, community organizations, academics, government agencies and others that help underserved communities gain access to federally insured institutions. AEI is focused on unbanked and underserved populations in diverse markets across the country, including low- and moderate-income neighborhoods, urban neighborhoods, minority communities and rural areas.
According to the 2009 FDIC National Survey of Unbanked and Underbanked Households, an estimated 7.7 percent of U.S. households are unbanked, or approximately 17 million adults. Locally, the survey found:
- 9.7 percent of all households, or approximately 63,000, in the Milwaukee-Waukesha-West Allis, Wisconsin, Metropolitan Statistical Area (MSA), are unbanked.
- 12.5 percent of all households (an estimated 81,000) are underbanked. In addition, 0.9 percent of households (an estimated 6,000) may be underbanked, but their use of alternative financial services is unknown.
The Wisconsin Women’s Business Initiative Corporation is serving as the organizer of the coalition. “Financial institution partners will open accounts for consumers presenting an AEI checking and/or savings account certificate,” said Wendy K. Baumann, Chief Visionary Officer/President of WWBIC. By tying these accounts to financial education, we will create opportunities for more than 400 Milwaukee consumers to have sustainable banking relationships in 2011.”
For more information on financial services for the unbanked and underbanked go to www.economicinclusion.gov. For more information about the Milwaukee AEI, contact WWBIC at (414) 263-5450 or the FDIC Community Affairs Program at (800) 944-5343.
DOWNLOAD: AEI Flyer
