UnidosUS, the nation’s largest Latino civil rights and advocacy organization and Wells Fargo launched a program designed to make progress toward a more equitable, affordable and accessible financial system for all.
The latest survey by the Federal Deposit Insurance Corporation’s (FDIC) found that low-income people and people of color are disproportionately unbanked, including millions of Latinos. The FDIC’s report also found that the overall unbanked rate reached a historical low of 4.5%, as did the Latino unbanked rate at 9.3% due in large part to pandemic era government benefits.
“Right now, we are seeing one of the lowest rates of unbanked and underbanked people in the country. However, with the expiration of pandemic-era programs, such as the Child Tax Credit, we face a crucial and timely moment to continue to break down barriers and make further progress towards financial inclusion,” Eric Rodriguez, senior vice president, Policy and Advocacy, UnidosUS, said.
“We’re excited to work with Unidos and the CFE Fund to help spread awareness of low-cost, affordable banking accounts for many unbanked and underserved Latinos. The need for collaboration to reduce the number of unbanked households remains a critical focus for Wells Fargo’s Banking Inclusion Initiative,” Michael Martino, head of Diverse Segments for Wells Fargo’s Consumer, Small and Business Bank, said.
“While the overall unbanked rate is decreasing nationally, Bank On coalitions and other partners know that over 9% of Latinos are unbanked – there is still work to be done to ensure that everyone is connected to a safe and affordable bank or credit union account,” David Rothstein, senior principal at the Cities for Financial Empowerment Fund, said. “There are over 400 banks and credit unions with accounts meeting the CFE Fund’s Bank On National Account Standards, representing over 60% of the national deposit market share. We’re thrilled to partner with UnidosUS and Wells Fargo to test strategies to grow awareness of Bank On products for unbanked Latinos.”
