CFED Releases Report on Sustainability of Bank On Programs From a Financial Institution Perspective
CFED released new research for the Bank On field that, for the first time, explores the success and sustainability of Bank On programs from the perspective of the financial institution. The report, called Partnerships You Can Bank On: Sustainable Financial Institution Engagement in Bank On Programs, explores a key assumption underlying the Bank On model that financial institutions are able to serve these consumers in a way that is sustainable to their business operations. Because financial institutions are the scale platform for the Bank On model, their desire and ability to meaningfully participate in these programs over time is critical to the success and longevity of the Bank On approach.
Through extensive document review and interviews with financial institution executives and other Bank On stakeholders, CFED’s research finds that a piecemeal approach to engaging financial institutions in Bank On programs is not sustainable over time. Moreover, many financial institutions are unresolved as to whether or not Bank On participation truly presents a business opportunity, or if it is ultimately and primarily a charitable and community relations activity.
In the report, CFED offers ten recommendations for financial institutions, policymakers and local stakeholders to address these key issues. Read about them here.