CHAIRMAN’S C O LU M N
Bank On Arkansas+ A Beacon of Hope
Jim Taylor | Chairman | Arkansas Bankers Association
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n today's fast-paced world, financial inclusion and access to affordable banking services are essential for economic stability and prosperity. Unfortunately, many
individuals and families across our state are still excluded from the traditional banking system. They rely on expensive alternative financial services like payday loans and check-cashing stores, which can trap them in a cycle of debt. This is where the Bank On Arkansas+ program steps in. This initiative, supported by the Arkansas Bankers Association and the Federal Reserve Bank of St. Louis and many others, aims to provide accessible and affordable banking solutions for the unbanked and underbanked residents of our state with Bank On accounts being offered by 28 banks in Arkansas. Here are a few key points about the Bank On Arkansas+ program: 1. Access to Banking Services: The program partners with local banks to offer safe, low-cost accounts that are designed to meet the financial needs of people, who might otherwise not have access to traditional banking services. 2. No Minimum Balance Requirements: One of the primary features of these accounts is that they have no or minimal balance requirements. This means that anyone, regardless of their income level, can open and maintain an account without the fear of hefty fees. 3. Direct Deposit and Debit Cards: Account holders can set up direct deposit for their paychecks, providing a safer and more convenient way to access their earnings. They also receive debit cards, which make everyday transactions like shopping and bill payments hassle-free. 4. Financial Education: The program doesn't stop at providing bank accounts. It also offers financial education and resources to help individuals manage their money more effectively, save for the future, and build their credit. 5. Community Partnerships: The success of the program lies in its strong partnerships with local community organizations, churches, and government agencies that work together to reach and educate potential account holders. As a result of these cumulative efforts the most recent information available indicates the number of unbanked Arkansans fell to 3.4%.
4 • WINTER 2023
So, why is the Bank On Arkansas+ program so important? 1. Economic Inclusion: By providing access to affordable banking services, this program helps Arkansans join the financial mainstream. It empowers individuals to save for the future, access credit, and build a stable financial foundation. 2. Reduction of Financial Vulnerability: People without bank accounts are often vulnerable to predatory lending practices. With these accounts, they can avoid high fees associated with check cashing and payday loans. 3. Strengthening Communities: A financially stable community benefits everyone. When more people have access to banking services, it reduces the reliance on social safety nets, as individuals and families are better equipped to manage their own finances. An often-missing tool in the financial literacy tool box is Broadband. Access to Broadband networks is critical in fostering digital financial literacy. The Bank On Arkansas+ program is a beacon of hope for many residents who have struggled with financial exclusion. It is a powerful tool for fostering economic stability and prosperity across our great state. By offering accessible, affordable banking solutions and promoting financial literacy, this initiative contributes to the well-being of our communities and paves the way for a brighter financial future for all Arkansans. If your bank offers Bank On Arkansas accounts, thank you! If you don’t offer Bank On Arkansas accounts I encourage you to consider it, so that more of our fellow Arkansans can enjoy the benefits of economic inclusion and financial empowerment.
“If you don’t offer Bank On Arkansas accounts I encourage you to consider it, so that more of our fellow Arkansans can enjoy the benefits of economic inclusion and financial empowerment.”
