Te unbanked and underbanked represent two distinct groups. Te unbanked are individuals who do not have a bank account. Underbanked adults have bank accounts but also use alternative financial services, such as check- cashing services or payday loans. A Federal Reserve report that focused on the economic well-being of U.S. households in 2020 found 18% of Americans were unbanked or underbanked.


Tere is a mistrust of banks among those who are unbanked and underbanked, said Karen Helm with Montgomery Bank in Des Peres. In her role as the bank’s community development officer, Helm speaks frequently to community groups about the importance of money management, savings, budgeting and credit. She said many have not been taught about services available through a bank or had an experience with a financial institution. One instance stands out.


Helm participated in a St. Louis event in which the featured speaker was Olympic gold medalist and


hometown native Jackie Joyner-Kersee.


“Growing up, she was never exposed to a bank. She didn’t know she could have a checking account,” Helm said. “Some do not have this experience with their family.”


Family is the core of Montgomery Bank, whose founder, Joe Montgomery Sr., “instilled in every employee to treat our customers as you would treat family.” Tis means providing products and services to meet financial needs of all individuals.


“It doesn’t matter where you are financially, we have products to get you where you want to be, and we’re here to assist with that endeavor,” Helm said.


In February, the bank launched its New Start Checking program. Tis no-fee account “allows customers to learn and re- establish financial footing,” Helm said.


“Tis is a much more affordable option than the alternatives,” she said. “A check-cashing facility takes a percentage of a check


cashed. Customers can keep more money in their pockets with the bank, and they are able to monitor their account activity without the exorbitant fees others charge.”


Currently, there are 61 New Start Checking accounts throughout the bank’s market — 17 accounts in Cape Girardeau, 19 in St. Louis and 25 in Sikeston. Te account has been certified by Bank On, which means the account meets account standards established by Bank On National Account Standards. Tese standards outline criteria for opening accounts, deposits, ATM access, maintenance fees and nonsufficient funds, among others. More than 100 financial institution accounts nationally are certified as meeting the Bank On National Account Standards.


Tis includes the Second Chance Checking available through Guaranty Bank in Springfield. Te bank launched Second Chance Checking in April and is consistently opening two to three accounts each week, said Stephanie Rutledge, executive vice president and chief administrative officer.


“Some customers may not be able to use one of our traditional checking products because of their previous banking history,” Rutledge said. “Second Chance Checking is an affordable solution for consumers rebounding from financial challenges.”


Customers appreciate Second Chance Checking because they have easy access to manage their money.


“If you don’t have a bank account, you go to multiple places to handle your finances,” Rutledge said. “With this account, customers access their money with a debit card and use online banking to pay their bills and view their activity. It’s a streamlined process that they appreciate.”


Across the nation, many of the unbanked and underbanked live in areas where there are no financial institutions. Instead, these areas may have numerous payday lending or check- cashing facilities. In St. Louis, Midwest BankCentre is empowering people, enabling business and energizing neighborhoods through its financial services.


THE MISSOURI BANKER 15


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32