WASHINGTON – The Obama administration is targeting $50 million in its budget for next year that would fund a nationwide “second chance” program for the unbanked modeled after the successful “Bank on San Francisco” program.
Bank on San Francisco offers second chance loans to people who may have bounced checks and offers low-cost deposit accounts to the unbanked. The program has proven so attractive that as many as 70 cities from Philadelphia to Memphis have enlisted local credit unions and banks in their own “Bank on” programs since the 2008 roll out of the San Francisco initiative.
In San Francisco credit union and bank participants agreed to offer low- or no-cost accounts, require no minimum balances, accept applicants who had previously bounced checks and those who don't have a state identification card or a passport, but have identification issued by certain foreign consulates.
It is not clear what form a national program might take, but many of the cities have dedicated advertising and marketing and recruiting resources to promote the credit union and bank participants.
