ICBA's Anti-Credit Union Effort Intensifies, as FDIC Announces Unbanked Pilot Program

The FDIC is testing a “GetBanked” campaign in Houston and Atlanta to try to attract unbanked people to open a checking account at member banks.

“The goal of this targeted, pilot campaign is to support financial empowerment by encouraging consumers to consider opening a checking account that can result in access to safer and lower-cost financial products,” the FDIC said in announcing the pilot program.

The agency said it chose the two cities based on research that found Black and Hispanic households in those cities are disproportionately unbanked.

“Having a basic checking account can be an important first step to becoming part of the financial fabric of this country,”  FDIC Chairman Jelena McWilliams said. “I know from my personal experience that starting a banking relationship can offer a greater sense of belonging and expand economic opportunities.”

The agency is touting its BankFind tool and said that organizations, such as the Independent Community Bankers of America and the American Bankers Association, have bank locator tools as well.

The FDIC said its effort to the get the unbanked to open checking account began as a way to encourage people to open an account to facilitate the delivery of the coronavirus economic impact payments through direct deposits.

The agency noted that many FDIC-insured banks offer accounts with no or low monthly maintenance fees when people have direct deposit or maintain a minimum balance. And agency officials said that once people establish a relationship with a bank, they can consider other financial products.

The FDIC cited arguments that are similar to those presented by credit unions and their trade groups.

For instance, the NCUA has a mycreditunion.gov website designed to explain the difference between banks and credit unions. It also features a credit union locator service to help consumers locate a credit union they may join.

The FDIC pilot program announcement came amid renewed efforts by banking trade groups, including the ICBA, to convince Congress to reexamine the credit union tax exemption. The ICBA and NAFCU recently sent dueling letters to members of Congress presenting their respective arguments.

And the community banking group is using the recently announced purchase of Heritage Southeast Bank of Jonesboro, Ga., by VyStar Credit Union in Jacksonville, Fla., as ammunition.

“VyStar Credit Union in Jacksonville, Fla., this week said it is leveraging its tax exemption and crossing state lines to purchase a $1.6 billion community bank in Jonesboro, Ga. — eliminating a locally based lender and further consolidating the banking industry,” the ICBA said following the announcement.