Collaboration makes it easier for banks to earn certification for Bank On National Account Standards, aimed at reducing the number of unbanked and underbanked Americans
Jack Henry & Associates, Inc.® (NASDAQ: JKHY) is a leading provider of technology solutions and payment processing services primarily for the financial services industry. Its Jack Henry Banking® division announced today that, as part of an American Bankers Association (ABA) initiative, it has committed to equipping banks nationwide with Bank On-certified accounts. These accounts are designed to serve the unbanked and underbanked population with modern banking services, including robust transaction capabilities such as debit or prepaid cards and bill pay – all at a low cost and without overdraft fees.
According to the FDIC National Survey of Unbanked and Underbanked Households, millions of Americans still operate their everyday lives and businesses on the sidelines of the financial mainstream. The Bank On movement aims to extend access and improve financial stability for Americans across the country. More than 40 banks offer Bank On-certified accounts today, including Jack Henry client Indiana, Pa.-based First Commonwealth Bank. Jack Henry will deliver the guidance, tools and resources to make certification easier for all of its core bank clients.
Norman J. Montgomery, executive vice president of First Commonwealth Bank, commented, “We are proud to be an early member of the Bank On movement, providing the underserved in our communities with the tools necessary to improve their financial health. Offering a certifiably secure and trusted way to manage finances can help bring individuals and their businesses new opportunities and advantages. It’s an important step in caring for and building our communities, which are inclusive of people of all backgrounds and socioeconomic status.”
ABA President and CEO, Rob Nichols, added, “We deeply appreciate Jack Henry’s support for this important initiative. By simplifying the process for their bank customers to offer Bank On-certified accounts, Jack Henry will make it easier for Americans across the country to gain access to the banking system and the significant benefits that come with it.”
Jack Henry will provide banks with detailed guidance on meeting Bank On requirements, as well as documentation, e-learning opportunities and consulting services. Bank On National Account Standards were created by national nonprofit organization the Cities for Financial Empowerment Fund (CFE Fund) and are widely supported by consumer advocates as well as the financial services industry.
Stacey Zengel, senior vice president of Jack Henry & Associates and president of Jack Henry Banking, added, “There has been progress made around financial inclusion over the years, but there is still much work to be done. By rallying together, fintechs, associations and bankers can make a meaningful impact and lend a helping hand to unbanked and underbanked people and business across the country. Many banks may find that they are offering services similar to the Bank On Account Standards already; this movement will give them the extra credibility and awareness to be even more impactful, while inspiring more banks to rise to the occasion.”
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