Bank On building a better N. Idaho

In Idaho’s five northern counties, more than 21,000 households are living on a bare-bones survival budget as measured by the United Way ALICE Report of financial hardship. There is no margin for savings or emergency funds in a survival budget, which means a blown tire or broken heater can plunge an ALICE family into crisis.

There are a lot of reasons why so many households are walking a financial tightrope, just as it will take a variety of solutions to remedy, but one approach is to help our neighbors build assets to buffer those unexpected expenses with the use of traditional banking.

Bank On North Idaho began with people from banks, credit unions, and social service organizations around the United Way conference table in the fall of 2017. The end goal: create pathways for North Idahoans to access mainstream checking and savings accounts, coupled with a high quality financial education program delivered in collaboration with social service organizations, to lay a strong foundation for community financial wellness. We knew about 20 percent of residents in North Idaho are either unbanked — no access to a checking or savings — or underbanked, meaning they had some access but relied on alternative services. Many of these residents have made financial mistakes or had negative experiences with bank accounts in the past, so may have different needs or obstacles than traditional bank customers.

Often considered the “on-ramp” to financial stability, a bank account provides a family with the means to save and make the basic financial transactions necessary for day-to-day life. Without it — and the other services a mainstream financial institution can offer — households often rely on costly alternatives. Think of check cashing, money orders, and payday loans.

The Bank On network is a coalition of financial institutions — Idaho Independent Bank, Mountain West Bank, Northwest Bank, Potlatch First Federal Credit Union, US Bank, Washington Trust Bank, and Wells Fargo — that each offers a checking account option to underbanked citizens, a financial investment in the program, and volunteers to teach classes and engage the community. The accounts they offer to Bank On participants are low- or no-cost, have clear and thorough disclosures of fees, and low opening balance requirements.

Financial institution staff are trained to facilitate financial education workshops, to listen for cues from new customers that might indicate past banking troubles, and to be attuned to perceived and actual barriers customers may have to engaging in banking relationships.

Participants complete a series of two workshops that cover essential money management skills as the foundation for asset-building. Beyond income, assets move families from living paycheck to paycheck and include things like bank accounts, savings, homeownership, education, good credit, and emergency funds. Building those assets takes a wide range of strategies and efforts like financial education, purchasing a home, pursuing education and workforce development opportunities that lead to higher paying jobs, starting savings accounts for college and retirement, starting a business, and more. Asset-building gives people the opportunity to build their own financial future with partners in education, banking, business, and community programs. Bank On North Idaho is a cross-sector, community-based effort to empower people to build assets and advocate for their goals to achieve economic mobility.

To learn more, join the network, or bring financial education to your organization, contact: BankOn@UnitedWayofNorthIdaho.org

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Sheri Dickinson is Vice President Treasury Management, Northwest Bank, and a member of the Bank On North Idaho Committee.