New America Foundation Commends Governor Arnold Schwarzenegger’s Bank on California Initiative
Today, California Governor Arnold Schwarzenegger announced he would launch a Bank on California initiative to connect lower income un-banked Californians with the financial products and services they need to begin climbing up economic ladder. The program builds on Bank on San Francisco, a citywide effort to bring 10,000 of the city’s estimated 50,000 un-banked residents into the financial mainstream through participating banks’ offerings and marketing of reasonably-priced products and services.
“We applaud Governor Schwarzenegger for recognizing that un-banked Californians are financially vulnerable and should be encouraged to become part of the financial mainstream,” said Olivia Calderon, California Legislative Director of the Asset Building Program at the New America Foundation. “Helping more Californians to enter the financial mainstream is a good first step, but there’s plenty of work ahead and we look forward to continuing to advise the legislature and collaborate with the Governor so that all Californians have a real opportunity to build savings and assets.”
Ellen Seidman, Director of the New America Foundation’s Financial Services and Education Project, added “the Clinton Foundation’s support for similar programs in cities outside of California will enable millions of additional Americans to have access to well-priced and well-designed financial products that enable them to build wealth.”
Far too many Californians are disconnected from the financial mainstream. Currently, 28 percent of adults are without a simple checking or savings account and nearly 60 percent of low income neighborhoods are without a bank or credit union.
The New America Foundation is currently sponsoring Assembly Bill 1502 in California to create a Banking Development District program, intended to spur increased and enhanced banking services in under-served communities. The act was inspired by New York State’s Banking Development District program and uses state and local deposits to encourage banks to open branches in lower-income neighborhoods and develop products and services tailored to local residents.
Related Programs: New America in California, Asset Building Program
Topics: Ownership & Assets
