PNC Bank has gained certification from the Cities for Financial Empowerment (CFE) Fund for a second bank account that limits fees. The nonprofit CFE Fund and the Bank On coalition aim to help low- to moderate-income people gain affordable banking services.
The financial institution (FI) will charge $5 a month, but the checking account will have no charges for overdrafts or insufficient funds, Bloomberg reported. One in four U.S. adults is considered unbanked or underbanked, according to the nonprofit Financial Health Network, which says those consumers pay almost $200 billion a year in fees and interest on financial products.
Earlier this year (Jan. 27), the CFE Fund certified 60 FIs, including PNC, as partners in its efforts, according to a press release. “These bank and credit union accounts support local Bank On coalition efforts to expand access to safe and appropriate financial products and services to the almost 36 million people outside of the mainstream financial system.”
The CFE Fund said that the “low-cost, no-overdraft, no-surprise-fee bank and credit union accounts have been highlighted by the Federal Deposit Insurance Corporation and other federal agencies in connecting people to claiming or depositing their (stimulus) and other emergency payments.”
“We are committed to providing inclusive banking services for customers who may not have access to traditional checking or savings accounts,” said Bonnie Wikert, PNC executive vice president and head of retail segments and deposit products. “Our Smart Access prepaid debit card product is designed to help those customers conduct their banking in a safe and convenient manner.”
The pandemic and its economic crisis threaten to push more lower-income families to the fringes of the financial system. Those who are underbanked typically don’t have enough cash to start an account or get loans from banks. They are swimming against the tide, as many merchants shift to digital transactions.
The latest certification makes PNC the only lender with two accounts certified by the CFE Fund’s Bank On movement, Bloomberg reported. The move comes as PNC is working to help customers who are struggling to pay loans or fees to stay in the banking system.
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