MONEY

The Bank On Illinois Commission, established by Public Act 101-0427, is a coalition comprised of state and city elected officials, financial institutions, and community organizations that work together to improve the financial stability of unbanked and underbanked residents in Illinois.

Many households in Illinois do not have a checking or savings account and rely on costly check-cashing and other alternative financial services. For these residents, opening a safe, affordable, and non-predatory checking or savings account is an important step toward improving financial wellness. Bank On Illinois helps make that step easier. Under and unbanked populations are targeted by predatory lenders, such as auto title lenders, cash checkers, payday lenders, and pawnshops.

These non-bank financial entities take advantage of low-income and immigrant lenders by charging high, long-term fees, in exchange for requiring low information lending documentation In 2008, the Brookings Institute found that, on average, a full-time worker that forgoes traditional retail banking products is charged roughly $40,000 in lifetime fees. Another example, a household with an income of $32,000 per year can typically spend up to $2,400 annually simply cashing paychecks at check-cashing locations Those funds could instead be put toward savings accounts, college savings plans, or other important financial goals.

This effort is made possible thanks to The Cities for Financial Empowerment fund (CFE fund) The CFE fund leads a national movement that supports local coalition efforts to expand banking access for consumers outside the financial mainstream

The CFE fund and Bank On Illinois Commission recognize that banking access is of critical importance in today’s world, and will work together to ensure ease of access to banking that is equitable both for individuals and community financial organizations Further, the Bank On Illinois Commission will ensure that there is a strong partnership between regulators, banks, the State of Illinois, and nonprofit agencies. Indeed, the implementation of this program is a joint effort by stakeholders and partners committed to the cause.

To get certified, illinoiscomptroller.gov