Denver officials are hoping a new program called Bank on Denver will recruit more residents to the banking system.
The program aims to link the “unbanked,” or people without checking or saving accounts, with banks and credit unions.
It aims to do the same for the “underbanked,” or people who use limited banking services because they more frequently utilize payday lenders or money- order services.
The Denver Economic Prosperity Task Force, a group of policymakers and community representatives, launched the program in October.
“It really is an issue that affects all communities,” said Laura Sonderup, market director of Heinrich Hispanidad, a Latino marketing firm helping FirstBank create a more friendly environment. “That can be a scary proposition to walk into a bank if you feel like you don’t understand the system.”
Unbanked and underbanked households account for 22.2 percent of the population in Colorado, a little less than the national average of 25.6 percent, according to a May report from the Federal Reserve Bank.
The average full-time worker can save $40,000 throughout a career by replacing check-cashing services with a checking account, a 2008 study from the Brookings Institution found.
Denver does better as a whole when residents are more prosperous and have solid financial standing, said Derek Woodbury, a spokesman for Denver’s Office of Economic Development.
So far, 11 banks and credit unions are participating in the program, which requires them to help fund marketing efforts and provide certain services. Those services include free or low- cost accounts with no balance requirement, and a system that accepts a foreign passport, a Mexican matricula consular card or an individual taxpayer identification number issued by the IRS as primary identification.
The program also offers free monthly financial classes on topics such as budgeting, managing checking accounts, improving a credit rating, paying off debt and saving.
Bank on Denver is modeled after Bank on San Francisco, which helped open 50,000 new accounts in San Francisco and has an 80 percent retention rate. Average account balances range from $600 to $800, said Sarah Bainton Kahn, who is in charge of the National League of Cities’ Bank on Cities Campaign.
San Francisco’s program helped reduce crime on paydays against immigrants without bank accounts.
Rita Wold: 303-954-1488 or rwold@denverpost.com
