A national survey on telehealth found that in 2022, 57% of US adults were offered a virtual care option. About 20% chose not to use it, often because they were concerned about technology issues or privacy. This is just one example of how perceived risk and lack of trust can prevent people from adopting services that could otherwise be helpful.Similarly, unbanked and underbanked individuals cite privacy concerns as one of the main reasons for their hesitation to establish bank accounts. According to the Federal Deposit Insurance Corporation (FDIC), 5.6MM households remain unbanked and roughly 19MM are underbanked, leading many Americans to resort to expensive alternative financial services. It’s therefore encouraging to see that the Cities for Financial Empowerment’s (CFE) Bank On program has recently experienced a significant increase in adoption. Established over a decade ago, this program continues to connect consumers with safe, affordable bank accounts by working with financial institutions, local governments, and nonprofits, and setting national standards for low-cost checking and savings accounts. A Surge in AdoptionCurrently, 513 financial institutions offer Bank On-certified accounts. Each year, the Federal Reserve Bank of St. Louis publishes data from institutions that voluntarily report their Bank On account activity. In the most recent reporting year, 45 institutions participated. While the data is not comprehensive, the trend is clear: Bank On accounts continue to gain momentum, demonstrating growing adoption and, importantly, sustained customer use.Here's a rundown of the data:
- Over 14MM Bank On-certified accounts were open as of December 2024 — a 27% increase YoY — with more than 4.8MM accounts opened in 2024 alone.
- Bank On-certified account offerings were open in 91% of US zip codes.
- Community financial institutions (CFIs) experienced a 34% increase in new account openings, with 65% of new accounts coming from new customers.
- Financial institutions with over $100B in assets registered a 19% boost in new accounts, with 84% of customers new to the financial institution.
- Over three-quarters of account holders made deposits and withdrawals, 39% used direct deposits, and half used peer-to-peer payments. All these transactions increased steadily YoY, indicating that consumers are actively using these accounts for regular financial transactions.
Key Considerations for CFIs Evaluating the Bank On OptionCFIs considering whether to offer Bank On-certified accounts should consider the pros and cons before making a decision.
- Benefits. By expanding access to safe, affordable banking, CFIs can grow their depositor base while strengthening their reputation as trusted local financial partners and advancing their financial inclusion objectives. Over time, these accounts may develop into deeper, more profitable customer relationships, as account holders build financial stability and potentially adopt additional products such as savings accounts, credit cards, or loans.
- Considerations. Because Bank On–certified accounts are intentionally low cost and do not permit overdraft fees, they typically generate limited direct fee income. Institutions may also need to invest additional time in product setup, staff training, and ongoing oversight to ensure the account is offered and administered consistently. Additionally, some institutions perceive heightened compliance sensitivity, as serving first-time or lower-income customers can heighten the importance of clear disclosures, consistent processes, and strong operational controls.
CFIs That Offer Bank On-Certified AccountsMany CFIs now offer Bank On-certified accounts, and the list is growing. Here is what some of them say about their experiences and their offerings.
- Penn Community Bank. The CFI’s Access Checking account includes no overdraft fees and will waive a monthly maintenance fee so long as the account receives $500 in direct deposits each month. “Through products like our Access Checking account, we’re working to ensure that everyone has access to safe, affordable banking services that can help them grow and thrive. This recertification demonstrates our ongoing commitment to removing barriers to financial services and creating opportunities for economic mobility in the communities we serve,” says Chief Consumer Banking Officer Bernard Tynes of Penn Community Bank , a Pennsylvania-based CFI with $2.9B in assets.
- Sunflower Bank. Matt Lamb, Executive Vice President and Chief Retail Banking Officer at the $8.5B Texas-based CFI, says, “Access to a checking account is an important step for individuals seeking to achieve financial stability, and we look forward to making this beneficial Achievement Checking Account product available everywhere we serve in the coming months.”
- First Keystone Community Bank. The $1.4B Pennsylvania-based CFI offers its Keystone Bank On Account, with no overdraft fees or maintenance fees. Chris Zlobik, Senior Vice President and Chief Banking Officer , says, “We are excited to be offering this new product which will help people throughout our local communities. The account is geared towards unbanked or underbanked individuals and families and offers consumers who are looking to improve their finances a safe, affordable, and truly useful mainstream banking product to access and manage their money.”
Adoption of Bank On-certified accounts is growing as CFIs focus on financial inclusion and customers seek low-cost, transparent banking services. CFIs evaluating this opportunity should weigh both the benefits and the drawbacks of offering these low-cost accounts to their customers before deciding whether to offer them. Regardless of whether Bank On-certified accounts are right for your institution and customer base, there’s no doubt that the popularity of the accounts is increasing and that the impact stands to be substantial as the trend continues.
