FDIC Economic Inclusion

The Federal Deposit Insurance Corporation (FDIC) is dedicated to ensuring that consumers have access to basic banking and other financial services. As part of its commitment to this issue, the FDIC has begun an effort to bring all Americans — especially unbanked and underserved populations — into the financial mainstream.

FDIC Board Approves Safe Accounts Pilot—Applications to Participate Accepted Through October 15, 2010
On August 10, 2010, the FDIC's Board of Directors approved implementation of a pilot to evaluate the feasibility of insured institutions offering safe, low-cost transactional and savings accounts. Participating institutions will offer primarily electronic deposit accounts with product features identified in the FDIC Model Safe Accounts Template. The FDIC is accepting applications from insured institutions interested in participating in the pilot until October 15, 2010; applications should be submitted through SafeAcctPilot@fdic.gov.

Small-Dollar Loan Pilot Program and a Safe, Affordable, and Feasible Template for Small-Dollar Loans
In February 2008, the FDIC began a two-year pilot project to review affordable and responsible small-dollar loan programs in financial institutions. The pilot was a case study designed to illustrate how banks can profitably offer affordable small-dollar loans as an alternative to high-cost credit products, such as payday loans and fee-based overdraft programs. The small-dollar loan pilot concluded as of the fourth quarter 2009 and resulted in a template of essential product design and delivery elements for safe, affordable, and feasible small-dollar loans.

Advisory Committee on Economic Inclusion
The FDIC Advisory Committee on Economic Inclusion (ComE-IN) was established in 2006 by Chairman Sheila C. Bair and the FDIC Board of Directors according to the Federal Advisory Committee Act. The Committee provides the FDIC with advice and recommendations on important initiatives focused on expanding access to banking services by underserved populations, including reviewing basic retail financial services such as: check cashing, money orders, remittances, stored value cards, short-term loans, savings accounts, and other services that promote asset accumulation by individuals and financial stability.

FDIC Survey of Banks' Efforts to Serve the Unbanked and Underbanked
During 2008, the FDIC conducted a nationwide survey of FDIC-insured depository institutions (“banks”) to assess their efforts to serve unbanked and underbanked individuals and families. The bank survey, the first of its kind at the national level, was mandated by Section 7 of the Federal Deposit Insurance Reform Conforming Amendments Act of 2005 (“Reform Act”). The Reform Act requires that the FDIC conduct biennial surveys of banks' efforts to bring individuals and families who have rarely, if ever, held a checking account, a savings account or other type of transaction or check-cashing account at an insured depository institution into the conventional finance system.

Alliance for Economic Inclusion
The Alliance for Economic Inclusion (AEI) is the FDIC's national initiative to establish broad-based coalitions of financial institutions, community-based organizations and other partners in markets across the country to bring all unbanked and underserved populations into the financial mainstream.

AEI's focus is on expanding basic retail financial services for underserved populations, including savings accounts, affordable remittance products, affordable small-dollar loan programs, targeted financial education programs, alternative delivery channels and other asset-building programs.

So far, 983 banks and organizations have joined AEI nationwide; more than 116,000 new bank accounts have been opened; 31 banks are in the process of offering or developing small-dollar loans; 23 banks are offering remittance products; and more than 102,000 consumers have been provided financial education.

Money Smart
The FDIC initiated a national financial education campaign in 2001 by launching Money Smart, a comprehensive financial education curriculum designed to help individuals outside the financial mainstream develop financial skills and positive banking relationships. Over 2.4 million consumers have been reached with Money Smart and over 1,600 organizations are part of the FDIC's Money Smart Alliance. Money Smart is available in seven languages and in versions to teach adults and youth and for consumers to complete independently online or through a MP3 player. The FDIC continues to form alliances with public, private, and non-profit entities to promote financial education and encourage linkages between financial education and access to mainstream banking services.

Related Research and Resources
The FDIC provides research, data, and other resources for consumers, banks, policymakers and others regarding issues related to consumer protection, underserved populations, and the use of alternative financial services.