With more direct payments coming for many Americans in the wake of a new round of economic impact payments, the importance of having a banking relationship will rise for unbanked Americans, White House official Cedric Richmond told ABA’s Washington Summit today.
The stakes for the 5% of U.S. households that are unbanked—according to the latest FDIC survey—will grow in July, when millions of families become eligible for monthly advance payments on the expanded child tax credit in the recently enacted American Rescue Plan, Richmond said.
“We need to get those people banked,” said Richmond, a former U.S. representative from Louisiana who directs the White House Office of Public Engagement. “Once you’re banked, you’re part of a family . . . that will help you as you mature in terms of financial responsibility.” Richmond and American Bankers Association President and CEO Rob Nichols discussed the role of affordable and accessible Bank On-certified accounts in helping unbanked Americans efficiently and securely receive these payments.