A new FDIC survey found most Volunteer Tax Assistance Provider sites are willing to provide their unbanked clients with a list of local financial institutions that offer Bank On accounts, even if the sites are not partnered with any institutions. VITA sites offer free tax preparation services to low-income households. Some sites partner with banks and other financial institutions to help the unbanked establish bank accounts to receive their tax refunds, but not all sites seek out partnerships. The survey explored barriers to providing banking services at VITA sites.
Roughly a third of respondent sites with banking partners met their partners through an event or network, such as Bank On coalitions or local community organizations, according to the survey. About a quarter of sites formed their partnerships because of an initiative of the partner bank or credit union. Roughly two in three VITA sites were willing to direct unbanked clients to financial institutions with Bank On accounts, regardless of whether the sites had existing banking partnerships.
The FDIC also asked VITA sites what practices were most useful for helping clients open bank accounts. Around 71% of locations that used on-site phones, virtual conferences, mobile apps or paper forms described the practice as “very useful.” Eighty-six percent of sites that use referrals, and 85% that used alternative methods such as government or trusted websites, described the practice as very useful.
