Banking on the Future

United Way Chief Community Investment Officer Carole Watson surrounded by partners and supporters at the Bank on Oakland launch. (image: Alain McLaughlin)

More than 30,000 Oakland families—98% of whom have some sort of income—do not have a bank account. These families, who are also primarily low-income, are forced to pay hefty check-cashing and other fees simply to use their own money to pay bills.

This April, United Way partnered with the City of Oakland to launch “Bank on Oakland,” a program that helps low-income consumers access financial products and services. United Way coordinates the Bank on Oakland program, organizing marketing and fundraising efforts, and tracking outcomes.

Having a bank account can save low-income households $40,000 over a career. If invested rather than spent at check cashing stores, that $40,000 translates into $360,000.

Bank on Oakland mirrors the successful Bank on San Francisco model in which nearly 25,000 checking accounts have been opened and remain active since 2006. United Way’s 2-1-1 phone line is the primary number for both “Bank on” programs, providing callers with information about participating banks, locations, language capacity and fees.

“At a time of historic economic meltdown, to be able to provide resources that will allow our residents to become financially literate and to engage them in this sort of process is absolutely imperative,” says Oakland Mayor Ron Dellums.

“Bank on Oakland is an essential component to bringing us out of economic uncertainty.” To find out more about United Way’s efforts to reduce the unbanked in Oakland visit www.bankonoakland.ca.gov..