Wells Fargo has launched a 10-year plan to boost access to affordable, digital bank accounts for unbanked communities in the US.
The Banking Inclusion Initiative will focus on unbanked Black and African Americans, Hispanics and Native Americans. It will also help underserved customers with a bank account but using expensive, non-bank services and have similar requirements.
Go deeper with GlobalData
To deploy the initiative, Wells Fargo intends to combine national and community stakeholders. The company will work with partners to resolve the credit challenges for people who are unbanked.
Wells Fargo aims to start by lowering the number of unbanked individuals this year.
Wells Fargo CEO Charlie Scharf said: “Through our Initiative, we will organise our resources under one umbrella and work with a broad and diverse group of stakeholders on a sustained multi-year effort to accelerate financial inclusion in the US.”
Banking Inclusion Commitment
The bank will further support Black-owned Minority Depository Institutions (MDIs) and enable cash withdrawal for its ATMs without fees.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataIt will also provide a team to collaborate with each MDI on strategies for financial, technological and product development.
The initiative will increase funding and support to boost the cost-effective, credit-building consumer loan programme of Credit Builders Alliance (CBA).
Non-profit lender members will receive patient loan capital, capacity-building grants and technical assistance from the CBA Fund. This will offer low-cost consumer loans to low- to moderate-income (LMI) individuals for meeting short-term cash needs.
The initiative will also help unbanked individuals navigate the financial system and easily open a Bank On-certified account.
Wells Fargo will partner with fintechs, including MoCaFi, to better cater to underserved communities.
In addition, the initiative will include financial education and advice, and the launch of a National Unbanked Advisory Task Force.
Wells Fargo CEO of Consumer and Small Business Banking Mary Mack said: “It is our hope, working closely with our partners, we will be able to make a difference over time in addressing such a critical problem for our society.”
Wells Fargo Q1 2021 earnings were ahead of analyst forecasts with revenue ahead by 1.9% year-on-year to $18.1bn.
