Boston City Hall
The city of Boston has added another partner to its initiative to provide checking accounts to the city’s unbanked and underbanked residents.
USALLIANCE Financial, a New York-based credit union with Greater Boston branches, has joined the Bank On Boston initiative to provide residents with a free, easy-to-use checking account, Mayor Marty Walsh’s office said in a statement yesterday.
USALLIANCE Financial’s Dora Everyday Checking product eliminates overdraft fees, a requirement to meet national Bank On standards established by the Cities for Financial Empowerment Fund. USALLIANCE joins Bank of America and Chase Bank as Bank On Boston participants offering checking accounts meeting the national standards.
Overdraft fees disproportionately affect low-income households, the city said in the statement, pointing to a recent study from the Center for Responsible Lending that found that more than 80 percent of the nearly $12 billion in overdraft fees charged by large banks in 2019 were assessed on just 9 percent of account holders.
“One of the most basic requirements for financial security and building wealth is having a safe place to bank without the fear of unfair penalties and fees,” Walsh said in the statement. “We thank USALLIANCE Financial for its partnership in providing Boston residents with a banking product that is accessible, fair, and free.”
Boston’s program also includes several banks and a credit union that meet Basic Banking for Massachusetts standards for low-cost checking and savings accounts set by the Massachusetts Community & Banking Council, including Boston Private, Brookline Bank, City of Boston Credit Union, Eastern Bank, Santander Bank and Webster Bank.
Walsh launched Bank On Boston in 2017. According to the statement, approximately 10 percent of Boston residents do not have a checking or savings account, and many of these residents use costly check-cashing services found in low-income communities and communities of color.
“Roxbury, Dorchester, and East Boston account for 57 percent of Boston’s check-cashing locations but only 12 percent of the city’s commercial bank branches,” the statement said. “Bank On Boston focuses on alleviating these banking disparities to ensure equal access to financial stability.”
Dora Everyday Checking is USALLIANCE Financial’s new app-based account, which has instant debit card freeze-ability, free ATM access and early pay with direct deposit. The app is available in English and Spanish.
“It’s been a wonderful experience to partner with Bank On Boston as their commitment to providing inclusive financial products and services to underserved communities aligns so well with the product and mission of USALLIANCE Financial,” Kristi Kenworthy, managing director of Bank Dora, a division of USALLIANCE Financial, said in the statement. “Our Dora application is paving the way with a completely digital, bilingual, free checking account to help people begin asset building. I’m excited to see what the future holds as we work together with Bank On Boston in helping the underbanked.”
In addition to connecting residents with non-predatory financial services, Bank On Boston raises public awareness of mainstream banking, expands access to financial education and connects residents to other OFE programs. The initiative is led by the Bank On Boston Coalition – a partnership of 34 financial institutions, regulators and community-based organizations.
The Bank On Boston Coalition is one of 80 state and local coalitions in the national Bank On movement, led by the nonprofit Cities for Financial Empowerment Fund.
