East Cambridge Savings Bank has launched three products designed to help consumers access bank accounts and build credit.
The $1.3 billion-asset mutual bank said in a statement this week that the products would help individuals and families improve their financial well-being and gain greater access to financial resources.
“These three new products are all meant to bring more people into a banking relationship and avoid the costs associated with not having a bank account,” the bank said in the statement.
The products include a checking account, East Cambridge Access Checking, that has been certified as meeting Bank On national standards. Bank On is a nationwide program led by the Cities for Financial Empowerment Fund (the CFE Fund), a New York-based organization that provides financial institutions with product guidelines to meet the needs of low-income consumers who might be considered under-banked or unbanked.
Citing data gathered by the CFE Fund, East Cambridge Savings Bank pointed out that nearly 5 percent of U.S. households, approximately 12 million adults, do not have a checking or savings account, while almost 11 percent of U.S. households, or about 24 million adults, are considered underbanked and use some alternative financial services.
The new products also include the East Cambridge Credit Builder, a loan product for individuals with no established credit or who want to improve their credit profile. The installment loan lets individuals borrow money that is then placed in a certificate of deposit account. By making on-time payments on the loan, customers could improve their credit scores.
The bank is also offering a secured credit card to help customers build credit history. Secured credit cards require a deposit with the bank that is equal to the card’s credit limit.
East Cambridge Savings Bank President and CEO Gilda Nogueira pointed out the the importance of making banking products accessible to more people.
“As a mutual bank, one of our founding principles is serving the needs of those who live and work in the communities we serve,” Nogueira said in the statement. “These three products, especially the certified BankOn checking account, are designed to bring more people into a safe and secure banking relationship which is a key tool to a financially stable future. We firmly believe that financial institutions of all sizes play a key role in serving the under-banked and opening doors to financial opportunity for all.”
East Cambridge Savings Bank is headquartered in Cambridge and has locations in Arlington, Belmont, Cambridge, Chelsea, Malden, Medford, Somerville and Waltham, as well as an educational training facility at Cambridge Rindge and Latin School.
