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Bank One's Alternative Banking Program

An Effective Practice

Description

In 1998, the Chicago Community Reinvestment Act coalition and the Woodstock Institute negotiated an agreement with Bank One to increase services to unbanked consumers. Working together with these groups, the bank developed the Alternative Banking Program (ABP) for consumers who do not meet Bank One's traditional credit scoring criteria. Through ABP, Bank One offered low-cost checking and saving accounts to unbanked customers with these features:

-a $10 opening deposit;
-low or no minimum balance;
-low or no service fee;
-unlimited check-writing ability;
-unlimited use of Bank One automatic teller machines;
-some free teller transactions; and
-free financial literacy training.

Goal / Mission

ABP accounts were designed to offer a safe, convenient, and inexpensive alternative to check-cashing and other high-cost alternative financial services.

Results / Accomplishments

As of 2002, ABP accounts were available at eight branches in the city of Chicago. This has enabled thousands of consumers, many with no credit record, to establish checking and savings accounts. In addition, the bank marketed other products to ABP customers, including consumer loans, certificates of deposit, and installment loans.

About this Promising Practice

Organization(s)
Bank One
Primary Contact
Caroline Goldstein,
Bank One/Chase
(312) 732-4173
Caroline_goldstein@Bankone.com
http://www.chase.com/welcome_redirect.html
Topics
Economy / Investment & Personal Finance
Economy / Poverty
Organization(s)
Bank One
Source
Finance Project
Date of publication
Dec 2006
Date of implementation
1998
Geographic Type
Urban
Location
Chicago, IL
MiCalhoun