In a Wall Street Journal opinion piece published in January, former President Bill Clinton and California Gov. Arnold Schwarzenegger urged financial institutions and community groups to work together to help the millions of Americans who spend an estimated $8 billion each year at check-cashing outlets, payday lenders and pawnshops for basic financial services that most receive free at local banks or credit unions.

They write: "Here is one initiative that can unite progressives and conservatives as well as business leaders and community activists: helping the unbanked enter the financial mainstream by opening checking and savings accounts and working collaboratively with financial institutions and community groups to develop and market products that work for this untapped market. This will put money in the pockets of individuals and grow the economy. And it won't cost taxpayers a dime."

BusinessTN asked representatives from banking institutions across the state to weigh in on the subject by responding to the following questions:
What is your reaction to this? How do you see the role of banks in bridging the economic gap between unbanked low- to moderate-income individuals and those higher-income individuals who typically bank at your institution? Without providing too much detail about specific product offerings, what is your institution doing to cater to this untapped market?

Mike Edwards
President
Tennessee Banking Group
First Tennessee Bank
Increasing financial literacy and enhancing access to financial institutions are among the steps banks can take to help marginal income and low-income individuals with limited banking opportunities. First Tennessee has increased its contributions to and volunteers for a variety of programs that promote financial literacy.
For example, the bank's consumer lending group has worked with a nonprofit program that helps homeless families get back on their feet by teaching them a variety of skills, including better handling their finances. Helping people understand how personal finance works is a key to serving the underbanked, who often have little experience with establishing savings and checking accounts, balancing checkbooks and other personal finance basics.
The First Tennessee Community Reinvestment Act department, along with Federal Reserve banks around the country, sponsors Money Smart, an FDIC program that targets low- to moderate-income individuals with a one-hour class on budget and credit management. The Money Smart curriculum is delivered through First Tennessee's workplace banking program initiative to employers in markets across the state.
In addition to incentives like free checking, the bank also offers a Payroll Card. It's a checkless bank account employers can offer their employees. This free service can be a good introduction to banking for people without checking accounts. It can also eliminate check cashing fees and trips to the bank because it acts as a debit or ATM card. The bank's fraud detection service is another advantage that would be of particular value to individuals who do not bank regularly.
First Tennessee also recognizes the importance of teaching personal finance management early through its annual support of the American Banker's Association Teach Children to Save Day and the bank's own Financial Literacy Essay Contest for middle and high school students.

Tom Patronis
Senior Vice President,
Memphis Market President
Wachovia Bank, N.A.
In today's global economy, financial access and education are more important than ever. At Wachovia, we rely on a three-pronged approach of people, programs and products to reach out to the unbanked or underbanked in our communities.
First and foremost, we train Wachovia employees to provide hands-on financial literacy instruction in low- to moderate-income neighborhoods in partnership with community organizations. Last year alone, Wachovia trained more than 20,000 individuals.
Second, we work with Tennessee companies to implement banking programs for their employees. Through "Wachovia at Work," we offer free account opening on-site at the workplace, direct deposit setup, and seminars on topics such as money management, understanding credit, and how to buy a home. In some cases these employees are exposed to banks for the first time.
Third, Wachovia offers products and services to meet the needs of people on every part of the financial spectrum. For example, our Free College Checking account helps students begin a banking relationship and offers perks such as a one-time NSF fee waiver and account balance updates by text message. And, our Way2Save account helps consumers build up emergency savings by transferring a dollar from checking to a savings account each time they use their debit card. Wachovia pays 5% interest on the Way2Save savings account and provides a 5% match at the end of twelve months.
By working with community groups, local government and the business community, banks can provide financial access to more of our citizens, which is a win-win for everyone.

Jim Schmitz
Middle Tennessee Area Executive
Regions
Regions has been committed to this effort for some time. Our goal is to provide services to as many people as we can, which includes offering a host of financial services to potential customers in need.
To specifically help the unbanked populations, Regions partners with a number of nonprofits throughout the state, including Woodbine Community Organization in Nashville, Knoxville Area Urban League and Women's Foundation for a Greater Memphis, to promote financial literacy to underserved markets. Through this outreach, we give people access to information regarding the best path to establish or rebuild their credit.
At Regions, we are committed to serving all customers within our 16- state footprint with all types of financial needs. Whether it's opening an account for the first time or starting to build credit, our associates work with each customer to tailor services on an individual basis.