Currently, to participate in these types of programs,
FDIC-regulated banks are required to submit a lengthy and complicated branch
proposal. By waiving this requirement, a significant regulatory hurdle
would be removed and local financial institutions could begin providing direct
financial services as part of a financial literacy curriculum.
By some estimates, nearly 18 million of the 40 million
households currently unbanked or underbanked have young people present.
When banks can provide basic financial services through schools, it
presents a meaningful opportunity to offer financial literacy training at a
young age. This will help prepare young people for critical financial
decisions, such as a rental agreement, mortgage application, or student
loan. It would also offer participating financial institutions the
opportunity to identify new customers before credit or previous account
problems make account ownership difficult or unlikely.