Helping the ‘unbanked’: California mulls entering banking business to serve disadvantaged consumers

In California, 81% of unbanked individuals earn less than $15/hr, hitting low-income families and people of color the hardest.

“We can’t create a stable economy when financially underserved households spend an average of 10% of their take-home pay in fees and interest, just to access their own money and pay bills,” Assemblymember Miguel Santiago said. “Creating a public option for banking and closing the racial wealth gap isn’t only a moral imperative, but it also creates greater financial security for all of our communities.”

This is where our CalAccount bill AB 1177, the CA Public Banking Option Act passed by the legislature in 2021, comes into play. By Summer 2024, a market analysis for the program will be completed, paving the way for a universal debit account for all Californians with zero fees or penalties.

Read the article on CalMatters.