Leagues Request CUs Get ‘BankOn Certified’ to Spotlight Work

Consumers in street

The California and Nevada Credit Union Leagues are asking credit unions to seriously consider offering an account that meets BankOn national account standards to increase the availability of safe, low-cost transactions for millions of unbanked or underbanked consumers in both states.

On a virtual meeting hosted yesterday by Leagues President and CEO Diana Dykstra, credit union CEOs had questions regarding process, structure, and the “why” behind the Leagues’ urgent request for credit unions to apply for and receive the BankOn Certification. Other CEOs also discussed how receiving and displaying this critical certification is “the right thing to do” for the credit union movement and the communities they serve.

“Our movement has an opportunity to show state and federal legislators and regulators real numbers on local credit union involvement in this important endeavor, which so many policymakers have their eye on,” Dykstra said.

Credit unions can apply here or view more information here. Industry leaders should NOT feel they must proactively market this type of account; rather, they should have an account available for serving local underserved consumers who need to enter the mainstream banking marketplace.

Many credit unions are already doing this. But from a tangible data perspective, simple actions like obtaining the BankOn Certification will help defend the credit union charter over the long term and plant the seeds for new member relationships, Dykstra said.

There is a heightened focus and interest by members of Congress, state legislators, and regulators to ensure low-income and rural and unbanked communities are being served. These lawmakers and policymakers are examining multiple avenues to address the challenges faced by these consumers.

“If credit unions fail to meet this challenge on their own terms, legislative and regulatory bodies have expressed interest in standardizing a prescriptive approach — which could possibly include eliminating overdraft altogether,” Dykstra said. “Instead, credit unions can proactively obtain the BankOn Certification seal of approval to help showcase what many of them are already doing for their communities.”

For a credit union to receive and display its BankOn Certification would spotlight the member-centric philosophy it is already proving each day in the communities it serves.

“Please help our movement showcase the good we are already doing as legislators and regulators increasingly look to address the underbanked and unbanked,” Dykstra added.

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