Banking the unbanked : CalAccount market study and feasibility assessment / Jonathan W. Welburn, [and twenty-three others].

Format:

Book

Author/Creator:

Welburn, Jonathan William, author.

Contributor:

RAND Social and Economic Well-Being (Program)

California. Office of the State Treasurer, sponsoring body.

Language:

English

Subjects (All):

Finance--California.

Finance.

Banks and banking--California.

Banks and banking.

Financial institutions--California.

Financial institutions.

Poor--California--Finance, Personal.

Poor.

Other Title:

Banking the Unbanked

Place of Publication:

RAND Corporation 2024

Summary:

This report documents an analysis, conducted in response to the California Public Banking Option Act, of the feasibility of the CalAccount Program, which would seek to facilitate basic financial transactions for unbanked and underbanked Californians by providing them with a voluntary, zero-fee, zero-penalty, federally insured transaction account and related payment services. The authors find that the expected benefits of CalAccount--particularly savings among Californians in marginalized groups gained by avoiding fees associated with banking and the use of alternative financial services--marginally outweigh the expected costs of CalAccount. The authors also find that the CalAccount Program is generally feasible, with two important caveats: Banks may have little incentive to participate in and promote the program, and lack of interest among California's unbanked and underbanked populations may pose a significant challenge to achieving sufficient enrollment in the program. The authors document their findings on program feasibility and the trade-offs between program costs and benefits, and they provide recommendations on implementing the program.