For Immediate Release
MAYOR BOOKER LAUNCHES BANK ON NEWARK PROGRAM;
CITY PARTNERS WITH NEWARK NOW AND FINANCIAL INSITUTIONS
TO PROVIDE RESIDENTS WITH VITAL BANKING SERVICES
Alliance between financial institutions and City will reduce residents’ dependence
on check-cashing agencies and help them control their own finances
Newark, NJ - November 23, 2009 – Mayor Cory A. Booker, Municipal Council President Mildred Crump, Deputy Mayor for Economic and Housing Development Stefan Pryor, Newark Now Chief Operating Officer Anthony Santiago, PNC Bank Regional President for Northern New Jersey Linda Bowden; Wachovia Northeast Regional President for Community Banking Michelle Y. Lee; Everton Rose of Citibank, Senior Vice President and Retail Banking Regional Executive at Garden State Community Bank Fay Hamid; Tony Davis of Federal Reserve Bank of New York, and National League of Cities representative Heidi Goldberg, and other dignitaries launched the “Bank on Newark” Program, at a City Hall Rotunda press conference today, creating a partnership to unite regional financial institutions with the City to bring banking services to City residents in need or who are unable to maintain bank accounts or access such services.
Based on San Francisco’s “Bank of San Francisco” program, “Bank on Newark” will enable low-income residents to maintain bank checking and savings accounts, which will reduce their dependence on fee-charging check-cashing agencies. It will also enable them to have pay, Social Security, and welfare checks directly deposited to these accounts, which will reduce chances of them being robbed or stolen. In addition, residents will gain access to other vital banking services, like loans and mortgages, and education about those services from banking professionals.
“This program is just one of many in the City of Newark that empower our residents. I am grateful to the 11 financial institutions that have stepped forward to show Newark residents how opening a bank account can truly make a difference in their lives. Brick by brick, programs such as the Newark Now Financial Empowerment Center, our Volunteer Income Tax Assistance initiative, our Family Success Centers, our Grandfamily Success Center, and others, are helping to strengthen our City’s families. Today we are planting seeds that will help make the wealth and financial infrastructure of our community grow,” said Mayor Booker.
About 22 million Americans lack bank accounts, and in Newark at least 15,100 households are un-banked. Cities with high un-banked populations incur serious social costs. Un-banked residents suffer financially by paying high fees to check cashers-sometimes as much as $800 a year. Public safety is jeopardized, as robberies are more prevalent around check cashers-especially on payday. Un-banked individuals are especially vulnerable in the event of a disaster; 70 percent of Hurricane Katrina evacuees didn’t have bank accounts and they watched their savings wash away with the rest of their belongings. Finally, a bank account puts people on the road to further financial stability. Without one, it’s harder to get well-priced car loans, credit cards, or mortgages-the exact financial tools needed to climb the economic ladder.
“Bank on Newark is one of my favorite programs. It will benefit the residents of Newark. They will be able to re-establish credit lines and work cooperatively with the banks to resolve past difficulties. Many Newarkers will get a new financial start and will no longer have to rely on a check-cashing place for their banking needs, where they have to pay a substantial fee for the service,” said Council President Crump.
“We are excited to expand and strengthen our partnership with the banking community in this City. Through this new program, 11 financial institutions with a total of 37 branches covering all five wards of our City will offer our residents special accounts that meet their needs with features including limited overdraft fee waivers, free monthly money orders, and acceptance of foreign ID. Especially in a down economy, the City of Newark is determined to bring financial opportunity and economic empowerment to our community,” said Deputy Mayor Pryor.
“I want to thank the Chief Executive Officer of Newark Now, Edgar C. Izurieta, for introducing this wonderful program,” said Mr. Santiago. “Newark Now is happy to help the City of Newark in putting together this incredibly innovative approach to building strong financial futures for families and individuals in our community.”
“Garden State Community Bank is pleased to join with Mayor Booker in developing resources that focus on financial education, and help residents move away from alternative financial services such as check cashers and toward traditional bank accounts and relationships. As a true community bank, we seek to make visible and measurable commitments to supporting financial empowerment in our communities. Newark’s ‘unbanked’ population needs to know that we are there to work help them create a more secure financial future,” said Ms. Hamid. The bank is a Division of New York Community Bank.
National and local research identifies some common barriers that block people-especially urban residents-from opening bank accounts. Check cashers, while expensive, charge a consistent, upfront fee for their services. In contrast, surveys repeatedly show that many un- and under-banked people interpret the fee structures at banks as “unpredictable,” and avoid them because of it. Additionally, many banks require people to provide a US driver’s license to open an account. Others may accept foreign passports, but not consular cards. Both cases can prevent immigrants from opening accounts. Lastly, people may be denied bank accounts when databases such as ChexSystems show that they have committed infractions against banks in the past. Many banks will simply avoid anyone with a record, despite a person’s subsequent responsible behavior.
“Citibank is proud to support the Bank on Newark Program’s efforts to communicate to low-income individuals the importance of establishing a relationship with a bank,” said Mr. Rose, who is Branch Manager for the Citibank located at the corner of Board Street and Raymond Boulevard. “We are pleased to join with the City of Newark in strengthening our commitment to help make this vibrant community a better place for all those who live and work here.”
“My colleagues and I at PNC look forward to working with community leaders and residents across the city through Bank on Newark to support our neighbors. Working together, we provide those most in need of banking services with financial education and solutions that yield a different kind of richness, a pathway to a brighter future for individuals and revitalization that builds an even stronger community,” said Ms. Bowden.
“Wachovia is proud to be part of Bank on Newark. We know that having the convenience, safety, and stability of a bank account is a key component to joining the financial mainstream. By improving access to a fairly priced mortgage, car loan or credit card, it also lays the foundation for financial success. This is just another way for our bank to invest in the revitalization of Newark,” said Ms. Lee.
The following banks and lending institutions are partnering in the program: Citibank; PNC; Wachovia; Garden State Community Bank (A Division of New York Community Bank); North Jersey Federal Credit Union; Atlantic Federal Credit Union; The Provident Bank; CapitalOne Bank; Millennium Bank; TD Bank; and City National Bank.
Anyone with questions about any City of Newark programs or policies should contact the Non-Emergency Call Center at (973) 733-4311.
-NEWARK-
Contact: Newark Press Information Office - (973) 733-8004
pressoffice@ci.newark.nj.us
About the City of Newark, New Jersey
Newark, commonly referred to as Brick City, is the third oldest city in the United States and the largest in New Jersey, with a population of more than 280,000 people. Newark sits on one of the nation’s largest transportation super-structures including an international airport, major rail connections, major highway intersections and the busiest seaport on the east coast.
With a new Administration as of July 2006, Newark continues to see signs of a strong revival. In population, it is one of the fastest growing cities in the northeast. Its six major colleges and universities are further expanding their presence. The production of affordable housing has doubled, businesses are returning and crime is going down. There is still much work to be done but Newark is on its way to achieving its mission: to set a national standard for urban transformation.
For more information on the City of Newark, please visit our website at www.ci.newark.nj.us
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