How Community Bankers Support Financial Literacy in the U.S.

rebeca_romero_rainey-2018_150pxBy Rebeca Romero Rainey

Nearly two-thirds of all Americans could not pass a five-question financial literacy test on everyday economic topics, according to the 2016 National Financial Capability Study from the FINRA Investor Education Foundation.

This decline in financial acumen signifies an alarming trend (the study’s fail rate was 42 percent in 2009) that community banks are striving to reverse by working within their communities to improve financial literacy.

Take $1.5 billion-asset BayCoast Bank, for instance, who won top honors during ICBA’s 2018 National Community Bank Services Awards for its innovative youth education program, “Get on the Bus.”  Using a refurbished school bus as a financial education center on wheels, the bank literally drove home the power of financial literacy education. As part of this initiative the bank donated in excess of $800,000, partnered with 14 area schools, and brought 800 seventh-graders on college tours to the University of Massachusetts.  (Learn more about the National Community Bank Service Awards or submit a nomination, here.)

Chelsea Groton Bank, a $1.1 billion-asset bank in Groton, Conn., also has focused on students and teachers in its financial literacy outreach, drawing more than 250 high school students and teachers from nine area schools for its March 2019 Money Madness seminar. Breakout sessions included eating healthfully on a budget, identity theft, education financing, and the importance of saving. The bank also offers ongoing education through “Chelsea University,” an online repository of financial literacy courses.

But it’s not just students who benefit from financial literacy. When a bank study revealed that career military families lagged their civilian counterparts in basic money knowledge, $750 million-asset First Command Bank in Fort Worth, Texas, took action. Its First Command Educational Foundation, a separate 501(c)(3) charity, offers in-person and online financial readiness tools for service members across the globe, as well as increased scholarship opportunities for service members and their families.

ICBA is also helping support local efforts through high-profile partnerships with leading companies working to address the financial literacy gap.  Jump$tart Coalition, one of ICBA’s financial literacy partners, brings together financial leaders from across the industry to offer a comprehensive collection of online financial education resources for pre-kindergarten through college-aged students. ICBA Bancard partner, Visa’s Practical Money Skills also offers solutions to help drive financial literacy, embracing gamification to deliver important financial concepts through dynamic, interactive solutions. Additional national programs include FDIC’s Money Smart and the U.S. government’s combined effort at MyMoney.gov. More information about these programs is available on ICBA’s website.

With 52,000 community bank locations across the U.S., these combined financial literacy efforts serve as proof of the nation’s community banks efforts to expand American’s financial expertise and hopefully, increase our nation’s financial prowess—one community at a time.

Elder Financial Abuse: An Opportunity for Education

According to the Consumer Financial Protection Bureau, One in five older Americans is a victim of financial exploitation, according to the Consumer Financial Protection Bureau. This distinct facet of financial literacy opens doors for new types of education to help protect customers against fraud.

Turnkey resources are available for community banks to who want to counter elder financial abuse in community outreach programs:

In addition, ICBA’s Community Banker University® offers an online course on elder abuse.


 Rebeca Romero Rainey is President and CEO of the Independent Community Bankers of America.