Business Proposals

OPENING A BASIC BANK ACCOUNT

Access to Basic Banking Services for Low-Income Individuals

TORONTO, Feb. 14, 1997 /CNW/ - The Canadian Bankers Association (CBA) is pleased to announce revised bank policies that will provide low-income individuals with improved access to basic banking services- Working with L'Association cooperative d'economie familiale du Centre de montreal (ACEF-Centre) and the National Anti-Poverty Organization (NAPO), the banks have come to better understand the banking needs of low-income individuals.

"People with low incomes have difficulty obtaining the usual types and the number of pieces of identification usually required by banks," explained Raymond Protti, the CBA's President and CEO. "They require access to their funds immediately, want low-cost banking options, and have a right to be treated with fairness and respect. The banks recognize and are committed to being sensitive to those needs."

The following advances and commitments have been made by the banks:

* The CBA has issued a list of identification documents which will usually be accepted by banks for opening accounts and, in most cases, cashing cheques.* Banks will require only two, not three, pieces of signed identification. Photo identification is desirable but no longer mandatory.* Banks will accept sponsorships or personal references from branch staff or responsible customers known to the branch.* Banks do not require a minimum deposit to open a bank account.* Employment is not required to open a bank account.* Banks will explain clearly to customers their hold policies for deposited funds.* Direct deposit of government funds will ensure immediate access to those funds for recipients.* Staff will be reminded of the need to treat all customers with fairness and respect.

''This is only the beginning of the banks' progress on the access issue. We are approaching government issuers of social assistance benefits to help provide better identification documents and to offer their clients direct deposit. In addition, banks will continue to work with community groups, nationally and locally, to develop educational programs to sensitize staff to the needs of their communities and to help customers become more knowledgeable about and comfortable with using banking services," noted Mr. Protti.

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