There are systematic barriers that prevent formerly incarcerated people and underserved communities from accessing banking products and services. These barriers include high minimum account and identification requirements.
What is second chance banking?
Second chance banking helps people who face systemic barriers gain access to financial products and services. Banks who offer second chance banking have accounts with lower requirements and minimal fees. They do not review banking history and they allow additional ways for customers to prove their identity. They manage risk by limiting features on those accounts.
Helping formerly incarcerated people to regain their financial freedom
Many people who have been incarcerated are underbanked and do not have proper identification, which prevents them from opening a bank account. Second chance banking helps them get financial footing after they are released from incarceration.
“It's incredibly important to provide banking services and financial education to formerly incarcerated people as soon as possible, so they have the resources to help them build credit, save money, and achieve sustainable financial independence.” - Nancy Eiden, founder and board member of First Step Alliance
Read more about second chance banking and where to find banks with second chance account options here: https://www.businessinsider.com/personal-finance/what-is-second-chance-banking