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BOSTON – Thursday,
March 4, 2021 - As part of the Walsh Administration’s work to reduce
racial and economic disparities in banking access, Mayor Martin J. Walsh
and the Mayor’s Office of Financial Empowerment (OFE) today announced
that its Bank On Boston initiative has partnered with USALLIANCE
Financial to design a free, easy-to-use checking account that meets the
needs of Boston’s unbanked and underbanked residents.
With the creation
of Dora Everyday Checking, USALLIANCE Financial becomes the first
regional financial institution to meet Bank On national account standards for safety and affordability. Among these
standards is the elimination of overdraft fees, which disproportionately
affect low-income households. A recent study found that more than 80% of the nearly
$12 billion in overdraft fees charged by large banks in 2019 were
shouldered by just 9% of account holders.
“One of the most
basic requirements for financial security and building wealth is having a
safe place to bank without the fear of unfair penalties and fees,” said
Mayor Walsh. “We thank USALLIANCE Financial for its partnership in
providing Boston residents with a banking product that is accessible,
fair, and free.”
Mayor Walsh
launched Bank On Boston in 2017 to connect Boston residents with reliable
financial services that can help them save, grow, and access their money.
Approximately 10% of Boston residents do not have a checking or savings
account. Many of these residents may rely instead on costly check-cashing
services, which proliferate in low-income communities and communities of
color. Roxbury, Dorchester, and East Boston account for 57% of Boston’s
check-cashing locations but only 12% of the city’s commercial bank
branches. Bank On Boston focuses on alleviating these banking disparities
to ensure equal access to financial stability.
A full-service
credit union based in New England and the Mid-Atlantic, USALLIANCE
Financial participates in a network of more than 40 ATM locations
throughout Boston, including at retail sites such as 7-Elevens.
USALLIANCE Financial’s new app-based account, Dora Everyday Checking,
comes with no hidden fees and features instant debit card freeze-ability,
free ATM access, and early pay with direct deposit. The app is available
in English and Spanish.
"It's been a
wonderful experience to partner with Bank On Boston as their commitment
to providing inclusive financial products and services to underserved
communities aligns so well with the product and mission of USALLIANCE
Financial," said Kristi Kenworthy, Managing Director of Bank Dora, a
division of USALLIANCE Financial. "Our Dora application is paving
the way with a completely digital, bilingual, free checking account to
help people begin asset building. I'm excited to see what the future
holds as we work together with Bank On Boston in helping the
underbanked."
Since its
inception, Bank On Boston has collaborated with financial institutions to
provide residents with account options that meet safety and affordability
standards. Currently, nine bank and credit union partners offer products that meet Basic Banking for Massachusetts standards for low-cost checking and savings
accounts. USALLIANCE Financial is one of three institutions that also
meet Bank On national account standards, a set of 15 benchmarks for
safety and affordability that include the elimination of overdraft fees.
In addition to
connecting residents with non-predatory financial services, Bank On
Boston also raises public awareness of mainstream banking, expands access
to financial education, and connects residents to other OFE programs. The
initiative is led by the Bank On Boston Coalition – a partnership of 34
financial institutions, regulators, and community-based organizations –
which now includes USALLIANCE Financial.
The Bank On Boston
Coalition is one of 80 state and local coalitions that make up the national Bank On movement, led by the nonprofit Cities for
Financial Empowerment (CFE) Fund. With the addition of Dora Everyday
Checking, accounts meeting Bank On national account standards are now
available at over 28,000 branches in all 50 states and Washington, DC;
financial institutions with Bank On certified accounts make up over 45%
of the national deposit market share.
“Bank On Boston is
doing critical work to help Bostonians enter the financial mainstream –
this is especially important during the COVID-19 pandemic, as consumers
need to access and manage their money, including emergency payments like
stimulus and unemployment, safely and affordably,” said David Rothstein,
Senior Principal at the CFE Fund. “USALLIANCE Financial’s Dora account
offers Boston residents who are looking to improve their finances a safe,
affordable, and truly useful mainstream banking product; we thank
USALLIANCE Financial for offering this terrific account and being at the
forefront of national banking access efforts. | 
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