Having a bank account, or being banked, provides many benefits: bank accounts are safer, more convenient and cost less than other ways of accessing cash like cashier’s checks and check cashing services. Studies have shown that being unbanked or underbanked is associated with poor saving behavior, poor financial planning and incurring higher costs for all financial transactions. It is estimated that the cost of being unbanked in the United States is around 4 percent of a consumer’s median household income.1

Despite the clear advantages of being banked, minority populations are 5.5 times more likely to be unbanked than non-minority.2 Irving Blue, managing member of EastPointe Realty, Community Builders of Kansas City’s wholly-owned subsidiary brokerage and property management firm, wants to do something about it.

“In talking with our property managers, we learned that 30 to 50 percent of our residents are using money orders to pay their rent,” he said. “Acquiring a money order requires scheduling and the additional time of standing in line to get it – a process that can take up to an hour – and there is a fee involved. Also, a money order is often difficult to process because of legibility.”  

Blue contacted EastPointe’s banking partner, Commerce Bank, to come to its properties and meet one-on-one with residents to provide education on the benefits of having a banking relationship and dispel any myths surrounding banking.

After the meetings residents will be surveyed and based on feedback, additional financial education sessions may be scheduled.

Blue said Commerce has not only helped them provide value added service to EastPointe’s residents but has been an excellent partner to the company as well. “We set up quarterly lunch and learns for our employees and it’s been wildly successful,” he said. “It’s our effort to provide more and better benefits to our associates and in turn have a stronger organization.”

The resident program will begin at Twin Elms Apartments, 41st and Paseo Blvd., in July and then roll out to the rest of the EastPointe Realty properties in Kansas City and St. Louis.

1 https://www.ncbi.nlm.nih.gov/pmc/articles/PMC7173312/

2 https://www.fdic.gov/analysis/household-survey/2019report.pdf