TLDR:

• PNC Bank has launched a new bank branch on wheels in Phoenix to promote financial literacy among underserved populations.
• The 30-foot banking truck makes regular stops outside affordable housing complexes and nonprofits serving low-income communities.
• Visitors to the truck can have conversations with PNC bankers, set up checking accounts, apply for loans or mortgages, and use the on-board ATM.
• About 5% of Phoenix households do not have a bank account, while another 17% are considered “underbanked.”
• PNC Bank aims to educate individuals on the benefits of having a banking relationship and the financial risks associated with relying on non-bank money services.

New bank branch on wheels brings financial services to underserved Phoenix communities

PNC Bank has launched a new initiative to promote financial literacy among underserved populations in Phoenix. The bank has introduced a 30-foot banking truck that is making regular stops outside affordable housing complexes and nonprofits that serve low-income communities. The truck is staffed by PNC bankers from traditional brick-and-mortar branches.

According to David Crummey, the vice president and community development officer for PNC Bank in Arizona, the bankers on the mobile branch have conversations with people, regardless of whether they are PNC Bank customers or not. They discuss goals, offer budgeting guidance, and allow individuals to set up checking accounts on the spot. Crummey states, “It’s pretty much everything you can do in a regular bank branch, but on wheels.”

Aside from basic banking services, visitors to the truck can also apply for loans or mortgages, as well as use the on-board ATM that offers withdrawals in small denominations. Crummey highlights that these services are crucial for underserved communities, as research from the nonprofit Prosperity Now shows that about 5% of Phoenix households do not have a bank account. Additionally, 17% of Phoenix households are classified as “underbanked,” meaning they have a bank account, but rely more frequently on non-bank money orders, check-cashing services, or payday lenders.

Crummey emphasizes that these financial practices can be risky and expensive for individuals. He estimates that individuals who do not have a banking relationship or direct deposit are losing hundreds of dollars per year. He also highlights the security provided by having an FDIC-insured account. He states, “It’s hundreds of dollars a year that they could be taking home if they had direct deposit or a banking relationship, plus just the security of having an FDIC-insured account.”

PNC Bank’s mobile banking initiative is currently available in six other U.S. cities, with Phoenix being the seventh city where these services are being offered. The aim of the program is to raise financial literacy and promote the benefits of having a banking relationship among underserved communities.