HENDERSON, KY (WFIE) - Henderson leaders are looking for ways to promote money management throughout the county. Today officials made a push for local banks to get on board with Bank On 2.0.
According to Ben Joergens, the director of the financial empowerment for Old National Bank, says some people in the area face financial problems that stem from going through third party vendors for money. Joergens say organizations like pay-day lenders and pawn shops can charge extremely high fees for customers to receive money.
“The average person spends $1,000 a year in fees basically just to do their banking," said Joergens. "Now when you aggregate that over a 40 year working lifetime, which is the average, that equates to $40,000 in fees just to do their regular banking needs.”
Joergens says one reason people turn to third party money vendors because banks can charge a high price for overdraft fees. The Bank On initiative began in Henderson 11 years ago to teach money management skills. Now the second phase, Bank On 2.0, is a push for local banks to create programs that eliminate overdraft fees. Instead the banks would not let a spender pay more money than they have in their account.
Joergens says that this kind of program could help people improve on budgeting and watching what they spend.
“Can it be a little bit embarrassing at times if we don’t have the money? Sure, but it’s much better than paying that high price fee just to get their banking done that day," Joergens says.
Officials say they don’t want this program to be a “one bank” program. They want local banks throughout Henderson County to create a program in line with Bank On.
“I think the more that all banks come together for this one common purpose, to help bank those that are un-banked and under-banked, it really give that community feel and it’s all of us coming together for one common purpose and that’s to help people," Joergens says.