Expanding Access Through Financial InclusionThe financial needs of the communities that Regions serves are as diverse as the tools required to meet those needs. Regions has displayed a commitment to providing all customers — from the unbanked and underbanked to the very wealthy, and from small businesses to corporate clients — access to the preferred financial tools, industry-leading products, and the expert advice and guidance we have to offer. Today, Regions is a model for the industry in offering a full range of alternative financial services to customers who do not have an account relationship with the Bank.
Reaching the Unbanked and Underbanked
According to the latest Federal Deposit Insurance Corporation’s (FDIC) Survey of Unbanked and Underbanked Households (2017), there are approximately 8.4 million unbanked households, defined as one in which no member of the household has a bank account, and approximately 24.2 million underbanked households, where the household uses a combination of bank products and alternative financial services, in the United States.
These individuals typically struggle to use mainstream financial products because of one or more challenges. They may have low- or volatile-income constraints, such as workers whose hours change weekly, perform seasonal work or rely on service tips for the majority of their income. Others may have credit challenges such as subprime credit, thin credit or no credit file at all.
To serve this population within our footprint, Regions has created an innovative way to provide unbanked and underbanked customers access to alternative financial services from a trusted financial institution, at a lower cost, while offering a pathway to becoming fully banked in the future. This unique commitment to financial inclusion has made Regions a leader among financial institutions.
Regions Now
Banking households
Regions Now Banking customers who opened a traditional deposit account within the last 12 months
For millions of households, managing money means using cash-based alternative financial services. With Regions Now Banking®, we offer these services without requiring the customer to have an existing account relationship with us. Once enrolled, Regions Now Banking customers have access to services such as prepaid cards, check cashing, money remittances, in-person bill payments, and money orders. In addition, Regions Now Banking customers can take advantage of Regions’ financial education and other tools. Regions Now Banking helps customers take control of their finances and reach their goals using products and services of their choice, with the service, security, strength and stability of a reputable and trusted financial partner like Regions. In 2020, we plan to add Regions Now Banking enrollment to our self-serve digital “join the bank” process.
Regions’ commitment to financial inclusion requires more than simply having services available. It is critical for Regions to build trust with customers who may feel intimidated by or suspicious of banks. Regions associates are trained to understand and empathize with the unbanked customer. As part of our needs-based conversation process, associates explain how the Regions Now Banking products can meet various customer needs, as well as other services that can help the formerly unbanked customer. At the same time, Regions Now Banking products are subject to rigorous internal compliance and risk oversight. The Regions Now Banking customer segment is one of the fastest-growing within the Company, and it includes both previously unbanked consumers and existing Bank customers using Regions Now Banking services.
Home Ownership
For many who live within the markets we serve, home ownership is an elusive dream. Market perceptions regarding down payment requirements and overall home affordability, especially among the unbanked and underbanked, discourage many from becoming homeowners. However, Regions believes home ownership provides a pathway to true financial wealth, which, in turn, strengthens our communities. As a result, Regions is fully committed to helping our customers achieve home ownership and, in furtherance of this commitment, took the following actions in 2019:
- Implemented a standardized sales, service and coaching process so our conversations with borrowers are focused on their financial needs and the optimal financial solutions Regions can deliver.
- Improved the Regions360® Branch-to-Mortgage referral process. In 2019, closed mortgage referrals had already seen a 119 percent increase year-over-year, with improved results reported across Regions’ footprint.
- Evaluated mortgage-related initiatives through the cross-functional Unbanked and Underbanked Taskforce to meet the home financing needs of the unbanked and underbanked population.
- Expanded our internal Community Reinvestment Act (CRA) and Fair Housing Consumer Banking Playbook to emphasize a broader and stronger commitment to serving the financial needs of both our low- and moderate-income (LMI) and minority borrowers.
- Hosted an inaugural Consumer Fair Lending Summit bringing leaders from various areas of the Bank together to define strategies to ensure superior lending and service results to these market segments.
- Developed a strategic marketing plan to support the Regions Affordable Mortgage product suite, which provides financing to LMI borrowers or to those borrowers purchasing homes in designated LMI census tracts. This plan is scheduled for implementation in 2020.
Our Mortgage team supports home ownership in our emerging markets by offering a variety of products, including affordable mortgage products, which seek to meet the specific needs of LMI borrowers. Through our own Affordable Mortgage suite of portfolio products, Regions provides these borrowers the opportunity to become home owners with a cash investment of as little as $500, based on borrower eligibility, without the added cost of mortgage insurance.
Small BusinesSES
Regions recognizes the role that small businesses play in supporting economic development and job creation, and we are committed to providing the tools and support, including financial education, which allow small businesses to grow and move forward. As part of our Regions360® approach to banking, our bankers provide small business customers with advice, guidance and education, and work to understand and uncover their needs in order to provide them with the best products and services to meet their financial goals. Regions’ Small Business products and services include business banking services; lending and credit opportunities; and tools for managing cash and assets, payroll and benefits. Regions provides a variety of small business financing options, starting with loans as low as $5,000. Additionally, as a lender certified by the Small Business Administration, Regions has and will continue to assist its customers by providing federally guaranteed loans for small businesses through the Paycheck Protection Program, which was established under the Coronavirus Aid, Relief, and Economic Security (CARES) Act. For more information about Regions’ participation in this program, please refer to Regions’ Form 10-Q for the quarter ending March 31, 2020.
Regions also shows our support for small businesses and community cultivation through our investments. Within our portfolio of agency-backed products, Regions invests in CRA-eligible residential and commercial mortgage-backed securities that help fund affordable housing in the United States. In 2019, Regions invested approximately $500 million in CRA investments. Regions also makes CRA-qualified community development investments through our investment in Small Business Investment Companies (SBIC) funds, which help finance small businesses. Regions invested approximately $16 million in CRA-eligible investments that supported the growth of small businesses during 2019.
- Inner City Capital Connections. One of the ways Regions supports small businesses is through our partnership with Inner City Capital Connections (ICCC). In 2019, Regions and community partners brought two no-cost business training programs to nearly 150 business owners in Memphis and St. Louis. Through these programs, entrepreneurs in or near urban or economically underserved communities received business training, insights on management and marketing and one-on-one coaching to strengthen their businesses. ICCC training is provided by noted business school professors, leaders in the fields of management and finance and our bankers. Customized coaching is also delivered by local professionals whose expertise can help small-business owners develop strategies to reach more customers and, over time, create more jobs. We have been a major sponsor of ICCC programs since 2014.
- Financial Wellness Seminars. Through the Regions Next Step® Elevate program, our bankers conduct financial education seminars and provide other solutions for businesses seeking to foster the financial wellness of their employees, all at no cost to the employer. Regions’ financial wellness relationship managers work with small businesses and other employers to help their employees take control of their financial future, while encouraging their success in the workplace and beyond.
Supporting Our Service Members and Veterans
At Regions, we are committed to supporting the men and women of the U.S. military and their families. We understand that service members face unique challenges. Frequent moves, active duty requirements, overseas deployment — all of these can make managing finances more complicated. We are proud to help support the members of the military, veterans and their families through financial benefits, community involvement and a dedicated Service Members and Veterans Affairs Manager, whose job is focused on the needs of this group. Read more about Regions’ commitment to service members at regions.com/about-regions/military-commitment. Regions is also a proud sponsor of the annual Birmingham Veterans Day parade, the largest in the nation.
Accessibility of Banking Services
Regions provides special accommodations for certain Bank services, facilities, privileges and products so that our customers with disabilities can bank independently and with ease. As a part of our commitment to accessibility, the Bank’s 2,000 ATMs have speech-output and voice-instruction capability, with earphone jacks for privacy.
For persons who are blind or have low vision, we offer braille, large-print or audio CD bank statements; online PDF bank statements for savings and checking accounts; general-purpose reloadable debit cards in a text-to-speech format; sight checks printed with raised lines; and assistance with reading, filling out and completing forms. For persons who are deaf or hard of hearing, Regions offers the acceptance of telecommunication relay service calls, Teletype/Telecommunications Device for the Deaf (TTY/TDD) connectivity through the Regions Contact Center and a sign language interpreter upon request in advance.
Regions’ Autism Awareness Initiative, launched in 2016, strives to make our facilities accommodating to people with autism. We work to raise awareness about the condition and to create a friendly and welcoming environment in our facilities. This initiative includes:
- Training for Regions branch associates to recognize autism and know how to react to situations and communicate appropriately.
- Offering sensory packs with a stress ball, sunglasses and noise-canceling earbuds at branches to assist customers with autism who may experience sensory episodes due to noise, lights and other factors.
- Designated quiet areas in branches that guests and loved ones accompanying them can use until an episode passes.
- Producing an instructional video to explain autism and offer suggestions to Bank associates about how to approach an individual experiencing an episode.
- Partnering with physicians at the University of Alabama at Birmingham and the Autism Society of Alabama to develop and build upon this initiative.
