Financial education delivers solid foundations

Also by John Hope Bryant, founder, Operation HOPE Inc.

According to the FDIC, nearly 6 million U.S. households do not have a bank account. These households are disproportionately located in communities of color, have low or modest incomes, and spend more time and money on "alternative" financial transactions than do those with bank accounts. These instruments include costly pay-day loans, check cashing services, money orders and pawn shop loans, and they can damage financially strapped consumers, trapping them into cycles of debt that only worsen their situation.

Avoiding financial traps like this is critical to increasing financial resilience and helping consumers to achieve their financial goals. The starting point for most people is to learn the basics — how to budget, save and build credit; how to avoid financial mistakes, and how to build strong financial foundations. Over time, these efforts add up and can increase people's financial health, along with community stability and growth.

Strong, sustainable communities require good financial health across the board. At Bank of America, we work with clients to set a foundation, build and strengthen credit, and save if they can, to help them achieve their financial goals. More than 600 of our financial centers have been designed for community banking, providing solutions and services focused specifically on helping clients build financial literacy and resilience.

As the first bank to be certified in financial health by J.D. Power, we believe it's essential to integrate financial health concepts into every client touchpoint, focusing on the five key pillars of simplifying finances, managing money by setting goals and tracking spending to enhance financial security, leveraging experts for advice, getting help when needed and accessing assistance when significant events occur, and building financial knowledge through education and resources.

One part of our approach to improving community financial health is through our partnership with Operation HOPE. Two years ago, we began a test-and-learn program, called HOPE Inside, through which Bank of America refers clients to certified professional financial coaches who, at no cost, will help them learn money management skills, re-establish and improve credit and reduce debt.

Operation HOPE has helped 4 million people nationwide and has directed approximately $4 billion in capital to support underserved communities.

As of the end of the third quarter of 2022, Bank of America associates had referred nearly 2,600 individuals to HOPE Inside financial well-being coaches and hosted more than 300 financial education workshops. On average, clients who participated in the HOPE Inside program improved their FICO scores by 21 points, increased their yearly savings by $4,313 and reduced their annual debt by $837.

The success of HOPE Inside has made it clear that this is an investment worth making. Bank of America has expanded this program from four locations in two markets, Atlanta and Los Angeles, to 180 community banking locations in 17 markets including Atlanta, Baltimore, Boston, Brooklyn, Charlotte, Chicago, Dallas, Detroit, Houston, Los Angeles, Miami, Northern New Jersey, Philadelphia, Phoenix, San Antonio, San Francisco and Washington, D.C.

Through the HOPE Inside program, Bank of America continues to be a trusted partner to help uplift communities. In partnership with Operation HOPE, the goal is to ensure that everyone has access to the 'American Dream.' This includes empowering individuals and families with financial wellness education and other resources. Using HOPE's scalable model, the expansion of HOPE Inside at Bank of America can positively impact communities—and ultimately do well by doing good.

When people understand how financial know-how enables their short-term needs and long-term goals, they become more confident about making financial decisions today and in the future. HOPE Inside empowers people in a way that'' largely unprecedented—investing in them, as well as the communities in which they live, work, and do business.