A Note from our CEO, Scott Soderberg

It’s easy to assume that everyone has some sort of banking institution they use to handle their finances. Truth be told, there are about 5.6 million households (4.2%) that don’t have a bank account or access to banking services, according to the Federal Deposit Insurance Corporation (FDIC). The good news is the number of people without a banking services account (the “unbanked”) has been declining over the last 15 years or so. The bad news is that those who are unbanked are increasingly relying on alternative (and more expensive) non-bank methods such as check-cashing services, payday loans, Buy Now Pay Later (BNPL) programs at retailers, pawn shops, and payment apps like Venmo and PayPal.

There is a second category of those who do have a traditional bank account (checking or savings) but also use some of the non-bank services listed above—the “underbanked”. The FDIC found that about 19 million households (14.2%) are in this group, and that trend is growing. Aiding that trend are technological start-ups that are constantly churning out new financial alternatives at break-neck speed.

What does all this mean? Like all things that are important to you, your choice of who handles your finances should be made only after you do your homework. The methods mentioned above regularly include taking a percentage of checks cashed, charging very high interest rates and fees on loans or advances, and assessing huge penalties if strict repayment terms are not followed. Maybe the most important thing to know, however, is that money stored in most payment apps is not federally insured. While they have their place (particularly if they are connected to a bank account), it is risky to keep meaningful sums in those apps.

I’ll give you three guesses where I think you should partner for all your financial needs, and the first two don’t count. Our people at FNC Bank have always understood what truly matters to you in banking, and know the difference between real financial expertise, value and safety vs. the latest “banking” trend that looks good on the surface. WE really do banking.