I. INTRODUCTION
The FDIC is seeking insured institution volunteers to participate in the FDIC Model Safe Accounts Pilot. The pilot was approved by the FDIC Board of Directors on August 10, 2010,and is a case study designed to evaluate the feasibility of banks offering safe and low-cost transactional and savings accounts, particularly those that are responsive to the needs of underserved consumers. Pilot institutions must offer electronic deposit accounts with core product features identified in the FDIC Model Safe Accounts Template and are encouraged to offer auxiliary services also identified in the template.
II. DESCRIPTION OF FDIC MODEL SAFE ACCOUNTS TEMPLATE
The FDIC Model Safe Accounts Template is a roadmap for accounts that would be available to all consumers, but would be particularly responsive to the needs of underserved and low- and moderate-income consumers; pilot banks are strongly encouraged to market the products to those groups. Pilot banks that currently use data from third-party consumer reporting agencies (such as credit bureaus) to assess the risk of opening a new account are encouraged to explore ways to ensure that their use of the data does not preclude otherwise qualified individuals from opening these accounts. While the FDIC is interested in encouraging innovation in account design, accounts offered by pilot banks are expected to follow the following guidelines set forth in the template:
III. PILOT PARAMETERS AND REPORTING
The FDIC Model Safe Accounts Pilot is expected to run over the course of one year, with on-going quarterly evaluations. The FDIC will collect data on the viability of the accounts about 45 days after the end of each quarter. Information collection will focus on the volume, use, success, and profitability of the accounts. Individual reports submitted by institutions will remain confidential, and the FDIC will publish general findings from the pilot.
The FDIC recognizes that insured institutions are volunteers and that their information systems vary widely. The FDIC will work with insured institutions to help these institutions provide the best data possible. Information will not be used to subject participating institutions to additional examination scrutiny beyond the regular supervisory process. Participation in the pilot will have no effect on examination frequency.
IV. APPLICATION PROCESS AND ELIGIBILITY
Insured institutions with existing transactional or savings account programs that meet the core product criteria identified in the template are encouraged to apply, but institutions interested in offering new accounts also may submit applications. Institutions may apply to have a transactional account program, savings account program, or both entered into the pilot. The FDIC is particularly interested in institutions that offer both types of accounts.
Applicants should provide a brief description of the insured institution’s account programs, any information necessary to ensure that the accounts meet the criteria identified in the template, and a description of the insured institution’s marketing efforts related to the accounts. This information should be provided to SafeAcctPilot@fdic.gov by September 15, 2010.
To be eligible for participation in the pilot, insured institutions must be well-managed and well-capitalized. An insured institution must have been in operation for more than 3 years, must currently have a Community Reinvestment Act (CRA) rating of satisfactory or better, and should have Safety & Soundness and Compliance ratings of 1 or 2, but 3-rated institutions will be considered on a case-by-case basis. The FDIC retains the right to refuse to allow any insured institution to participate.