Comptroller Mendoza Announces Record Milestones in Latest Bank On Illinois Report

Illinois State Comptroller Susana A. Mendoza released the sixth annual Bank On Illinois Annual Report this week, detailing unprecedented growth in statewide financial inclusion, consumer protection, and access to safe, affordable banking services—while underscoring the urgent need to address localized banking disparities across the state.

Established under Comptroller Mendoza’s leadership through Public Act 101-0427 in 2019, the Bank On Illinois initiative connects “unbanked” and “underbanked” individuals to certified checking and savings accounts with no overdraft fees, low or zero opening deposits, and minimal monthly costs.

Unbanked individuals do not have a bank account, and underbanked people may have an account, but often use costly check cashing services and payday lenders to handle their financial transactions.

According to the latest report, as of 2024 in Illinois, more than 373,855 accounts have been opened across 62 participating financial institutions, generating over $11 billion in total deposits ($3.7 billion in direct deposits and $7.3 billion in non-ACH deposits). Illinois now ranks fourth in the nation for certified products, offering 67 certified checking accounts statewide and trailing only California, New York, and Texas.

"When families lack access to traditional, insured bank accounts, they are forced into the shadows of the financial system—paying thousands of dollars over a lifetime in check-cashing fees, predatory payday interest, and prepaid card surcharges," said Comptroller Mendoza. "Bank On Illinois is working. By expanding certified, fee-free accounts across our state, we have helped hundreds of thousands of Illinoisans keep their hard-earned money and take a meaningful step toward financial security."

Key Highlights from the Annual Report:

• Declining Unbanked and Underbanked Rates: The statewide unbanked rate has steadily fallen to 4.4% (down from 5.6% in 2022), while the underbanked rate has dropped to 10.1%, demonstrating tangible progress in bringing residents into the financial mainstream.

• Broad Geographic Footprint: Bank On accounts are actively held in 1,043 of Illinois’ 1,384 ZIP codes, ensuring coverage across urban, suburban and rural communities.

• New Product Additions: During the reporting cycle, six new accounts gained Bank On certification, including offerings from Earthmover Credit Union, Cathay Bank, Republic Bank of Chicago, Quorum Federal Credit Union, United Missouri Bank (UMB), and PNC Bank.

• State Agency Integration: Bank On Illinois collaborates with other state agencies like the Department of Employment Security (IDES), Department of Human Services (IDHS), Department of Corrections (IDOC), Department of Children and Family Services (DCFS), and the Secretary of State (ILSOS). This allows residents receiving state benefits, payroll, or transition assistance to receive funds securely via direct deposit rather than fee-heavy paper checks or prepaid cards.

• Small Business & Predatory Lending Protections: In addition to household banking, the initiative expanded partnerships with community groups and chambers of commerce to connect emerging small businesses to affordable capital, while backing vital consumer safeguards such as the Predatory Loan Prevention Act (PLPA), which caps consumer loan APRs at 36%.

Looking ahead:

In response to the recent closure of 153 commercial bank branches across Illinois, the Bank On Illinois Commission—chaired by Comptroller Mendoza—is executing a three-year strategic plan focused on three core pillars:

1. Expanding Access to Safe, Affordable Banking: Partnering with the Illinois Department of Financial and Professional Regulation’s (IDFPR) Banking Districts program to eliminate banking deserts in rural and downstate areas.

2. Deepening Financial Empowerment and Education: Integrating hands-on financial literacy programs into high schools, community colleges, and local service organizations.

3. Strengthening Infrastructure and Federal Reporting: Expanding financial institution participation in the Federal Reserve Bank of St. Louis National Data Hub to ensure data-driven policy decisions.

"While we celebrate this remarkable progress, our work is far from finished," Comptroller Mendoza added. "We must ensure that downstate communities, rural regions, and neighborhoods disproportionately impacted by branch closures have equal access to trusted financial partners. Bank On Illinois will continue leading the country in breaking the cycle of financial exclusion."

It’s estimated that a worker without a bank account loses roughly $40,000 in lifetime fees—money that belongs in savings.