Citibank Targets the "Unbanked"

Citibank recently rolled out an account nationally that was tested in the Chicago area. It's designed to serve people who traditionally don't have bank accounts, such as those who don't think they have enough money to put into a bank or people from other countries who don't know the U.S. financial system.

The checkless account allows people to make free, unlimited bill payments through the bank's web site or automated telephone system. Accountholders also receive a debit card for cash withdrawals and point-of-sale purchases.

There is no minimum balance or deposit to open the account or to gain access to Citibank services, though there is a $3 per month fee. The account also features low-cost remittance and funds transfer options. For example, it has an agreement with a major Mexican bank that allows accountholders to send money to relatives in Mexico in real time for as little as $5.

Copyright © 2004 Bankers' Hotline. Originally appeared in Bankers' Hotline, Vol. 13, No. 10, 1/04