TD Takes All Clients into Account

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Dominion Bank (TD) is using an innovative pilot program that specifically targets low income earners as new clients. It can be seen as a financial intervention to prevent them from cashing their social assistance cheques at costly payday lenders.

TD has set up kiosks in government offices in British Columbia to reach out to these vulnerable consumers, in the attempts to grab these customers as they receive their welfare cheques.

In some cases, we are seeing civil servants referring clients to the closest TD branch.

TD had initially embarked on the program, which was called the Direct Deposit Initiative to solve its own cheque cashing problems, in which many surprises sprouted.

What was found was that once the previously un-banked clientele gained access to a standard bank account, the vast majority remained active and profitable customers. A habit even formed of some customers setting aside regular savings despite limited resources.

What is also occurring is that TD staff will be filling out direct deposit forms on the clients’ behalf for social assistance payments, federal tax refunds, GST refunds and child tax credits.

With direct deposits, it ensures that the client gains faster access to their cash, and it makes it less costly for governments as it is less costly to issue electronic money..

For TD, and other banks who do this, it eliminates a lot of time spent handling cheques throughout the day.

Now instead of people paying around $28 to cash their welfare cheques, clients can open a bank account for under $4 a month while having the benefit of the added security of a PIN based debit card.

This program has spread to fourth other British Columbia branches so far.

I am happy to see TD takign this initiative, and of course people taking the time to set up accounts, and ultimately make their life easier in the process.

Since 2006, about 2,000 people have participated in this program, and most have maintained active accounts, with a small number having opened savings accounts.

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