Regions Bank partners with Southern Bancorp, CDFIs on system fees

by Talk Business & Politics staff ([email protected]) 843 views 

Regions Bank announced Thursday (Nov. 10) a collaborative agreement with seven Community Development Financial Institutions (CDFIs) and Minority Depository Institutions (MDIs) – including Arkadelphia-based Southern Bancorp – to enable people who bank with those organizations to use Regions’ ATM network without paying the industry-standard out-of-network fee.

Specifically, the agreement covers customers of the following institutions:

Southern Bancorp, a CDFI in Arkadelphia, Arkansas
Carver State Bank, a CDFI and MDI in Savannah, Georgia
Citizens Savings Bank & Trust, a CDFI and MDI in Nashville, Tennessee
Commonwealth National Bank, a CDFI and MDI in Mobile, Alabama
Friend Bank, a CDFI in Dothan, Alabama
Hope Community Credit Union, a CDFI in Jackson, Mississippi
Optus Bank, a CDFI and MDI in Columbia, South Carolina

“Regions Bank is committed to creating more inclusive prosperity, and this collaboration is a key component of our broader, long-term work with CDFIs and MDIs to expand access to essential financial services,” said John Turner, President and CEO of Regions Financial Corp. “This new collaboration will benefit individual consumers in several states. Regions Bank and the Regions Community Development Corporation have also worked closely with CDFIs and MDIs in the past to support business activity in underserved communities, including a series of equity investments. These initiatives illustrate Regions’ dedication to not only providing financial services, but also uplifting communities across our footprint.”

Community Development Financial Institutions (CDFIs) are private financial institutions that are 100% dedicated to delivering responsible, affordable lending to help low-income, low-wealth, and other disadvantaged people and communities join the economic mainstream.

Minority Depository Institutions (MDIs) may be a federally insured depository institution of which 51% or more of the voting stock is owned by minority individuals – or a financial institution that primarily serves minority communities and whose board of directors is primarily composed of individuals from minority backgrounds.

CDFIs and MDIs are often based in small towns, rural areas or urban communities and provide services in areas considered to be ‘bank deserts’ – where the nearest physical bank branch may be several miles away.

“Equitable access to banking is one of the most impactful ways we can eliminate financial barriers and reduce the wealth gap in America,” said Darrin Williams, CEO of Southern Bancorp. “Our institution serves communities in the Mid-South that may not have convenient ways to make withdrawals or even check their balances. This partnership with Regions not only makes banking more accessible for our customers, but it will also help support our communities and, ultimately, our local economies.”