The New York State Insurance Fund issued a request for information seeking resources from local financial institutions to connect unbanked injured workers with safe, affordable bank and credit union accounts. With guidance from the Cities for Financial Empowerment Fund, the initiative targets accounts that meet Bank On National Account Standards, including no overdraft charges and low or no fees. The initiative would enable more injured workers to receive compensation through direct deposit rather than mailed checks, avoiding check cashing fees and payment delays. Direct deposit delivers benefits seven to 10 days faster, and enrollment has risen 81% since 2022. The New York State Department of Financial Services encouraged qualifying institutions to participate, having previously allowed state regulated banks to offer Bank On certified accounts as an alternative to the New York Basic Banking Account.
New York State Insurance Fund seeks bank partnerships to connect injured workers with affordable accounts
The New York State Insurance Fund is seeking information from local financial institutions on connecting unbanked injured workers with Bank On certified accounts. The initiative aims to expand access to direct deposit, which delivers compensation seven to 10 days faster and avoids check cashing fees.