NATIONAL FINANCIAL LITERACY DAY: Pan American Bank and KIPP LA Raices Academy Launch Pilot Program

East Los Angeles-based Pan American Bank today announced the successful launch of an economic development program that seeks to strengthen the economic foundation of East Los Angeles through a comprehensive asset building program that is focused on East Los Angeles’ youth.

On Tuesday, April 27, 2010 (National Financial Literacy Day) Pan American Bank, KIPP LA’s Raices Academy charter school and the East Los Angeles Financial Literacy Task Force launched the KIPP ON SAVING financial literacy and asset building program.

KIPP ON SAVING is a pilot program developed to encourage families to begin saving for their children’s future.  Through the KIPP ON SAVING program every child is provided with a savings account that is initially funded by Pan American Bank.  The Bank does not assess maintenance fees nor a minimum deposit requirement until the child turns 18 years old.

“In December 2009 the FDIC released a study that indicated that Latino communities in Los Angeles and Orange counties were 40% unbanked or underbanked.  The pilot program rolled out at KIPP LA’s Raices Academy eliminates the barriers to the banking mainstream by reaching out to youth with a no-cost pre-funded savings account,” said Pan American Bank CEO Jesse Torres.  “There are approximately 28,000 children, K through 12, in East Los Angeles.  Pan American Bank has committed to funding 14,000 savings accounts over the course of two years.  Many schools, both charter and public, enlisted in the program before the pilot program was completed.  By eliminating the barriers to the banking mainstream the next generation of East Los Angeles residents will grow up economically empowered and experienced asset builders.  In the timespan of one generation we can significantly improve the economic foundation in East Los Angeles.”

The East Los Angeles Financial Literacy Task Force is comprised of local stakeholders that include local nonprofits, representatives from local, state and federal elected officials, and public and charter school representatives.  Photos from the pilot program launch can be found at bit.ly/kipponsaving.

Established in 1964, Pan American Bank is California’s oldest Latino-owned bank.  Headquartered in East Los Angeles, Pan American Bank serves the needs of the Latino communities in Los Angeles and Santa Ana.  Founded by former U.S. Treasurer Romana Acosta Banuelos, the Bank has stayed true to its mission of transforming and empowering Latino communities through banking relationships built on trust, service, respect, communication, and guidance.  Pan American Bank’s Facebook page can be found at bit.ly/pab-facebook.  The Bank’s blog is found at PanAmericanBank.blogspot.com.  Pan American Bank can be followed on Twitter at @PanAmericanBank.

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