Employment
& Wealth
Generation

Expanding Access Through Financial Inclusion

The financial needs of the communities that Regions serves are as diverse as the tools required to meet those needs. Regions is committed to providing all customers — from the unbanked and underbanked to the very wealthy, and from small businesses to corporate clients — access to the preferred financial tools, industry-leading products, and expert advice and guidance we offer. Today, Regions is a model for the industry in offering a full range of alternative financial services to customers who do not have an account relationship with the Bank.

Reaching the Unbanked and Underbanked

The Federal Deposit Insurance Corporation’s 2019 survey, “How America Banks,” found that the percentage of U.S. households that were unbanked (i.e., in which no member of the household had a bank or credit union account) had fallen to 5.4 percent, or approximately 7.1 million households, nationwide—the lowest point since the survey began in 2009. In most of Regions’ footprint, however, the percentage of unbanked households is significantly higher, reaching 12.8 percent in Mississippi, 11.4 percent in Louisiana, 8.1 percent in Tennessee, and 7.6 percent in Alabama.

These individuals typically struggle to use mainstream financial products because of one or more challenges. They may have low- or volatile-income constraints, as with workers whose hours change weekly, perform seasonal work, or rely on service tips for the majority of their income. Others may have credit challenges such as subprime credit, thin credit, or no credit file at all.

To serve this population, Regions created Regions Now Banking^®, an innovative way to provide unbanked and underbanked customers access to alternative financial services from a trusted financial institution, at a lower cost, while offering a pathway to becoming fully banked in the future.

For millions of households, managing money means using cash-based alternative financial services. With Regions Now Banking, we offer these services without requiring the customer to have an existing account relationship with us, while still meeting the regulatory requirements for customer identification and verification. Regions Now Banking customers can access services such as prepaid cards, check cashing, money remittances, in-person bill payments, and money orders. In addition, Regions Now Banking customers can take advantage of Regions’ financial education and other tools.

Regions Now Banking Services

Homeownership

In spite of a pandemic and unprecedented mortgage volume in 2020, Regions remained committed to satisfying the homeownership needs of the communities it serves. Throughout the year, we sought to advise, guide, and educate concerning the economic benefits of homeownership, both individually and aggregately to the community. Recognizing the value that homeownership offers to our communities, Regions is dedicated to helping our customers, the unbanked and the underbanked achieve homeownership.

As evidence of this pledge, Regions took the following actions in 2020:

• Strengthened our partnership with Regions Next Step and the Regions Financial Wellness team to provide homebuyer education virtually across our footprint.
• Created and implemented the Regions FirstHome Assist Down Payment Assistance grant program, offering up to $4,000 toward down payments to low- and moderate-income (LMI) borrowers in designated markets.
• Adjusted credit criteria on certain products, enabling more LMI borrowers to qualify for homeownership.
• Implemented stronger management oversight of mortgage sales and prospecting activities in our communities, ensuring appropriate outreach is conducted consistently.
• Added a new Consumer Fair Lending Manager to assure the implementation of a strong and effective lending and service program.
• Grew staffing of Community Loan Officers to focus on the lending and service needs of our communities.
• Enhanced the internal reporting processes for Community Reinvestment Act (CRA) and Fair Lending results.

Our Mortgage team supports home ownership in our emerging markets by offering a variety of products, including affordable mortgage products, which seek to meet the specific needs of LMI borrowers. Through our own Affordable Mortgage suite of portfolio products, Regions provides these borrowers the opportunity to become homeowners with a cash investment of as little as $500, based on borrower eligibility, without the added cost of mortgage insurance.

Small Businesses

Regions recognizes the role that small businesses play in supporting economic development and job creation, and we are committed to providing the tools and support, including financial education, that allow small businesses to grow and move forward. As part of the Regions360® approach to banking, our bankers provide small business customers with advice, guidance, and education and work to understand and uncover their needs in order to provide the best products and services to meet their financial goals. Regions’ Small Business products and services include business banking services; lending and credit opportunities; and tools for managing cash and assets, payroll, and benefits. Regions provides a variety of small business financing options, starting with loans as low as $5,000.

Additionally, as a lender certified by the SBA, Regions assists its customers by providing federally guaranteed loans for small businesses through the PPP.

Regions also shows our support for small businesses and community cultivation through our investments. Within our portfolio of agency-backed products, Regions invests in CRA-eligible residential and commercial mortgage-backed securities that help fund affordable housing in the United States. In 2020, Regions invested approximately $514.5 million in CRA-qualified investments. Regions also makes CRA-qualified community development investments through our investment in Small Business Investment Companies (SBICs) funds, which help finance small businesses. In 2020, Regions’ CRA-eligible fund investments resulted in the allocation of an additional $11 million in CRA credits.

• Inner City Capital Connections: One of the ways Regions supports small businesses is through our partnership with Inner City Capital Connections (ICCC). Through these programs, entrepreneurs in or near urban or economically underserved communities received business training, insights on management and marketing, and one-on-one coaching to strengthen their businesses. ICCC training is provided by noted business school professors, leaders in the fields of management and finance, and our bankers. Customized coaching is also delivered by local professionals whose expertise can help small-business owners develop strategies to reach more customers and, over time, create additional jobs. We have sponsored ICCC programs since 2014.
• Financial Wellness Seminars: Through the Regions Next Step Elevate program, our bankers conduct financial education seminars and provide other solutions for businesses seeking to foster the financial wellness of their employees, all at no cost to the employer. Regions’ financial wellness relationship managers work with small businesses and other employers to help their employees take control of their financial future, while encouraging their success in the workplace and beyond.

Supporting Service Members & Veterans

Approximately 46 percent of all active-duty U.S. military personnel reside within Regions’ footprint. At Regions, we are committed to supporting members of the U.S. military and their families. We understand that service members face unique challenges. Frequent moves, active-duty requirements, overseas deployment—all of these can make managing finances more complicated. We are proud to help support the members of the military, veterans, and their families by offering specialized financial services, including:

• Servicemembers Civil Relief Act benefits, including loans, lines of credit, and mortgages.
• Focused SBA lending.
• Veterans Affairs (VA) loans that help eligible veterans, active service members, and spouses purchase a home.

Our Service Members and Veterans Affairs Manager focuses on the needs of this group, whether they are a customer, an employee, or a member of our community.

Accessibility of Banking Services

Regions provides special accommodations for certain Bank services, facilities, privileges, and products that empower customers with disabilities to bank independently and with ease. As a part of our commitment to accessibility, the Bank’s 2,000 ATMs have speech-output and voice-instruction capability, with earphone jacks for privacy.

For blind customers or customers with low vision, we offer braille, large-print, or audio CD bank statements; online PDF bank statements for savings and checking accounts; general-purpose reloadable debit cards in a text-to-speech format; sight checks printed with raised lines; and assistance with reading, filling out, and completing forms. For customers who are deaf or hard of hearing, Regions offers the acceptance of telecommunication relay service calls, Teletype / Telecommunications Device for the Deaf (TTY / TDD) connectivity through the Regions Contact Center, and a sign language interpreter upon request in advance.

Regions’ Autism Awareness Initiative, launched in 2016, strives to make our facilities accommodating to people with autism. We work to raise awareness about the condition and to create a friendly and welcoming environment in our facilities. This initiative includes:

• Information for Regions branch associates to assist in handling certain situations and communicating appropriately.
• Offering sensory packs with a stress ball, sunglasses, and noise-canceling earbuds at branches to assist customers with autism who may experience sensory episodes due to noise, lights, and other factors.
• Designated quiet areas in branches that guests and loved ones accompanying them can use until an episode passes.
• Producing an instructional video to explain autism and offer suggestions to Bank associates about how to approach an individual experiencing an episode.
• Partnering with physicians at the University of Alabama at Birmingham and the Autism Society of Alabama to develop and build upon this initiative.

Regions’ Financial Education Strategy: Regions Next Step^®

Regions Next Step is a Company-wide financial wellness program designed to help students, adults, and business professionals take strides toward achieving their unique financial goals. Through Regions Next Step programming, Regions creates shared value by helping associates, customers, and the communities we serve achieve financial wellness.

As a key component of how Regions makes life better, various areas of the Bank contribute to financial wellness programming. Regions Next Step serves as a unifying umbrella, connecting our many financial education offerings to various audiences. This holistic approach provides operational efficiencies, creating synergies, along with a common framework and focus for programming. Regions Next Step audience segments include students from kindergarten to college and adults at various life stages and income levels. Regions Next Step also provides resources for businesses of all sizes.

Delivering financial education with a customer-centric approach is what makes Regions’ approach to financial education unique. During 2020, we initially engaged our audiences through in-person seminars at businesses and community organizations, but as the circumstances necessitated, we quickly pivoted to virtual learning and digital programming, including the launch of a new Weekly Webinar Series; virtual seminars to replace in-person sessions; expansion of Regions Next Step online resources for those experiencing financial hardships; and more.

The accessibility of our resources to all, regardless of whether they are a Regions customer, reinforces our dedication to inspiring, motivating, and helping everyone during their individual financial wellness journey. More information on Regions Next Step content and tools are available at regions.com/nextstep.