Expanding Access Through Financial Inclusion

At Regions, we recognize that a diverse, equitable, and inclusive workforce is essential to achieving and maintaining a thriving company. Regions has been on a constantly evolving journey toward fostering DEI throughout the organization. Our commitment to DEI starts at the top of our organization, with oversight of our initiatives provided by the Board’s CHR Committee. At the management level, we believe that our work over the past three years, led by our head of DEI and their team, has dramatically improved the sense of belonging felt by all associates. As we strive to enhance our foundational culture of DEI, we encourage associates to move forward on their own journey of understanding, focused on making a positive individual impact on our Company-wide efforts and within the communities where they live.

Unbanked and Underbanked Populations

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’ commitment to financial inclusion requires more than simply having services available. It is critical for Regions to build trust with customers who may feel intimidated by or suspicious of banks. Regions associates are trained to understand and empathize with the unbanked customer. As part of our needs-based conversation process, associates explain to potential customers how the Regions Now Banking products can meet various needs, as well as other services that can help unbanked and underbanked individuals. At the same time, Regions Now Banking products are subject to rigorous internal compliance and risk oversight. The Regions Now Banking services bring new customer households that were previously unbanked consumers to Regions, as well as existing Bank customers from all life stages and customer segments.

Regions Now Banking helps customers take control of their finances and reach their goals using products and services of their choice, with the service, security, strength, and stability of a reputable and trusted financial partner such as Regions:

In response to the COVID-19 pandemic, Regions has waived $1.9 million in check cashing fees on over 95,000 government stimulus checks — including waivers going to Regions Now Banking customers.

In 2021, Regions Now Banking enrollment was added to our self-serve digital “join the bank” process. This new functionality was particularly helpful during the pandemic, giving our customers the ability to enroll in our services using their mobile device anytime and anywhere.

Potential Homeowners

Historically low mortgage rates continued to spur mortgage production in 2021 to near record levels. Despite high production volumes and home affordability challenges across our footprint, Regions remained focused on supporting the homeownership needs of the communities we serve. Throughout 2021, we sought to advise, guide, and educate concerning the economic benefits of homeownership to our communities, both individually and aggregately.

Regions’ Consumer Banking Group took the following actions in 2021 to help our customers, the unbanked, and the underbanked achieve homeownership:

• Created a new Community Market Sales Process Executive position whose role is to expand the Bank’s focus on Community Reinvestment Act (CRA) and fair lending. Through this role, Mortgage sales, Bank Retail leadership, Community Affairs, and other stakeholders work together to ensure we meet the financial needs of customers in low- and moderate-income (LMI) markets and make life better for the communities we serve.
• Authorized permanent funding of $1 million annually for our Regions FirstHome Assist Down Payment Assistance grant program. Additionally, we increased the amount of the grant from $4,000 to $5,000 per loan. These funds are awarded to LMI borrowers in designated markets and used toward the borrowers’ down payments.
• Grew our staff of Community Mortgage Loan Officers (MLOs) by almost 16 percent. While all Regions MLOs have a responsibility and an expectation to support our lending objectives in all markets, these Community MLOs provide concentrated marketing, lending, and educational assistance in our communities to ensure markets understand the value of and the road to homeownership. Since 2018, our team of Community MLOs has grown by 258 percent with more growth planned in 2022.
• Enhanced the Regions Chairman’s Club program to recognize and reward our top performing Community MLOs, bringing awareness to the importance of their activities and their production.
• Adjusted credit criteria on certain affordable lending products, enabling more LMI borrowers to qualify for homeownership.
• Strengthened the education of our sales teams so they could execute the strategies for and achieve the targeted results related to continuous improvement of home lending results in the communities.
• Developed an improved process for capturing mortgage referrals received from our Regions Financial Wellness partners’ delivery of homeownership education seminars throughout the footprint.
• Despite the ongoing pandemic, our Mortgage sales associates continued volunteering, ultimately completing more than double the previous year’s volunteer service hours.

Our Consumer Banking team supports homeownership 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 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 as low as $2,000.

The U.S. Small Business Administration (SBA) furthers the growth and development of small businesses by guaranteeing small business loans made through lending partners nationwide. Regions is proud to be an SBA Preferred Lender and one of America’s most experienced SBA lenders. We assisted our customers through this partnership by providing federally guaranteed loans for small businesses through the SBA’s Paycheck Protection Program (PPP). We distributed over $6 billion in PPP loans, having forgiven 88 percent of total loans through the end of 2021.

Regions also shows support for small businesses and community cultivation through our investments. As part of our CRA investment strategy, Regions invests in Small Business Investment Companies (SBICs), which are privately owned and managed investment funds licensed and regulated by the SBA. SBICs use their own capital to make debt and equity investments in small, independently owned and operated businesses.

• 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 receive 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 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.

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 Autism Spectrum Disorder and to create a friendly and welcoming environment in our facilities. This initiative includes:

• Providing 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.
• Designating 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.
• Collaborating with physicians at the University of Alabama at Birmingham and the Autism Society of Alabama to develop and build upon this initiative.

Financial Wellness Through 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. In 2021, we achieved:

Delivering financial education with a customer-centric approach is what makes Regions’ approach to financial education unique. 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.