California Banker Issue 2 2025

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California government not more trusted than banks Advocates assume the state seal would attract new cus tomers, but the unbanked population’s trust in banks (56.3 percent) is nearly identical to trust in California government (57 percent). This casts doubt on whether CalAccount would appeal to unbanked individuals. Furthermore, the study did not investigate how many unbanked people might be intentionally avoiding gov ernment tax and child support levies. New mandates on businesses and landlords AB 1365 would require employers with more than 10 employees to offer CalAccount direct deposit, contrac tors with over 25 workers to use CalAccount payments, and all landlords to accept CalAccount rent payments. These extensive mandates would impact nearly every business and property owner in California.

Private-sector alternatives exist Banks and credit unions are already addressing un banked populations through the BankOn program. This initiative provides safe, affordable transaction ac counts with low fees, no overdraft charges, and robust banking capabilities. With many California financial institutions already participating, promoting BankOn would be a more cost-effective and lower-risk approach than AB 1365.

Chris Shultz is Vice President, Government Relations for the California Bankers Association. He formerly served as chief deputy commissioner at the California Depart ment of Financial Protection and Innovation.

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Session Dates: August 17–29, 2025 Location: University of Washington, Seattle, WA

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