Financial Services Superintendent Maria T. Vullo today announced that the Department of Financial Services (DFS) has approved a new Banking Development District (BDD), Bronx Community District 6, at the opening of a new branch of New York State-chartered Popular Bank. The approved district and branch, which encompasses parts of Bathgate, Belmont, Bronx Park South, East Tremont, West Farms, Fordham University, Arthur Avenue, the Bronx Zoo, The New York Botanical Garden and St. Barnabas Hospital,  will result in the expansion of access to retail banking services and products for consumers in need of establishing or rebuilding their credit and financial education, as well as small businesses and bilingual Spanish speakers.

“Today’s approval, under New York State’s BDD Program administered by DFS, expands access to banking services for all New Yorkers – immigrants and long-time residents, and those in low- and moderate-income neighborhoods,” said Financial Services Superintendent Maria T. Vullo. “Too many New Yorkers in underserved communities often have no choice but to turn to alternative, and sometimes illegal, financial services providers, which at DFS we vigorously protect against. DFS will continue to ensure that more New Yorkers have viable alternatives to predatory products, and that our local communities and businesses can thrive.”

“Since our founding over 50 years ago, we have been dedicated to enhancing the lives of New Yorkers who need it most. This is at the core of the BDD’s mission and one we truly support,” said Paul Mak, New York Metro Region Executive, Popular Bank. “Working together, we want to reduce the number of unbanked and underbanked and ensure they achieve financial health. We are thankful to the NYS Department of Financial Services for their belief in our partnership.”

New York State’s Banking Development District program, administered by DFS, is designed to encourage the establishment of bank branches in areas across New York State where there is a demonstrated need for banking services.  To encourage bank participation in the BDD program, $10 million in subsidized public deposits and other benefits are made available to banks that open or maintain a branch or improve products and services offered in an underserved community.  Banks that successfully apply for a BDD designation are eligible to receive below-market-rate deposits from the state of New York.  These deposits are intended to lower the financial risk that the branch may incur when opening in an underserved community.

The BDD designation in the Bronx’s Community District 6 will allow Popular Bank to increase its efforts to expand access to affordable banking products and services for Hispanic/Latino residents and small businesses within Community District 6 through a branch at 645 East Tremont Avenue. Popular will partner with local organizations such as Acacia Network, school PTA’s and BronxWorks to hold Spanish and Bilingual financial literacy workshops and will offer products including a Credit Building Program with accessible and affordable credit products and services.

For more information on the Banking Development District Program, please see here.