For years, banks in the U.S. have seen record breaking profits. From 2013 to 2022, the six U.S. banking giants (JPMorgan, Bank of American, Wells Fargo, Citigroup, Goldman Sachs, and Morgan Stanley) collectively made $1 trillion in profit. That figure jumps even higher when profits from regional and local banks are included.
Despite that obvious financial success, which has benefited them, their employees, shareholders and, yes, customers, it highlights a critical gap: the majority of banks and other financial services firms are considerably lacking when it comes to using that success to demonstrate genuine social responsibility. Many are simply meeting the minimum Community Reinvestment Act (CRA) requirements, with only a few going slightly further by perhaps offering basic financial literacy programs.
That bar is far too low and the profoundly negative view many people hold towards banks is no surprise. Too many Americans are struggling financially, with millions lacking even minimal emergency savings. The average age of a first-time homeowner has risen by more than a decade in recent years, signaling that that aspect of the American dream is now out of reach for many. It’s no accident that “affordability” has become the dominant bi-partisan buzzword in Washington.
While a variety of industries and factors contribute to the real and perceived affordability gap, financial services firms receive a lot of the blame. But, beyond being lightning rods for criticism, they are also potential catalysts for change. The question is: will they seize the opportunity?
Why This Matters for Reputation
Like many other industries, the financial services sector has an ongoing perception and reputation problem. According to consistent Gallup surveys, only about a third of Americans have a very or somewhat positive view of banks. This isn’t just a perception problem; trust is a leading indicator of performance, customer retention, and regulatory tolerance. [bankingdive.com]
If they want to begin repairing their reputations and rebuilding trust – and they should, banks will need to do more than the bare minimum. Simply checking the boxes to comply with laws like the CRA needs to be abandoned. Instead, financial institutions should view regulatory compliance as the starting point on their social responsibility journey.
What Meaningful Action Looks Like
Going beyond the minimum means moving from transactional compliance to transformational impact. Here are three strategic pillars worthy of consideration:
- Innovative Access Programs
Traditional banking models often exclude the underbanked. Earned wage access programs—such as those championed by EarnIn—help workers avoid predatory lending by giving them real-time access to wages. Similarly, Wells Fargo’s Banking Inclusion Initiative targets the 24 million unbanked or underbanked households with low-cost accounts and financial coaching. These programs aren’t just for marginalized groups—they help everyday Americans living paycheck to paycheck. [wellsfargo.com] - Affordable Housing Investments
Housing affordability is a national crisis, affecting rural and urban households alike. U.S. Bank has committed over $20 billion to affordable housing construction and renovation, financing nearly 150,000 units for families earning 60% or less of area median income. JPMorgan Chase is piloting innovative approaches to preserve and expand affordable housing stock, including partnerships with nonprofit developers and streamlined zoning processes. These efforts address one of the most pressing affordability challenges for millions of Americans. [jpmorganchase.com], [usbank.com] - Community Wealth-Building Partnerships
Programs that pair financial institutions with local nonprofits and municipal agencies can amplify impact. For example, JPMorgan Chase’s research on wealth disparities in Chicago reflects a growing recognition that systemic gaps require systemic solutions. The next step is translating insights into scalable programs for affordable housing, small business lending, and digital banking access.
Who Else is Getting It Right—and Who Isn’t
Doing It Right:
- Associated Bank (client) demonstrates how regional institutions can go further. Their Grace Zone™ overdraft protection provides a $50 buffer before fees apply, directly addressing CFPB findings that banks charge an average $35 fee on transactions of just $24. Combined with their Choice Checking accounts that carry no monthly fees or minimum balance requirements, Associated eliminates the fee traps costing households about $329 annually. While megabanks still extract billions in overdraft revenue, Associated proves affordability innovation is possible at scale.
- OneUnited Bank and Greenwood Bank are two Black-owned banks that are redefining inclusion through no-fee banking, credit-building tools, and financial literacy programs tailored to underserved communities.
- MoCaFi (Mobility Capital Finance) uses mobile platforms to deliver banking services to populations historically excluded from mainstream banking.
Missed Opportunity:
Student loan refinancing remains a glaring gap. While fintechs like SoFi have stepped in, banks could have led with flexible refinancing options, income-based repayment structures, and financial coaching to address this significant issue. Instead, their absence helps reinforce perceptions of indifference to affordability challenges.
The Reputation Dividend
Addressing these issues with meaningful action isn’t charity—it’s self-interested strategy. Banks that lead with purpose and work to rebuild trust can unlock new markets, deepen customer loyalty, and mitigate regulatory risk. More importantly, they can help rewrite the narrative of an industry too often associated with extraction and even exploitation rather than empowerment.
This kind of institutional shift isn’t like flipping a switch. It takes time, dedication, and a clear understanding of what will create the most significant impact. To get buy-in and attract customers, social responsibility efforts must be authentic to each institution and the communities they serve. Success won’t happen overnight, or even from one quarter to the next, but the institutions that take on this work will not only be able to repair their reputations—they’ll future-proof them for the long-term.