Banking On Bikes

Thanks to a new partnership between Capital Bikeshare, Bank on DC, United Bank, and the District Government Employees Federal Credit Union (DGEFCU), previously unbanked Washington, D.C. residents now have the opportunity to kill two birds with one stone: sign up for a debit or credit card and access a growing regional network of shareable bikes. An announcement from DDOT reads, “The partnership was conceived to promote a healthy and environmentally-friendly form of transit, along with the benefits of financial stability and security.”  In exchange for opening an account with the participating institutions, Bank On DC account holders get a $25 discount off an annual membership for Capital Bikeshare (bringing the cost to $50). While it will be interesting to see if this reduced rate is affordable for the target population, the initiative is an exciting example of creative thinking and cross-sector collaboration.

According to the national Bank On website, 12.2% of households in D.C. are unbanked (over 30,000 people), meaning they have no checking or savings account. Northeast and Southeast D.C. have even higher rates: Bank On’s interactive map tool shows numerous census tracts in these areas with 17% or more of households unbanked. Without access to financial services, families face limited options for managing money and often struggle to save. Lack of savings can severely diminish prospects for economic mobility. A Pew Economic Mobility report A Penny Saved is Mobility Earned showed that children from low-income but high saving families were more likely to move up the income ladder than peers in low-income but low saving families (71% of kids in high saving bottom quartile families move up compared with just half of low saving bottom quartile families). Intergenerational mobility is of particular concern for communities of color where families have historically not been as able to pass down assets to children.  Accessible financial services are a key part of this equation.

The 2010 American Community Survey shows that well over a quarter of D.C. residents have no access to a vehicle. Expanding the Capital Bikeshare program to be more inclusive of low-income communities will help families who cannot afford to own a car to be more physically mobile. (For those not familiar with Capital Bikeshare, members use a unique key fob to rent a bike and can return it to any other station around the city. Trips under 30 minutes have no additional charges beyond the initial membership fee.) Enhanced physical mobility offers a range of benefits, from improved access to job opportunities, grocery stores, and other services to the health benefits of increased exercise. Biking has even been linked to social inclusion: when people participate more actively in the public space they enjoy a sense of belonging and have interactions they might not have otherwise. While bicycling is not feasible for every person at all times (people with disabilities, the elderly, parents with small children, and others will face added barriers to mobility), biking remains a remarkably cheap and efficient way to travel – particularly for short trips, which the Capital Bikeshare model is uniquely designed for.

The reduced $50 cost for membership may still represent a hurdle for families living paycheck-to-paycheck. Nevertheless, the announcement of this partnership represents an exciting multi-faceted approach to a series of overlapping and complex problems, as well as the potential to solidify the connection between economic and physical mobility. The partners involved should be commended for helping to break down some of the structural barriers that keep D.C. families stuck (economically and physically).