UC Davis has entered into a 10-year agreement with U.S. Bank that will provide nearly $3 million to support student services and bring the campus its first bank branch.

U.S. Bank is counting on advertising privileges and a new campus identification card — with a bank logo on the back and optional ATM access — to help generate new customers.

Although the agreement had its beginnings in 2005 with a campus study and competitive process, its implementation now will help sustain student services through more recent state budget cuts.

“By forging public-private partnerships,” said Fred Wood, vice chancellor for Student Affairs, “the university has embraced a much-needed entrepreneurial spirit, one that balances the unique needs of our community with opportunities to generate new revenue.”

Bank logos on ID cards

The agreement will establish a bank branch in the Memorial Union Building on campus next summer; add six U.S. Bank ATMs this spring to the existing seven on campus that belong to five banks and credit unions; and allow for limited advertisements and signage featuring U.S. Bank at certain campus events and facilities.

In addition, the university next fall will roll out a new card for employee and student identification. The card will offer optional access to U.S. Bank’s debit and ATM services and display a small bank logo on the back.

Financial management

U.S. Bank is guaranteeing the university annual payments of $130,000 to $780,000 a year based on the number of banking accounts activated; the partners estimate an average annual payment of $280,000.

The bank will also offer optional financial literacy and credit management seminars for students.

Wood said he recognizes that there are concerns about corporate partnerships at a public university. In developing the bank partnership, Student Affairs adopted a set of guiding p rinciples that require “a process that is open, fair and competitive, consultative, and readily available for scrutiny and discussion.”

In 2005, the university invited multiple banks to submit a proposal for financial services on the campus — U.S. Bank was selected. The university has been involved in contract negotiations and campus consultations since then.

Financial Services Partnership Agreement (PDF)

Agreement between Student Affairs and ASUCD concerning proposed partnership and related sponsorship activity (PDF)