Robert Zdenek & Sehar Siddiqi, National Neighbors Silver of NCRC

Robert Zdenek & Sehar Siddiqi

Age-Friendly Banking

May 21, 2013

National Community Reinvestment Coalition

Formed in 1990 to develop and harness the collective energies of community reinvestment organizations from across the country to increase the flow of private capital into traditionally underserved communities.

Mission to increase fair and equal access to credit, capital, and banking services/products for low- and moderate-income communities, because discrimination is illegal, unjust and detrimental to the economic growth of underserved communities in the United States and around the world.

About National Neighbors Silver

Multi-year campaign to empower, organize and support economically vulnerable older adults. Combining advocacy, organizing and direct service, the campaign promotes access to responsible banking services and adequate housing for older adults.

Working with the banking industry, aging network and housing experts, National Neighbors Silver offers a platform for policy and program solutions to build economic security and preserve wealth for aging America.

Our Partners

National Neighbors Silver

• Older adult population to increase from 35 million in 2000 to 72 million in 2030

• NCRC members noticed increased fraud and abuse

• 20% of older adults subject to fraud and abuse

Why Age-Friendly Banking?

• Decline of three-legged stool – Savings, Pension, Income Supports

• Growing economic stress• 75% of all older adult households are

economically vulnerable• 19% are unbanked

Why Age Friendly Banking Cont.

• Difficulty with aging in place• Homes are not designed to be age-friendly• Transportation limitations

• NCRC and Atlantic Philanthropies asked what are banks doing?

Why Age Friendly Banking Cont.

• Needed $500 to fix truck• Offered “advance” from national bank• Bank took $500 plus $50 fee from Social Security

direct deposit – leaving Annette $700 for month• Annette forced to continue taking “advances”• Since December 2007 Annette had to take 62

direct-deposit advances to cover costs from first advance

• Bank has made $2,952.50 in fees

Annette Smith, Age 69

• Survey and interviews of 14 large banks

• Interviews with aging experts, advocates and federal regulators

Methodology

• Financial institutions lack well developed data on older adult customers.

• No single bank developed an array of comprehensive products and services aimed at older adults.

• Fraud and abuse is rampant and underreported.

Findings

• Protect older adults from fraud and abuse Require bank employees to report elder fraud and abuse.

• Customize financial products and services for older adultsOffer single, transparent, low-cost, low-fee account for older adults.

Principles

• Expanding Affordable Financial Management Create older adult focused financial education materials.

• Accessing Critical Income SupportsBank branches should provide benefit screens.

Principles

• Facilitate Aging in the CommunityCreate loan products for home repairs and modifications.

• Improve access to bank locations and services

Encourage age-friendly branch and website design.

Principles

Next Steps

What’s Next for Age-Friendly Banking?

Next Steps

• Upcoming Age-Friendly Banking papers and additional research

• Launch local Age-Friendly Banking campaigns to engage older adults

• Develop learning community focused on Age-Friendly Banking

Next Steps

• Encourage regulators to incorporate Age-Friendly Banking Standards for financial institutions

• Support financial institutions in reaching out to older adult customers

We look forward to your participation!

National Neighbors Silver

Robert Zdenek, Directorrzdenek@ncrc.org