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LSS Financial Counseling Service
GET CHECKINGTM
Providing Access to Mainstream Financial Services
Eleanor LewisGet Checking Program Manager
LSS Financial Counseling Service
MN SavesMay 15, 2008
LSS Financial Counseling Service
Introduction
• According to the Federal Reserve Board, over 40 million consumers do not have a bank account.
• Lack of financial education is the primary factor so many consumers are ill-equipped to handle basic financial management tasks, making them less likely to succeed within the financial mainstream.
• Many communities recognize the value of financial literacy as a key component in community development initiatives.
LSS Financial Counseling Service
Target Audience
• Unbanked (i.e., never-banked)• Underbanked• Formerly banked
– ChexSystems
LSS Financial Counseling Service
Never Banked Formerly Banked
Underbanked
Inadequate income
Lack of financial education
Undocumented
Poor/no credit history
Distrust of banks
Inadequate income
Lack of financial education
Poor/no credit history
ChexSystems Listing
Distrust of banks
Inadequate income
Lack of financial education
ChexSystems Listing
Poor/no credit history
Get Checking: Target Customers
LSS Financial Counseling Service
ChexSystems
• Part of eFunds corporation• Debit bureau• Risk assessment tool• 9,000 financial institution customers• Approximately 8 million consumers listed
LSS Financial Counseling Service
Overview of Get CheckingTM
• Get Checking provides financial institutions and community organizations a master blue print for developing financially responsible consumers.
• Through deposit management education and practical application, consumers who were once locked out of mainstream banking will now have access to build assets.
LSS Financial Counseling Service
Overview of Get CheckingTM
• Get Checking is a four hour educational program that develops basic financial knowledge and practical skills to successfully manage and maintain a deposit account.
• The education efforts of Get Checking help consumers build a solid financial foundation and take the next steps towards building assets within the financial mainstream.
LSS Financial Counseling Service
History of Get CheckingTM
• Inspired by a Milwaukee banker who wanted to address the need for mainstream banking opportunities in that market.
• Designed in 1998 by University of Wisconsin Extension and a coalition of community organizations, financial institutions and social service agencies in Milwaukee, WI.
• eFunds supported the development of the Get Checking curriculum and joined as a national partner in 2001.
LSS Financial Counseling Service
Get CheckingTM Program Eco-System
CONSUMER
EFUNDS CORP -CHEXSYSTEMS
FINANCIAL INSTITUTION
EDUCATIONALPARTNER
normal opening procedures followed
and due diligence performed
educational partner conducts classes and sends graduates back to referring financial
institution
consumers declined a deposit account are provided a brochure
for Get Checking classes
consumer comes into financial institution and inquires about opening an account
LSS Financial Counseling Service
Program Objectives
• Short term• Increase in awareness about:
– Spending plans– How to work with financial
institutions • Intention to:
– Create a spending plan– Open a checking account– Check their credit score
• Long term– Create and use spending
plan– Open the account– Keep the account in good
standing
LSS Financial Counseling Service
Get CheckingTM Curriculum
• Chapter 1: Introducing the Get Checking Program
• Chapter 2: Choosing an Account that is Right for You
• Chapter 3: Managing Your Checking Account• Chapter 4: Keys to Successful Money
Management and Credit
LSS Financial Counseling Service
FI Partner Requirements
• One time monetary contribution• Refer consumers to Get Checking• Agree to open an account for anyone with a
certificate of completion• Attend one class per year• Provide product brochures• Track account openings and closings
LSS Financial Counseling Service
Program Success
• Nationally, 95% of graduates maintain accounts in good standing one year later
• Nationally, almost 18,000 graduates• In Minnesota, 130 graduates
LSS Financial Counseling Service
History of Get CheckingTM in Minnesota
• Provided exclusively by LSS Financial Counseling Service
• Two and a half years• Twin Cities Metro, Duluth/Superior, St. Cloud,
Rochester, Fargo/Moorhead• 15 financial institution partners in Twin Cities
LSS Financial Counseling Service
MN FI Partners
• Anchor Bank• Associated Bank• City & County Credit Union• City-County Federal Credit Union• Endura Financial Federal Credit Union• Guaranty Bank• Hiway Federal Credit Union• M & I Marshall & Ilsley Bank• MidCountry Bank• South Metro Federal Credit Union • Star Choice Credit Union• Teacher Federal Credit Union• TopLine Federal Credit Union• US Bank• US Federal Credit Union
LSS Financial Counseling Service
Program Challenges
• Class requirements• Class schedule• Population size• Changing market/Divergent directions of
financial institutions
LSS Financial Counseling Service
Response to Challenges
• Creative Referral Programs• Streamlined Classes• New Target Population
LSS Financial Counseling Service
Future of Get CheckingTM in MN
• Focus on Twin Cities metro area