National Federation of Community Development Credit Unions 2013 Annual Conference Baltimore, MD June 6, 2013

National Federation of CommunityDevelopment Credit Unions

2013 Annual ConferenceBaltimore, MD

June 6, 2013

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ASSET PLATFORM FINANCIAL PRODUCTS PILOT

June 2012 – February 2013

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Pilot Goal

Test whether appropriate products,

combined with coaching, can result

in better outcomes for the client

and better uptake and lower risk of

default for the product providerAssetPlatform Financial Products Pilot

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ASSET PLATFORM FINANCIAL PRODUCTS PILOT

June 2012 – February 2013

AssetPlatform Financial Products Pilot

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DATA REVIEW


NUMBER OF CLIENTS


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ASSET PLATFORM PILOT REPORTED CLIENTS:INCOME

less than $20,00060%

$20,000 to $29,000

20%

$30,000 to $39,000

12%

$40,000 to $49,000

2%

greater than $50,0002%

Decline to Answer4%


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ASSET PLATFORM PILOT REPORTED CLIENTS:EMPLOYMENT

Full-Time30%

Multiple Jobs6%Part-Time

16%

Self-Employed4%

Unemployed31%

Retired1%

Disabled5%

Other2%

Decline to Answer5%


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ASSET PLATFORM PILOT REPORTED CLIENTS:AGE

<190%

19-2926%

30-3931%

40-4921%

50-5916%

60-694%

70+1%

Decline to Answer1%


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ASSET PLATFORM PILOT REPORTED CLIENTS:RACE

Black53%

Asian1%

Hispanic11%

Mixed1%

Native Amer-ican0%

White30%

Other3%

Decline to Answer2%


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ASSET PLATFORM PILOT REPORTED CLIENTS:FAMILY STATUS

42%

34%

12%

4%3%

3% 0%1%

1%single-no dependents

single-with dependents

married-with dependents

married-no dependents

divorced-with dependents

divorced-no dependents

widowed-with dependents

widowed-no dependents

Decline to Answer



ASSET PLATFORM PILOT – PRODUCT RESULTS

CFR Prepaid Debit Card 136 card enrollments (funding of the enrolled cards at 46 percent, more than twice the industry average of 20 percent)

Mango Money Card 108 click-throughs to the Mango card enrollment site (due to restrictions by the issuing financial institution, we were not able to track enrollments)

Emerge Loan 8 loans approved (of 38 applications made)

Bill Float Loan no loans reported (although there were regular visits to the site by Pilot organizations)

CREDIT UNION PILOT


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Credit Union Pilot - Goal


Original Goal

To create partnerships between two fragmented sectors comprised of mostly small, under-resourced entities, often with little knowledge of each other.

Reframed Goal

Moved from being about products – most particularly small-dollar loan products – to being about introductions and the development of relationships between credit unions and CBOs, with products being only one aspect – and typically a later aspect - of the partnership.

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Credit Union Pilot - Activities


Engaged a third-party credit union field coach to work in fostering partnerships Created an online searchable Credit Union Financial Products Directory Recruited 12 nonprofit organizations from among the Pilot’s Learning Cohort who

were interested in developing or deepening a relationship with a credit union partner

Held a Credit Union Mixer webinar Hosted Credit Unions 101, a webinar attended by more than 150 people Introduced the CBOs and credit unions to each other based on the degree of fit Researched credit unions to explore fit with Pilot nonprofits Worked together with the credit unions and nonprofits to set up initial meetings Coached the nonprofits, when desired, in how to approach the initial conversation

and explore possible partnership projects Followed up with nonprofits about results


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ASSET PLATFORM CREDIT LOCATOR

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ASSET PLATFORM CREDIT LOCATOR


ASSET PLATFORM CREDIT UNION FINANCIAL PRODUCTS LOCATOR

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Obstacles to partnerships• Most community-based organizations do not understand what credit

unions are and how they operate.• Many credit unions have little understanding of community-based

organizations and perceive them as serving clients who may be difficult and unprofitable to serve.

Third party facilitation can• Help them to understand everything they need to know about each

other.• Help them explore all possible ways to develop a successful partnership.• Help the credit union realize there is a huge opportunity to both serve

the underserved and do it in a way that covers the credit union’s costs and makes a small surplus.

• Help the credit union develop products and services that they do not provide that would be essential to the partnership.

• Stress the importance of tracking and measuring the impact of the partnership.


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Steps in developing a partnership for a community-based organization interested in working with a credit union

• Identify a credit union or credit unions in their area with a field of membership that can serve their clients.• Identify the best person to approach at the credit union. The smaller the

credit union, the more important it is to speak to the CEO/President, while at a medium or large credit union, it might be the Lending Vice President; the Marketing Vice President, or the assistant to the CEO.• Realize that many small credit unions have limited resources and might not

have the capacity to take on any new projects and partnerships.• Deal upfront with the credit union’s concern, if any, that referred clients

are not going to be “profitable” members for the credit union. Make a business case for partnering.


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Steps in developing a partnership for a community-based organization interested in working with a credit union – continued

• Start with low risk activities – e.g., working on joint financial literacy activities for youth or on tax preparation/VITA activities, as opposed to new financial products.

• Generally, the best first step in the relationship is partnering on activities, rather than products.

• In the process of partnering, try to identify what characteristics of both products and clients might work for both partners, letting the product development emerge from the relationship.


Asset Platform Pilot – Examples of Successful Credit Union/Nonprofit Matches

Example 1: Cambridge, MA

Contact at Credit Union: Marketing Director

Activities: a commitment for working on a financial education “Reality Fair” at the

local high school (to be held in 2014)

the possibility of setting up college savings accounts for families with middle school children

working with clients of the nonprofit interested in opening accounts or needing credit-building products

possibly presenting the banking sessions during nonprofit’s financial literacy classes

AssetPlatform Financial Products Pilot27

Asset Platform Pilot – Examples of Successful Credit Union/Nonprofit Relationships

Example 2: Tucson, AZ

Contact at Credit Union: Business Development Coordinator

Activities: credit union staff present at tax site during this past tax season to set up

accounts and explain services they offer

credit union staff offer one-on-one financial consultations every other month to clients of the nonprofit

credit union to help locate an individual from the credit union staff or Board to serve on the loan committee for the nonprofit's new microloan program

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For more information or any questions, please contact:

Kirsten Moy, [email protected]

Jan Simpson, [email protected] 202-736-5844

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mailto:[email protected]

mailto:[email protected]

Documents

National Federation of Community Development Credit Unions 2013 Annual Conference Baltimore, MD June 6, 2013