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Doorways to Dreams (D2D) Fund . Mission : to strengthen the financial opportunity and security of low and moderate income consumers by innovating, incubating, and stimulating new financial products and policies. Non-Profit 501(c)3 based in Allston, MA Wide range of work
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Doorways to Dreams (D2D) Fund • Mission: to strengthen the financial opportunity and security of low and moderate income consumers by innovating, incubating, and stimulating new financial products and policies. • Non-Profit 501(c)3 based in Allston, MA • Wide range of work • Promoting savings bonds at tax time • Incentivizing routine savings with prizes • Teaching finance with casual video games • Comodifying emergency savings • Shaping the fintech & mobile app space
Prize-linked Savings Concept A dynamic approach: • Greater potential for impact • Reach a diverse set of consumers • Fosters innovation A game-changing experience: • PLS bundle – saving + entertainment + aspiration • Fun! Engaging! • Reframe from desire/sacrifice to immediate reward, possibility, suspense
Prize-linked Savings Features Motivates building and keeping savings: • More you save, more chances to win • Prize structure can incent certain behaviors • e.g., greater odds of winning if savings held for longer period Principal Protection: • There are no losers – all deposits are safe Prize money: • Paid from interest on deposited funds
Save to Win History • In 2009 MCUL, D2D, Filene set up Save to Win • Launched with 8 credit unions • Based off of the ability for credit unions to offer raffles under state law • Expansion to Nebraska (2012), North Carolina (2013), and Washington (2013)
Save to Win Product Description • 12-month share certificate • Opening deposit: $25 • Unlimited deposits • One withdrawal allowed in 12-month period • Prizes! • Large, headline prizes (from $20,000-$100,000) • Many, smaller, monthly prizes • Credit union specific prizes
Who does Save to Win Serve? • In 2013 in all states between 70-78% of accountholders met at least one measure of financial vulnerability and: • 36-69% were Low to Moderate Income (below $40,000 HH income) • 50-57% were non-savers • 35-45% were asset poor
What is the Impact? • Over 40,000 unique accounts between 2009 and 2012 saving over $70,000,000 • Between 2011 and 2012, 82% “rolled over” or kept their accounts open for another year • Financially vulnerable and non-vulnerable accountholders reopened their accounts for another year at the same rate
Opportunity in New York • In 2013, NYS Legislature passed PLS bill • Partnership with NY Credit Union Association, National Federation of CDCUs • Chance to participate in NY roll-out in 2014