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

National Federation of Community Development Credit Unions 2013 Annual Conference Baltimore, MD June 6, 2013. ASSET PLATFORM FINANCIAL PRODUCTS PILOT June 2012 – February 2013. Pilot Goal

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

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

  2. ASSET PLATFORM • FINANCIAL PRODUCTS PILOT • June 2012 – February 2013

  3. 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 provider AssetPlatform Financial Products Pilot

  4. ASSET PLATFORM • FINANCIAL PRODUCTS PILOT • June 2012 – February 2013 AssetPlatform Financial Products Pilot

  5. AssetPlatform Financial Products Pilot

  6. AssetPlatform Financial Products Pilot

  7. AssetPlatform Financial Products Pilot

  8. DATA REVIEW AssetPlatform Financial Products Pilot

  9. NUMBER OF CLIENTS AssetPlatform Financial Products Pilot

  10. ASSET PLATFORM PILOT REPORTED CLIENTS: INCOME AssetPlatform Financial Products Pilot

  11. ASSET PLATFORM PILOT REPORTED CLIENTS: EMPLOYMENT AssetPlatform Financial Products Pilot

  12. ASSET PLATFORM PILOT REPORTED CLIENTS: AGE AssetPlatform Financial Products Pilot

  13. ASSET PLATFORM PILOT REPORTED CLIENTS: RACE AssetPlatform Financial Products Pilot

  14. ASSET PLATFORM PILOT REPORTED CLIENTS: FAMILY STATUS AssetPlatform Financial Products Pilot

  15. ASSET PLATFORM PILOT – PRODUCT RESULTS CFR Prepaid Debit Card136 card enrollments (funding of the enrolled cards at 46 percent, more than twice the industry average of 20 percent) Mango Money Card108 click-throughs to the Mango card enrollment site (due to restrictions by the issuing financial institution, we were not able to track enrollments) Emerge Loan8 loans approved (of 38 applications made) Bill Float Loanno loans reported (although there were regular visits to the site by Pilot organizations) AssetPlatform Financial Products Pilot

  16. CREDIT UNION PILOT AssetPlatform Financial Products Pilot

  17. 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. AssetPlatform Financial Products Pilot

  18. 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 AssetPlatform Financial Products Pilot

  19. AssetPlatform Financial Products Pilot

  20. ASSET PLATFORM CREDIT LOCATOR

  21. ASSET PLATFORM CREDIT LOCATOR

  22. ASSET PLATFORM CREDIT UNION FINANCIAL PRODUCTS LOCATOR AssetPlatform Financial Products Pilot

  23. 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. AssetPlatform Financial Products Pilot

  24. 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. AssetPlatform Financial Products Pilot

  25. 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. AssetPlatform Financial Products Pilot

  26. 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 Pilot

  27. 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 AssetPlatform Financial Products Pilot

  28. For more information or any questions, please contact: Kirsten Moy, kirsten.moy@aspeninst.org Jan Simpson, jan.simpson@aspeninst.org 202-736-5844

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