Split to Save Presentation

Transcription

1 Split to Save Presentation 2017

2 Contents Introduction of Founding Organizations Overview of Direct Deposit and Split Deposit Overview of Workers and Savings Habits Overview of Split to Save Campaign Initiative

3 About NACHA ACH Network $41 Trillion 24 Billion Transactions

4 About America Saves

5 About America Saves Savers who joined America Saves in 2011 reported saving $7,000* since joining America Saves What females and males reported saving for differed widely. Females heavily favored saving for an emergency fund, while males heavily favored saving for retirement The most important saving goals for savers include: Emergency Fund, Retirement, and Debt Repayment Savers tell us that since they joined America Saves they feel more hopeful about their financial situation, they are saving more, and they are managing their debt better

6 About epayresources The second-largest Regional Payments Association Providing payments expertise, professional development, and industry leadership Serving financial institutions and businesses for 40 years Member services include education, publications, compliance support, risk management resources, and advocacy Headquartered in Dallas Offices also in Virginia, North Carolina, Florida, and Alabama Follow us on Twitter LinkedIn, and Facebook

7 Direct Deposit and Split Deposit Direct Deposit is the electronic deposit of pay directly to a checking or savings account Split Deposit enables an employee to direct a fixed amount or percentage of their pay into a savings or investment account each pay period

8 Direct Deposit and Split Deposit Safe Free Fast Environmentally Friendly Time Saver Helps employees better manage finances and save automatically

9 Direct Deposit and Split Deposit 82% of workers use Direct Deposit but Only 24% use Split Deposit

10 Direct Deposit and Split Deposit 87% of Direct Deposit users are very satisfied with it 73% of Split Deposit users like it

11 Direct Deposit and Split Deposit Nearly 3 in 4 Direct Deposit users say their employer first made them aware of it More than 60% of employees claim that their employer s practices influenced their choice to use Direct Deposit

12 People Save Automatically Savings Methods Used Direct payroll deposit 49% Automatic electionic fund transfer 44% ATM or teller 36% Mobile app 25% Logging into website 23% Mail, Telephone 7% Prepaid debit card 4% 0% 10% 20% 30% 40% 50% 60% 2015

13 People Save Through Traditional Accounts Savings Products Used Bank savings account 64% Credit union savings account 37% Checking account 34% Safe place at home 21% Money market account 15% Brokerage account 12% Certificate of deposit 10% Christmas club account 9% 529 or other education savings plan 9% Savings bond 7% Savings option on prepaid debit card 4% 0% 10% 20% 30% 40% 50% 60% 70% 2015

14 Lack of Saving Problem is majority not saving- national savings rate approx. 4% People ages are the most likely of any age group to have no emergency savings. Bankrate.com 46% of Americans do not have $400 readily available to cover an emergency expense Federal Reserve The average employee spends 28 hours each month worried about, calculating, or stressed over finances, costing employers $5,000 a year in lost productivity. Federal Reserve 2010 Path to increased debt - Repeat payday loans account for 76% of total volume *-By Leslie Parrish and Uriah King Center for Responsible Lending July 9, 2009

15 People Don t Think They Can Save 50% of household decision makers believe they just don t earn enough money to save regularly. Majority of those in the under $25,000 (61%) and $25,000 $49,999 (64%) income brackets feel discouraged from saving for this reason. $50,000 $99,999 category, half (50%) feel their income level is a barrier to saving regularly. And one quarter (26%) in the $100,000 or more category are inclined to believe that their income is insufficient to allow them to save on a regular basis HOUSEHOLD FINANCIAL PLANNING SURVEY A Summary of Key Findings July 23, 2012 Prepared for: Certified Financial Planner Board of Standards, Inc. and the Consumer Federation of America Prepared by: Princeton Survey Research Associates International

16 The Best Way to Save - Automatically That s where we get our paycheck and access to direct deposit: 82% of employees in U.S. participate in direct deposit With direct deposit we can allocate a % to savings: Of that 82%, only 24% utilize split deposit And we can make it automatic: 85% of split deposit users say it is helping them to save Most common use for split deposits (83%) is for an emergency fund

17 The Opportunity to Increase Personal Savings 92.3% of Americans have a bank account 77.8% of Americans have a savings account (FDIC 2015 National Survey of Unbanked and Underbanked) 82% of U.S. Workers use direct deposit 24% of them split into a savings type account (Javelin 2016)

18 What is Split to Save Split to Save is an outreach effort designed to encourage workers to grow savings through Direct Deposit and Split Deposit Split to Save targets are businesses, large and small, and organizations servicing other businesses and consumers

19 What is Split to Save Split to Save provides customizable resources for organizations to use and share to promote Direct Deposit and Split Deposit Web ads, print ads, articles, social posts, etc.

20 Split to Save Timeline February May 31

21 Join Split to Save Partner with us!

22 Questions? Contact Shanon Murray (703) NACHA The Electronic Payments Association. All rights reserved. No part of this material may be used without the prior written permission of NACHA. This material is not intended to provide