Bank On Kalamazoo County

Similar documents
Bank on Dallas. Finance, Audit & Accountability Committee August 11, City of Dallas. Office of Economic Development

31% 41% 11% 50% 18% PROFILE ASSETS & OPPORTUNITY PROFILE: SAN FRANCISCO KEY HIGHLIGHTS ABOUT THE PROFILE ASSETS & OPPORTUNITY

Banking the Poor Financial Services, Asset-building & Economic Development: New Public Policy Perspectives for Puerto Rico

WE Connect. Financial empowerment innovations in California. Anne Stuhldreher California Asset Building Program New America Foundation

Financial Services for the Underbanked: Why Banks Aren't the Solution

David Silberman Associate Director, Research, Markets, and Regulation Consumer Financial Protection Bureau. April 4, Dear Mr.

HOW TO USE A FINANCIAL INSTITUTION. BUILDING A better FUTURE

Opportunity 1: Lack of Access. Solutions. o Opportunity 2: Too Much Access

Bank on San Francisco An initative to bring all residents into the fi nancial mainstream

Check Cashers and Banker s Discontinuance of Services

RE: Comments on Financial Access Activities, 76 FR 56499

Strengthening Your Capacity to Serve the Underserved

BUILDING STRONGER COMMUNITIES TOGETHER: IMMIGRANTS AND ASSET BUILDING FLORIDA PHILANTHROPY NETWORK SUMMIT FEBRUARY 2017

Financial Empowerment. 500 Families Financially Fit for the Future City of Virginia Beach Community for a Lifetime

Community Jobs Bank Account Pilot Project Results

Lending Strategies 2.0. Carolinas Credit Union League 2015 Leadership Conference October 22, 2015

New Client Implementation Guide

FINANCIAL SERVICES GETTING TO KNOW YOUR FINANCIAL INSTITUTION

SENATE, No STATE OF NEW JERSEY. 218th LEGISLATURE INTRODUCED NOVEMBER 26, 2018

Overdraft Frequency and Payday Borrowing An analysis of characteristics associated with overdrafters

Inventing Products to Serve the Underbanked. Today s Panel

35% 26% 57% 51% PROFILE. CIty of durham: Assets & opportunity ProfILe. key highlights. ABoUt the ProfILe ASSETS & OPPORTUNITY

Underbanked 101. Joshua Sledge, Analyst, Innovation and Research, CFSI CFSI Underbanked Financial Services Forum June 13, 2012

36% 50% 11% 59% 35% PROFILE ASSETS & OPPORTUNITY PROFILE: CHARLOTTE KEY HIGHLIGHTS ABOUT THE PROFILE ASSETS & OPPORTUNITY

February 14, Dear Ms. Naulty:

Ken Goodgames Chief Executive Officer Transformance

Alice Coday Jennifer Meissner

Bank On It. Participant Guide. FDIC Financial Education Curriculum

January 22, SUBJECT: Comments on Request for Information on Small-Dollar Lending (RIN 3064-ZA04)

Introducing CashPay. The payroll card that delivers convenience and purchasing power. CashPay Card Guide

Table of Contents. Company Profile...1. Letter to the Stockholders...3. Financial Highlights...5. Growth & Expansion...7. Community Banking...

Economic Inclusion Programs and Services

C E. Check Cashers. Direct Deposit. Identification to Open a Bank Account

Maximum Charge Updates

The National Community Reinvestment Coalition

BRINGING UNBANKED HOUSEHOLDS INTO THE BANKING SYSTEM

The Michigan Update. Special Edition: Michigan Budget and More - June In This Issue

CHAPTER 5-THE BANKING SYSTEM. Section 1- Checking Accounts

Economic Inclusion FLORIDA PROSPERITY PARTNERSHIP S 9 TH ANNUAL STATEWIDE TRAINING CONFERENCE. Penny King and John Olsen FDIC Community Affairs

FMS & HR Tax Screening Services. An FMS Best Practice Tax Credit and Incentive Service

Turning everyday people into money heroes! Impact of Payday Lending on Families in Greater Grand Rapids. Original Report: July 7, 2015

Banking the Poor: Policies to Bring Low-Income Americans Into the Financial Mainstream

Financial Wellness and Economic Inclusion

PUBLIC BANK LA. Overview. Vote Yes on Charter. Amendment B. publicbankla.com

WORKSHOP CHALLENGE PAPER. Faisel Rahman Founder of Fair Finance, UK

The Present and Future of Bank On Account Data. Pilot Results and Prospective Data Collection

In Baltimore City today, 20% of households live in poverty, but more than half of the

WHAT YOU NEED TO KNOW ABOUT THE RETIREMENT PROCESS

Prepaid Cards and Consumer Protections

Capturing Community Strengths and Opportunities in Urban Markets

The CFSI Underbanked Consumer Study Underbanked Consumer Overview & Market Segments Fact Sheet

Flip the SWITCH for Better Banking

39% 22% 56% 49% 35% 60% PROFILE. Assets & opportunity ProfILe: winston-salem ANd forsyth CoUNtY. KeY HIgHLIgHts. AboUt the ProfILe

A CFSI inbrief on the Underbanked Consumer Study Characteristics of Latino Un- and Underbanked Consumers

1999 Annual Report National Headquarters 2600 Telegraph Road Bloomfield Hills, MI Member FDIC

Age-Friendly Banking Definitions

10% 21% 37% 24% 71% 10% PROFILE ASSETS & OPPORTUNITY KEY HIGHLIGHTS ABOUT THE PROFILE ASSETS & OPPORTUNITY PROFILE: NEW ORLEANS

# Answer % 7 Financial institution 20%

Lending to ITIN and Immigrant Markets. Alejandra Seluja CU Breakthrough

Comparing a Stratified Random Sample of Banks to Safety and Affordability Guidelines

Financial Inclusion for Immigrant Consumers Roundtable

Meeting the Financial Service Needs Of Mexican Immigrants. A Sur vey of Texas Financial Institutions

Percentage of Unbanked and Underbanked Households in Tenth District States

Compendium of Financial Literacy Resources & Identity Theft Data

The Post Office and Financial Services

Enhancing Financial Inclusion through Cooperatives September 5 th, 2012

CDFI Certification. A Pathway to Growth and Impact

October 28, Jennifer L. Johnson, Secretary Board of Governors Federal Reserve System 20 th and Constitution Ave., N.W. Washington, DC 20551

U.S. Banking System Overview

Cash Only, Thank You

Investor Presentation. February 2015

Building Financial Stability Policies to Help Lower Income Households Access Reasonably Priced Financial Services

Emerging Payment Alternatives for the Unbanked and Underbanked. Dave Beck, SVP and Regional Executive December 8, 2014

Foreign Financial Institutions Anti-Money Laundering Questionnaire

27% 42% 51% 16% 51% 19% PROFILE. Assets & opportunity ProfILe: PortLANd. key highlights. ABoUt the ProfILe ASSETS & OPPORTUNITY

PFIN 5: Banking Procedures 24

Creating a Sustainable Foundation for Financial Inclusion

CONSUMER ACCOUNT DISCLOSURE OVERDRAFT PRIVILEGE

Date Here. Welcome University of Michigan International Students

Community. An Overview of the CDFI Industry. by Brandy Curtis

Big business or small business, these accounts are all business.

Judicial Department Accepting Credit Cards for Fines and Court Costs. February 9, 2012 Presented by Gregg Stahl, Senior Deputy Director

Neighborhood Trust is now poised to scale its effective financial services model and help correct this market failure.

Perspectives. R AISE Texas. RAISE Texas: Moving Texans Toward Financial Success

Draft Model Regulatory Framework for Virtual Currency Activities

Presented by The Office of the Indiana Treasurer of State. August 12, 2014 West Lafayette, Indiana 8/6/2014

M A N I T O B A Order No. 25/14. AND THE CONSUMER PROTECTION ACT March 7, 2014

405 SW 6th Street Redmond, Oregon *

ANNOUNCEMENT BY BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM. Applications and Reports Received or Acted on. During the Week Ending June 24, 1972

2015 SCPC Table of Contents Adoption of Accounts and Payment Instruments

CDFI Credit Unions A Business Case for Community Development Finance. CDFI Institute February 28, 2017

MOM & POP MERCHANT SOLUTIONS. "A Business Loan Alternative Company"

City of Mason Ingham County, Michigan FINANCIAL STATEMENTS. June 30, 2013

Investor Brief: Promoting Financial Inclusion in Canada s Financial Services Sector

Cash America International, Inc. Alternative Financial Services

BUSINESS BANKING BUSINESS CHECKING

Company Profile. Letter to the Shareholders. Financial Highlights. Banking Center Locations. Wholesale Regional Map. Growth and Expansion

United Roosevelt Savings Bank Switch to URSB Kit

JSU Public Policy Student Symposium April 23,2014 Alan Branson Ph.D. Student Public Policy and Public Administration Program

new business account opening form

Transcription:

Bank On Kalamazoo County Bank On Kalamazoo County A proposal to improve the financial lives of low to moderate income citizens in Kalamazoo County.

What is Bank On? A national public-private initiative that links current unbanked (but bankable) households to the financial sector National partners include the Pew Charitable Trust and the National League of Cities San Francisco created the first Bank On program which is being replicated throughout the country Local programs are created by local partners; each is different and tailored to the community being served Four state level Bank On programs exist with more coming onboard all the time (California, North Carolina, Illinois, Indiana) Bank On Michigan is being formed

Jeff Brown, Executive Director, Poverty Reduction Initiative Hannah McKinney, Vice Mayor, City of Kalamazoo Mary Balkema, Kalamazoo County Treasurer Kit Snyder, CEO, Consumers Credit Union Mackenzie Snyder, Latino Market Research Specialist, Consumers Credit Union Peggy Gagen, Community Investment Division Associate, Greater Kalamazoo United Way

1. Provide non-predatory financial services to Kalamazoo s Low to Moderate Income (LMI) unbanked and underbanked citizens. 2. Provide economic opportunity for those with poor or no credit history. 3. Ensure citizens are taking advantage of appropriate tax credits and other government programs. 4. Removing barriers to create a banking environment that encourages the un-banked.

What is the market opportunity in Kalamazoo? Unbanked households rely both on banks and non-bank check cashers to manage their income, using these institutions to cash their paychecks, pay their bills, borrow money, and/or wire money (in addition to buying groceries and gas, in some cases).

Data about the Unbanked in the US, Michigan and Kalamazoo Low to Moderate Income (LMI) citizens are not well served by traditional banking National Estimates of 20-30% of LMI do not have traditional bank accounts LMI citizens are not part of the business model for most banks. Of the 10,000 bank branches opened in the last five years only 1 in 10 is in an inner city. 28 million Americans are unbanked according to FDIC and have $510 Billion in annual income. 205,300 Unbanked Households in State of Michigan.* 8,400 families in Kalamazoo County estimated to be unbanked with 3,300 in the city.* Nearly 5.4% of Michigan Households are Unbanked.* The number of payday loan offices grew from 200 in 1990 to 22,800 in 2005 In the Lansing area, 20,000 checks a month are cashed at one Meijer store with a $4 check cashing fee. *According to Pew Charitable Trusts Proprietary Model. Contact Mia Mabanta at mmabanta@pewtrusts.org

The Bank On Opportunity Bank On helps mitigate the risks associated with the unbanked population. The campaign initially focuses on connecting the qualified segment of unbanked households to appropriate bank accounts Qualified means that households can financially benefit from using a bank account, have appropriate paperwork, and do not have a history of fraud or identity theft We expect that a majority of unbanked households are qualified

Why Most Unbanked Households are Qualified for a Starter Account: Most have an acceptable financial profile for most banks and credit unions.

Why Do Consumers Choose Higher-Cost Services Over a Checking Account? Most important reasons cited for not having a checking account: Do not write enough checks to make it worthwhile (28%) Do not like dealing with banks (23%) Do not think I have enough money (14%) Fees are too high (12%) All other reasons (23%) Data from Patty Avery, Bank On Evansville and the National League of Cities technical assistant

From the Perspective of the Unbanked in Michigan 70% were previously banked and are no longer banked. 70% closed their accounts because of high fees, relocation or NSF. 30% closed accounts because of overdrafts. What would make unbanked more likely to open a bank account? 29% Lower Fees. 20% More Convenient banking Hours. 16 % Less Confusing Fees. 14 % Lower Minimum Balance. 10% Quicker Access to Money. Data from Detroit Area Financial Services Study, Michael S. Barr University of Michigan Law School.

Creates positive image for the bank or credit union. Benefits the community. Stronger community = stronger bank. Competition with predatory check cashers, payday lenders and tax refund anticipation loans at non-predatory rates is attractive because a profitable market exists.

How Will Bank On Kalamazoo County Function? I. Design Appropriate Financial Products. II. Select 50 Participants (Pilot Group). Pilot group pulled from City of Kalamazoo and Comstock Township III. Training Program. IV. Program Evaluation V. Expand to Cover All of Kalamazoo County (in phases)

Current Partners Financial Institutions Banks Huntington National National City/PNC Credit Unions Consumers Kalsee Community Organizations Hispanic American Council Goodwill Industries Comstock Community Center

No monthly minimum balance requirement or service fees for checking and savings accounts Waiver of one set of NSF/OD per year Accounts for those on ChexSystems which is over 1 year old (as long as money is not owed to bank and no fraudulent activity has occurred) Accounts for those on ChexSystems less than 1 year old with a financial education class as a requirement Acceptance of alternate photo identification as primary identification (i.e. Mexican/Guatemalan Consular ID cards, State ID card, Passport, Military ID, Drivers License, etc )

Defining Success. Formerly Unbanked or Under-banked are successfully banked. Pilot group has entered mainstream financial world, not paying predatory fees for financial services and building positive credit history. Ability to expand initiative to all of Kalamazoo County.

Bank On Kalamazoo County Thanks Go To: Planning group participants John Schlinker, Ingham County Chief Deputy Treasurer Patty Avery, Bank On Evansville, Bank On Indianapolis, and the NLC technical advisory group Mia Mabanta, Pew Charitable Trusts