THE CREDIT UNION EXTENSION PROGRAM Financial Counseling Integrated Into CDCUs JUSTINE ZINKIN, CEO MAY 14, 2014
A Nonprofit Financial Services Provider Mission: Empower low-income individuals to become productive participants in the U.S. financial system and achieve their financial goals.
Success Framework
Our Service Model Team of Financial Advisors Highly trained staff deliver one-on-one and group workshop advisory services Financial Advisors guide clients to develop a Financial Action Plan to work towards clear financial goals The Gateway Banking Package The coupling of financial advisory services with quality financial products provides clients with the education and tools to achieve their financial goals and increases the likelihood of effecting behavioral change Partnerships Financial empowerment is most successful when integrated into the poverty-fighting initiatives of trusted community organizations Our services are embedded in host credit unions, nonprofits, government agencies, and businesses
Who Are Our Partners? Nonprofits Government Agencies Financial Institutions Businesses / Employers
A financial counselor is a part of the credit union team and operations Engages members and the community Delivers financial counseling as core offering, embedded into product offerings, as part of application and / or underwriting process Success measured via improvements to members balance sheets and credit profiles Success measured by improvements in members usage of credit union services resulting and bottom line results Benefits Credit Union Extension Program Clients: empowered with financial action plan and productive financial products to achieve financial goals CDCUs: reach full potential as vehicles for economic development via more financially healthy members who are better able to use credit union services
An CU Example: Neighborhood Trust FCU Call To Action Join Us. We guarantee members affordable, fair financial services. Savings. Credit. Money Management. Build your Financial Future. We offer members a personal Financial Advisor who builds Financial Action Plans. Bank Wisely. We connect members to today s banking technologies, using online and phone banking for smarter money management. Invest In your Community. As a nonprofit cooperative we make sure your deposits stay in our neighborhood and strengthen our neighborhood economy. Our mission is wealth-building for you. And your community.
A Product Example: The TRUST CARD The Trust Card Is Easy Transfer all of your debt to one card. Make the same payments each month and watch your balance go down more quickly. The Trust Card Saves You Money The Trust Card has a lower interest rate. Unlike other cards, as you pay off your debt, the minimum payment stays constant. You will be out of debt faster and spend much less on interest. The Trust Card Gives You Control Don t fall back into bad habits. As you pay off your debt your access to new credit is limited and you can choose a lower limit upfront. The Trust Card strikes a balance between reducing your debt and the need for available credit. From Pilot Launch: 40 cards originated Median balance refinanced: $7,122 Median debt reduction: $1,000 Median life of active cards: 182 days Income expected per card: $1,500
CUEP Client Data
The National Federation / Neighborhood Trust Expansion Pilot A sustainable model for the integration of financial counseling into the community development credit union (CDCU) field. Work Plan: A 2-year pilot that strengthens existing counseling programs within credit unions and expands the provision of high-quality financial counseling throughout the credit union industry. Goals: Develop a robust and sustainable model for the integration of financial counseling into credit unions operations: Combine counseling with high-impact financial products and services to achieve greater outcomes for clients: Systematically track and demonstrate the impact of counseling on the member and the credit union through a uniform data collection platform: Vision: By embracing and promoting a culture of financial capability, CDCUs can reach their full potential as vehicles for financial empowerment and economic development.
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