Post on 05-Jan-2016
transcript
What is EARN?
Helping low-wage families save to invest in homes, education, small business
Providing money management training and coaching to help families achieve their dreams.
Working to effect policies that increase asset-building opportunities for workers.
EARN breaks the cycle of poverty and creates new cycles of prosperity by helping low-wage families build assets. We accomplish this by:
Who EARN Serves How They’re Doing 2000+ Savers are Bay Area
residents who dream of achieving financial security using IDAs;
Average income is under $20k/year per household when they start
83% people of color, 65% women
25% Latino
64% are from households with children
17,000 newly banked San Franciscans through Bank on SF
300+ Alums with access to financial coaching and planning
EARN Savers put aside 5% of their gross income
EARN Savers have put aside over $2.2 million of their own hard earned dollars.
300+ Alums have invested over $2 million 67 Savers have
purchased homes! Nearly all EARN homeowners
have 30 year fixed rate mortgages
EARN disallows predatory mortgage products
EARN Alumni Association Additional Suite of Products and Services
Financial Coaching and Planning Pilot in San Francisco
Micro-lending for credit card and medical debt SAFE Accounts
3:1 match for education Very popular among Latino families
Networking + Additional Learning Governed by Alumni Leadership Council
Determine annual focus Produce annual event
Bank on San Francisco Learnings This is working!
Over 17,000 newly banked San Franciscans
Keys to Success Understanding Demand vs. Need Getting granular and focusing on branches in key parts of San Francisco
Aligns incentives for branch managers Circumvents community affairs staff
Remaining focused on a simple goal: get people banked
Linking to Financial Literacy has been very challenging Banks not built to deliver training Incentives and structure finally worked with CBOs
Lessons Learned - General
Meet Latino Families where they really are
Distinguish between need and demand Ex. Bank on SF focus group finding Ex. Need for incentives for training
Segment the market Ex. Don’t assume IDAs will work for all poor folks
Be thoughtful about how people actually obtain information to make key decisions Word of mouth Ethnic Media
Lessons Learned – SAFE Accounts
Important to Involve Entire Family in Orientation and Training
Children are often the lead translator for parents on educational, employment, legal, banking issues
Introduces children to importance of budgeting, saving, etc and creates dialogue between children and parents around saving and investing
Lessons Learned – IDAs/Homeownership
Identifying institutions that accept ITIN for mortgage loans developing good referral relationships with
loan officers is also important
Understanding how to improve, build or begin a good credit history.
Being clear about obstacles that Latino immigrants may face around homeownership (ITIN, stated income, credit history, HOA dues, etc.) Allows people time to identify resources to address issues.
Lessons Learned – IDAs/Homeownership – cont’d
Partnership with agencies like MEDA, Consumer Credit Counseling Services, and financial institutions is important.
Internal policies that protect low-income clients around
risky mortgages We believe this paternalism is justified
EARN’s Alumni Association is an important channel for staying in touch with Savers. Continuing education and networking provides
information on potential hazards around refinancing, changes in income of household, etc.