LSS Financial Counseling Service GET CHECKING TM Providing Access to Mainstream Financial Services...

LSS Financial Counseling Service

GET CHECKINGTM

Providing Access to Mainstream Financial Services

Eleanor LewisGet Checking Program Manager

LSS Financial Counseling Service

MN SavesMay 15, 2008

LSS Financial Counseling Service

Introduction

• According to the Federal Reserve Board, over 40 million consumers do not have a bank account.

• Lack of financial education is the primary factor so many consumers are ill-equipped to handle basic financial management tasks, making them less likely to succeed within the financial mainstream.

• Many communities recognize the value of financial literacy as a key component in community development initiatives.

LSS Financial Counseling Service

Target Audience

• Unbanked (i.e., never-banked)• Underbanked• Formerly banked

– ChexSystems

LSS Financial Counseling Service

Never Banked Formerly Banked

Underbanked

Inadequate income

Lack of financial education

Undocumented

Poor/no credit history

Distrust of banks

Inadequate income

Lack of financial education

Poor/no credit history

ChexSystems Listing

Distrust of banks

Inadequate income

Lack of financial education

ChexSystems Listing

Poor/no credit history

Get Checking: Target Customers

LSS Financial Counseling Service

ChexSystems

• Part of eFunds corporation• Debit bureau• Risk assessment tool• 9,000 financial institution customers• Approximately 8 million consumers listed

LSS Financial Counseling Service

Overview of Get CheckingTM

• Get Checking provides financial institutions and community organizations a master blue print for developing financially responsible consumers.

• Through deposit management education and practical application, consumers who were once locked out of mainstream banking will now have access to build assets.

LSS Financial Counseling Service

Overview of Get CheckingTM

• Get Checking is a four hour educational program that develops basic financial knowledge and practical skills to successfully manage and maintain a deposit account.

• The education efforts of Get Checking help consumers build a solid financial foundation and take the next steps towards building assets within the financial mainstream.

LSS Financial Counseling Service

History of Get CheckingTM

• Inspired by a Milwaukee banker who wanted to address the need for mainstream banking opportunities in that market.

• Designed in 1998 by University of Wisconsin Extension and a coalition of community organizations, financial institutions and social service agencies in Milwaukee, WI.

• eFunds supported the development of the Get Checking curriculum and joined as a national partner in 2001.

LSS Financial Counseling Service

Get CheckingTM Program Eco-System

CONSUMER

EFUNDS CORP -CHEXSYSTEMS

FINANCIAL INSTITUTION

EDUCATIONALPARTNER

normal opening procedures followed

and due diligence performed

educational partner conducts classes and sends graduates back to referring financial

institution

consumers declined a deposit account are provided a brochure

for Get Checking classes

consumer comes into financial institution and inquires about opening an account

LSS Financial Counseling Service

Program Objectives

• Short term• Increase in awareness about:

– Spending plans– How to work with financial

institutions • Intention to:

– Create a spending plan– Open a checking account– Check their credit score

• Long term– Create and use spending

plan– Open the account– Keep the account in good

standing

LSS Financial Counseling Service

Get CheckingTM Curriculum

• Chapter 1: Introducing the Get Checking Program

• Chapter 2: Choosing an Account that is Right for You

• Chapter 3: Managing Your Checking Account• Chapter 4: Keys to Successful Money

Management and Credit

LSS Financial Counseling Service

FI Partner Requirements

• One time monetary contribution• Refer consumers to Get Checking• Agree to open an account for anyone with a

certificate of completion• Attend one class per year• Provide product brochures• Track account openings and closings

LSS Financial Counseling Service

Program Success

• Nationally, 95% of graduates maintain accounts in good standing one year later

• Nationally, almost 18,000 graduates• In Minnesota, 130 graduates

LSS Financial Counseling Service

History of Get CheckingTM in Minnesota

• Provided exclusively by LSS Financial Counseling Service

• Two and a half years• Twin Cities Metro, Duluth/Superior, St. Cloud,

Rochester, Fargo/Moorhead• 15 financial institution partners in Twin Cities

LSS Financial Counseling Service

MN FI Partners

• Anchor Bank• Associated Bank• City & County Credit Union• City-County Federal Credit Union• Endura Financial Federal Credit Union• Guaranty Bank• Hiway Federal Credit Union• M & I Marshall & Ilsley Bank• MidCountry Bank• South Metro Federal Credit Union • Star Choice Credit Union• Teacher Federal Credit Union• TopLine Federal Credit Union• US Bank• US Federal Credit Union

LSS Financial Counseling Service

Program Challenges

• Class requirements• Class schedule• Population size• Changing market/Divergent directions of

financial institutions

LSS Financial Counseling Service

Response to Challenges

• Creative Referral Programs• Streamlined Classes• New Target Population

LSS Financial Counseling Service

Future of Get CheckingTM in MN

• Focus on Twin Cities metro area