partnerships for financial inclusion in latin america and the caribbean: a catalyst for inclusive...

Partnerships for Financial Inclusion in Latin America and the Caribbean: A Catalyst for Inclusive Growth

Overview of the NYC Office of Financial Empowerment (OFE)

Tamara LindsayDirector of ProgramsNYC Office of Financial Empowerment

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Mission of DCATo ensure that consumers and businesses benefit from a fair and vibrant marketplace.

Strategic Priorities• Empowering and protecting consumers.

• Facilitating fair business practices.

• Conducting efficient, accountable, and customer-friendly operations.

Overview of OFE The Office of Financial Empowerment (OFE) is the first local government initiative in the nation with a mission to educate, empower, and protect New Yorkers with low incomes so they can build assets and make the most of their financial resources.

• Slow economic recovery for low- and moderate-income New Yorkers

• Poverty rates continue to climb slowly

• Persistent disparities in income

• Many lack savings to manage any short-term needs

• Prevalence of predatory tricks and traps

New York City Financial Landscape: Realities

• Local government

• Many stakeholders motivated to help

• Focus on financial inclusion

New York City Financial Landscape: Opportunities

Promising OFE Financial Empowerment Strategies

Integrating Financial Counseling and Education• Build local capacity to deliver standardized, high-quality services• Structure integrations through city systems, funding streams, and contracts • Financial Empowerment Centers Professional Counselor Training Capacity Building Initiative

Improving Access to Financial Services• Employer-based banking• Safe banking for vulnerable and underserved populations• NYC Direct Deposit Opportunity NYC Account NYCSafeStart

Boosting Income and Building Assets• Safe and affordable tax preparation services• Tax-time savings programs• Tax Credit Coalition (VITA, Online, Coupon, Virtual) SaveUSA Financial Security Credit

Protecting Consumers in the Financial Services Marketplace• Leveraging local enforcement authority• Impact consumer financial protection policies• Debt Collection Payday Lending

Financial Empowerment

Financial Counseling

and Education

Safe and Affordable Banking

Income and Asset

Building

Consumer Financial

Protection

Research & Evaluation

The Local Government Opportunity

Integration• Numerous service

delivery options• Use City’s payment

streams

Scale• Large numbers to

serve• Significant impact

Sustainability• Central coordination• Disseminate best

practices• Influence policy• Sustain efforts

Quality• Require a standard

approach• Data collection and

analysis

Programs

Research & Evaluation

Policy

Scale & Replication

Effecting Change

•Need for short-term savings with meaningful incentives to save

•Tax-time matched savings program

•Save a $200+ for a year, match up to $500

Program

•Understand demand and impact

•4,700 accounts, 75% saved for the full year

•$4 million in savings

•Program increased savings rates and amount

Research & Evaluation

•Enact change in the tax code

•Evidence to support policy efforts

•Replication in other cities

Policy, Scale & Replication

Spotlight: Tax-Time Matched Savings

•Prioritize direct deposit as a critical step

•Work with NYC’s more than 250,000 employees through payroll

•Partnership between City agencies

•Negotiate bank account terms

Program

•Opportunity to use City’s payment stream

•7,500 City employees opened accounts

•Introducing direct deposit through other City workforce programs

Policy, Scale & Replication

Spotlight: Employer-Based Banking

The OFE Timeline

Phase 3: Policy and Technical Assistance

Experience/Lessons Scale

Phase 2: Programs

Pilots Research & EvaluationPhase 1: Launch

Understand Needs Promote the Financial Empowerment Concept

Tamara Lindsaytlindsay@dca.nyc.gov42 Broadway, New York, NY 10004www.nyc.gov/ofe