october 3, 2011 leveraging cultural assets to increase financial capability society for financial...
TRANSCRIPT
October 3, 2011
LEVERAGING CULTURAL ASSETS TO INCREASE FINANCIAL CAPABILITY
SOCIETY FOR FINANCIAL EDUCATION AND PROFESSIONAL DEVELOPMENT CONFERENCE
About MAF2
The Mission Asset Fund is an innovative, award winning nonprofit organization, working to expand access to financial services for low-income immigrant families.
MAF was established in 2007 with a generous grant from the Levi Strauss Foundation
© MAF 2011
Organizational Values3
Recognize the human potential in everyone Empathize with people in their daily struggles Meet people where they are at, not where we
want them to be, nor where we think they should be Build on what they have no matter how small,
what shape, or form
And… We bring all that we have to bear – our knowledge,
insights, and passion – to help those left in the shadows and outside of mainstream society
© MAF 2011
Innovative Programs
Lending Circles
Individual Developm
ent Accounts
Resources Match
Mission Action
4
© MAF 2011
Lending Circles are a Global Practice
Egypt • jam’iyya Ghana • susuKenya • mabatiSouth Africa
• chitaUganda • chilemba
China • lun-huiIndia • kameti
Japan • koPhilippines • paluwaganSingapore • kutu
Jamaica • susuMexico • tanda
Peru • pandero
5
© MAF 2011
Program Outputs – Participants
6
2008 2009 2010 2011
13
80
169
130
© MAF 2011
Program Outputs – Loan Volume
7
2008 2009 2010 2011
$15,200
$104,400
$330,850
$210,000
© MAF 2011
Program Outcomes – Credit Scores 8
46 lending groups – 23 currently
active
49 average credit score increase
4 average trade lines increase
$1,200 debt decrease
0 default rate – still! © MAF 2011
Program Impact – Jessica’s Story
9
Nov 08:• No assets; NO CREDIT SCORE; No
checking account
Jan 09:• Opens IDA; Enrolls in Financial
Education Mar 09: • Joins 1st Cesta, $800
Jul 09:• Applies for a secure credit card from
MCUSept 09: • 623 CREDIT SCORE
Oct 09: • Joins 2nd Cesta $2,000
Dec 09: • $6,000 in IDA savings
Jan 10:• Gets $2,500 loan from MCU to buy
$8,500 carJul 10: • Joins 3rd Cesta $3,000
Nov 10: • 703 CREDIT SCORE
© MAF 2011
Lending Circles Partners10
CEO Women, Oakland
LGBT Center, San Francisco
Family Resource Center, Fremont
Community Housing Development Corporation, Richmond
Center for Employment Training, San Jose
International Institute of the Bay Area, San Mateo
Chinese Newcomers Service Center, San Francisco
APA Family Support Services , San Francisco
© MAF 2011
Replication is under way11
© MAF 2011
Evaluation 12
With support from the Ford Foundation, we contracted San Francisco State University to conduct a two year evaluation of Lending Circles – Determine the impact of the program to
participants’ credit score through a quasi-experimental design study
Determine the impact of financial education to participants through a randomize control study
Report is scheduled for release in 2013© MAF 2011
Take Away Message13
MAF’s Cestas Populares embody true partnership with immigrant families – based on recognition of who they are, and respect of what they do
Financial education is most effective at changing consumer behavior when coupled with responsible financial product – people learn how to drive then they are actually behind the steering wheel of a car
Contact Information
José Quiñonez, Executive Director
Mission Asset Fund | Fondo Popular de la Misión
2301 Mission St., Suite 303
San Francisco, CA 94110
www.missionassetfund.org
twitter.com/MAFpajarito
facebook.com/missionassetfund.org
© MAF 2011