the shift to financial capability: spurring innovation and behavior change
DESCRIPTION
The Shift to Financial Capability: Spurring Innovation and Behavior Change. FDIC Advisory Committee on Economic Inclusion June 2, 2011. What we know. What we do. What we know. What we do. What we know. What we do. What we’ve been doing:. Credit Counseling Financial Coaching. - PowerPoint PPT PresentationTRANSCRIPT
©CFSI, 2011. Not for distribution©CFSI, 2011. Not for distribution
The Shift to Financial Capability: Spurring Innovation and Behavior Change
FDIC Advisory Committee on Economic InclusionJune 2, 2011
©CFSI, 2011. Not for distribution
What we knowWhat we know
©CFSI, 2011. Not for distribution
What we doWhat we do
©CFSI, 2011. Not for distribution
What we knowWhat we know
©CFSI, 2011. Not for distribution
What we doWhat we do
©CFSI, 2011. Not for distribution
What we knowWhat we know
©CFSI, 2011. Not for distribution
What we doWhat we do
©CFSI, 2011. Not for distribution
Access: Financial Products, Services, Experiences
Text/EmailIn-Line
Messaging
Educational Gaming
Personal Financial Management Tools
Social Media
• Seminars
• Classroom Education
• Online Curricula
What we’ve been doing:
• Credit Counseling
• Financial Coaching
From Financial Education to From Financial Education to Financial CapabilityFinancial Capability
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Real-Time Education: The AspirationReal-Time Education: The Aspiration
ACCESS + INFORMATION
CROSS-SECTOR PARTNERSHIPS
BEHAVIORAL ECONOMICS
LEVERAGING TECHNOLOGY
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ACTIONABILITY
Access + EducationAccess + Education
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13% involved new/existing online financial education curriculum 8% involved text alerts, 4% email alerts 13% involved social media, mostly Facebook 5% proposed building new online platforms to provide education and products while 5% utilized existing personal financial management platforms
Promising projects leveraged technology to improve the customer experience or to enhance the provider’s
efficiency.
Leveraging TechnologyLeveraging Technology
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Applying Behavioral EconomicsApplying Behavioral Economics
9% of proposals mentioned behavioral economics
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EDUCATION + ACCESS TO PRODUCTSfor most nonprofits, that means
strategic partnerships
Financial Service Provider Partners
Banks 56%
Credit Unions 28%
Other (credit bureaus, prepaid card companies, remittance companies, etc.) 41%
Note: Many organizations had multiple financial service providers as partners.
96% of proposals involved partnerships
85% - nonprofits partnering with for-
profits, mainly financial institutions
PartnershipsPartnerships
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RecommendationsRecommendations
1. Innovate: Use competitions to seed innovative approaches to financial capability that marry access and information. Evaluate new approaches to determine what works. 2.Scale: Provide tools and funding to replicate the approaches that work best.3.Leverage: Build from existing government-driven touch points, such as tax time and benefits payments.4.Lead: Use the bully pulpit of government to motivate fresh thinking and action.
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The Center for Financial Services Innovation2230 S. Michigan Ave., Suite 200Chicago, IL 60616www.cfsinnovation.com
Jennifer Tescher, President & [email protected]