NATIONAL NEIGHBORS SILVER - NASUAD- National Association of States

AGE FRIENDLY BANKING: BUILDING PATHWAYS TO ECONOMIC SECURITY FOR OLDER ADULTS

THROUGH BANK ON AND OTHER COMMUNITY PROGRAMS

NATIONAL NEIGHBORS

SILVER

FLORIDA PROSPERITY

PARTNERSHIP

Presented By

5/30/2012 AIRS I&R TRAINING AND EDUCATION CONFERENCE 1

5/30/2012 AIRS I&R TRAINING AND EDUCATION CONFERENCE 2

AGE FRIENDLY BANKING: AGENDA

Facts About/Needs of Older Consumers

How Communities Can Help

Bank On Concepts

Other Community Programs

Case Studies

Developing an “Age Friendly Banking” Standard

Florida Prosperity Partnership

AGE FRIENDLY BANKING

BY KAYE SCHMITZ, PRESIDENT/CEO

THE FLORIDA PROSPERITY PARTNERSHIP

5/30/2012 3 AIRS I&R TRAINING AND EDUCATION CONFERENCE


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WHAT IS THE

FLORIDA PROSPERITY PARTNERSHIP?

THE FPP IS:

A statewide collaboration comprised of organizations from all sectors of the community that are focused on improving the financial stability for all Floridians by working together to leverage resources and improve economies of scale.

5/30/2012 AIRS I&R TRAINING AND EDUCATION CONFERENCE


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WHY WAS THE FPP FORMED?

5/30/2012

THE FPP WAS FORMED TO:

Work with and unify Prosperity Coalitions to offer a holistic approach to free financial and asset-building services

Assist all Floridians to have greater access to essential services

Increase the amount of disposable income and financial capability for Florida’s individuals and families

Advocate for policy change for vulnerable Floridians

Partner with FLAIRS (2-1-1s, etc.), state arm of AIRS

AIRS I&R TRAINING AND EDUCATION CONFERENCE


PURPOSE: To convene individuals and

organizations with the desire to leverage

their talent, resources, and passion to

improve the prosperity of Florida’s

families.

VISION: All Floridians have equal

opportunities to attain financial stability.

MISSION: Establish a statewide

collaboration holistically focused on

providing life-enhancing services to

Floridians.

MEMBERS: More than 140 from all

sectors of the community

5/30/2012 6

WHAT IS THE FPP’S PURPOSE?



HOW IS THE FPP FUNDED?

United Way of Tampa Bay


http://www.bankofamerica.com/

http://www.ndi-inc.org/index.html

http://tdbank.com/default.aspx


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WHAT ARE THE ISSUES IN FLORIDA?



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SENIOR FACTS IN FLORIDA

5/30/2012

Florida has been #1 in % of elderly to total population for 10 years

and is expected to remain #1 through 2025

Currently, of Florida’s 17.4 million people, 4 million of them are

seniors

That 4 million is expected to grow by 30% in the next few years

Majority live alone, far from their grown children

Aren’t always aware of the benefits available to them

Are vulnerable to frauds and scams



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They are vulnerable to targeted scams and fraud schemes for:

Mortgages:

Florida has been #1 in the country for mortgage foreclosures

with70-80% of them involving some type of fraud

Miami led the state in fraudulent loans and was 2nd on the

FBI’s list of mortgage fraud investigations

Such a problem that the Florid CFO launched a new website,

“On Guard “ for Seniors

WHAT ISSUES DO SENIORS FACE IN FLORIDA?



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WHAT ISSUES DO SENIORS FACE IN FLORIDA?

5/30/2012

Life Insurance and Annuity frauds

Reverse mortgages with unfriendly terms or strings attached

Consumer fraud through telemarketing and other

Identity theft

They are vulnerable to targeted scams and fraud schemes for:

Mortgages:

Florida has been #1 in the country for mortgage foreclosures

with70-80% of them involving some type of fraud

Miami led the state in fraudulent loans and was 2nd on the

FBI’s list of mortgage fraud investigations

Such a problem that the Florid CFO launched a new website,

“On Guard “ for Seniors



FINANCIAL STRESS: 1/3 have zero or negative assets

1/2 have less than $1,000 in net financial assets

20 % lack access to basic banking services

1/4 only have enough assets to survive for 3 months

POOR FINANCIAL PRACTICES: 58% pay bills on time (National Foundation for Credit Counseling)

70% building no savings (MetLife)

20% more than $10,000 balance on credit cards (Fidelity Invest.)

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BUT LIKE PEOPLE ALL OVER THE COUNTRY,

SENIORS HAVE…



BY WORKING WITH PARTNERS TO OFFER FINANCIAL

EDUCATION AND SERVICES THAT HELP SENIORS TO:

Understand services available to them

Reduce expenditures and budget

Access mainstream financial services

Avoid predatory and fraudulent lenders

Become more aware of scams

Become more financially capable

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HOW CAN THE FPP HELP?



THROUGH STATEWIDE INITIATIVES:

Train the Trainer Classes in FDIC’s MoneySmart

Partnership with University of Florida’s Master

Money Mentor Program

Bank On Florida

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HOW DO WE DO THAT?



MONEYSMART MODULES

Bank On It

Borrowing Basics

Check It Out

Money Matters

Pay Yourself First

Keep It Safe

To Your Credit

Charge It Right

Loan to Own

Your Own Home

Financial Recovery

AIRS I&R TRAINING AND EDUCATION CONFERENCE 5/30/2012


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MASTER MONEY MENTOR PROGRAM

Coordinated referral network of volunteer mentors who:

Provide one-on-one financial mentoring related to:

Budgeting

Savings Plans

Working with Financial Institutions

Understanding Credit and Debt

Family Communication about Money

Delivered by UF County Extension Services to:

Those who are unable to attend class

Those who need one-on-one assistance after class

Coordination assistance by the FPP



BANK ON FLORIDA

Social Marketing Program – low community implementation cost

Based on successful Bank on San Francisco pilot Almost 25,000 new checking or savings accounts in 2 years

80% retention rate

Majority of programs come with mandatory financial education

Teaches clients the benefits of mainstream banking

Comes to the aid of those whose organizations move to electronic deposit for checks (as Social Security is ready to do)

Builds client history



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BANKING IN FLORIDA





Understand the financial needs of the unbanked and

underbanked population in your community

Look beyond traditional check and savings accounts

Develop a continuum of financial services based on

need

HOW CAN YOUR COMMUNITY START BANK ON?



A Bank On campaign is driven by partnerships with: State wide asset building coalition

State and Municipal governments

Community-based organizations

Financial institutions and regulators

Regional and local Asset Building Coalitions

Innovative solutions are created to reach un- and under-banked individuals, including: Developing safe, affordable financial products;

Assisting targeted populations to utilize these products

Conducting outreach campaigns to inform the public

HOW CAN YOUR COMMUNITY START BANK ON?



BENEFITS OF SUCCESSFUL PROGRAMS

Seniors protect their income and assets and have more

wealth-building opportunities

Community groups have access to more asset-building

opportunities for their clients

Family financial stability = overall city economic vitality

Financial services can become part of larger community

asset-building strategies.

Financial institutions receive increased access to the

untapped market of the un- and under-banked



WHY FINANCIAL INSTITUTIONS GET INVOLVED

Improve the financial lives of customers

New and Sustainable Banking Relationships

Unbanked

No checking or savings accounts

Under-banked

Owners of depository accounts

Small Business

Employee benefits



WHY FINANCIAL INSTITUTIONS GET INVOLVED

Relationships with Government/Community

Reputational benefits and Brand recognition/builder

Social responsibility

Community relations benefits

Collaboration with nonprofit groups

Growing investors


NATIONAL NEIGHBORS SILVER

National Community Reinvestment Coalition works

to increase fair and equal access to credit, capital, and banking

services for underserved communities.

NCRC represents more than 600 community-based

organizations that promote access to basic banking services

including credit and savings, to create and sustain affordable

housing, job development and vibrant communities for

America’s families and elders.

National Neighbors Silver is a multi-year

campaign to empower, organize and support

economically vulnerable older adults. Combining

advocacy, organizing and direct service, the

campaign promotes access to responsible banking

services and affordable, fair housing for older adults.

Working with the banking industry, aging network

and housing experts, National Neighbors Silver

offers a platform for policy and program solutions to

build economic security and preserve wealth for

aging America.

NCRC: National Neighbors Silver

National Community Reinvestment Coalition –

bridging networks and building on expertise

A multi-pronged approach –

organizing, advocacy and direct service

Defining age-friendly banking –

identifying better banking practices for older adults


Organize and empower economically vulnerable seniors;

Bridge distinct networks in housing, banking and aging;

Train organizations on fair housing and fair lending for older adults;

Reach low-income seniors with housing counseling support; and

Promote responsible banking and adequate housing for seniors.

NCRC

Banking

Aging Housing


Organizing: Establishment of up to 15 local campaigns, including one

full-time organizer and 5 community Ambassadors. Collectively, these

community leaders will reach thousands of older adults.

Advocacy: Development of a national platform – including a federal

policy agenda and an “age-friendly banking” standard.

Direct Service: Direct services to older adults offered via the Housing

Counseling Network and trainings for service providers, housing

counselors, advocates and the broader NCRC network.


Velva Stewart – North Minneapolis, MN

“My home was always beautiful but the codes had changed. The city told me that

there were necessary repairs even though they knew there wasn’t a bank in the

community that would lend to me. I got an offer from someone who said they’d

buy my home and allow me to rent from them in exchange for equity. The house

was foreclosed from him, and I was evicted from my home of 35 years.”

Annette Smith – Rocklin, CA

“I was widowed at 34 and raised two daughters. I became homeless in the late

1990’s after the loss of my home and business to the criminal activity of our family

attorney. After moving into a HUD Section 8 senior apartment complex, I

discovered a maintenance man was charging older women for their repairs. Our

small board of six women ages 79-85 became empowered.”

ORGANIZING: National Neighbors Silver

10 organizing sites established in 9 states and communities:

Causa Justa: Just Cause (Oakland, CA)

Empowering and Strengthening Ohio’s People (Cleveland, OH)

Faith Action for Community Equity (Hawaii)

Jewish Community Action (Minneapolis, MN)

United Neighbors (Davenport, IA)

The California Coalition for Rural Housing (California)

New York Statewide Senior Action Council, Inc. (Buffalo, NY)

Pilsen Neighbors Community Council (Chicago, IL)

RISE Foundation (Memphis, TN)

Western Maine Community Action (East Wilton, ME)

National Neighbors Silver: Building a national movement to empower

older adults

DIRECT SERVICE: National Neighbors Silver

NCRC aims to actively reach seniors with housing counseling services.

From September 2010 – October 2011, the Housing Counseling Network

and its affiliates served over 1,750 seniors on foreclosure prevention.

NCRC will market its housing counseling hotline – 1-800-475-NCRC –

to older adults via its network and in partnership with aging service

providers.

In addition to housing counseling support, NCRC will develop trainings

and train-the-trainer curricula for its National Neighbors Silver grantees

and the broader NCRC network.

ADVOCACY: National Neighbors Silver

Through partnerships with banks, non-profits, government and

consumers, NCRC will define “age-friendly banking” – a standard

that includes a uniform package of services and products financial

institutions can offer to help seniors navigate today’s economy.

Affordable financial management

Community engagement

Protection from financial abuse

Loan products to facilitate “aging in place”

Affordable housing development for low-income seniors

Philanthropic support for aging services and advocacy

Accessible branch and online services

Creating New Tools for CRA Advocates

With your help, NCRC will define how banks can responsibly serve

economically vulnerable older adults. Together, we will identify the best

banking practices for older consumers. Based on your input, NCRC will

create a new tool called age-friendly banking.

CRA defines the kinds of activities

– like loans, financial literacy classes,

low-cost accounts, and more – that

count towards meeting a banks’

obligations to the community.

Case Study: Bank Y Notifies on Fraud

Bank Y – located in a major urban area in Northeastern U.S.

– is voluntarily participating in a local training program for

bank tellers co-led by Adult Protective Services (APS) and a

senior service organization.

The training program teaches bank tellers how to identify

common signs of financial fraud and abuse. After the

training, tellers are empowered to notify APS when an older

adult is at risk.

Case Study: Bank Y Notifies on Fraud

.

Discussion –

What do you think of Bank Y’s participation in the training?

What else could Bank Y do to protect seniors from abuse?

How common is elder financial abuse in your community?

Other thoughts or reactions?

Case Study: Z Bank Reaches Out

Z Bank – a regional bank located in the Southwestern U.S. –

made a sizable grant to a statewide non-profit to develop a

series of financial literacy materials for older adults.

In addition, Z Bank supports this non-profit in offering

financial counseling services to low-income older adults. Z

Bank refers its older consumers to this non-profit to receive

services and makes its financial literacy materials available

free of charge.

Case Study: Z Bank Reaches Out

.

Discussion –

What do you think of Z Bank’s support of the non-profit?

Are you familiar with similar services in your community?

What other services could Z Bank direct its consumers to?


NCRC: Age-Friendly Banking

Discussion –

How else can banks better serve older consumers?

What has been your banking experience as an advocate?

What banking stories do you hear from older adults?



Stay involved.

Contact our community-based partners and join up!

Participate in national webinars.

“Like” our movement online: @NCRC

Join our mailing list.

Contact Stacy Sanders at:

[email protected]

202-393-8305

mailto:[email protected]

Documents

NATIONAL NEIGHBORS SILVER - NASUAD- National Association of States