national neighbors silver - nasuad- national association of states
TRANSCRIPT
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
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Florida Prosperity Partnership
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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
Florida Prosperity Partnership
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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
Florida Prosperity Partnership
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
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WHAT IS THE FPP’S PURPOSE?
AIRS I&R TRAINING AND EDUCATION CONFERENCE
Florida Prosperity Partnership
HOW IS THE FPP FUNDED?
United Way of Tampa Bay
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Florida Prosperity Partnership
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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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Florida Prosperity Partnership
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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?
AIRS I&R TRAINING AND EDUCATION CONFERENCE
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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
AIRS I&R TRAINING AND EDUCATION CONFERENCE
Florida Prosperity Partnership
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…
5/30/2012 AIRS I&R TRAINING AND EDUCATION CONFERENCE
Florida Prosperity Partnership
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?
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Florida Prosperity Partnership
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?
5/30/2012 AIRS I&R TRAINING AND EDUCATION CONFERENCE
Florida Prosperity Partnership
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
5/30/2012 AIRS I&R TRAINING AND EDUCATION CONFERENCE
Florida Prosperity Partnership
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
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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?
AIRS I&R TRAINING AND EDUCATION CONFERENCE 5/30/2012
Florida Prosperity Partnership
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?
AIRS I&R TRAINING AND EDUCATION CONFERENCE 5/30/2012
Florida Prosperity Partnership
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
AIRS I&R TRAINING AND EDUCATION CONFERENCE 5/30/2012
Florida Prosperity Partnership
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
AIRS I&R TRAINING AND EDUCATION CONFERENCE 5/30/2012
Florida Prosperity Partnership
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
AIRS I&R TRAINING AND EDUCATION CONFERENCE 5/30/2012
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
NCRC: National Neighbors Silver
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
NCRC: National Neighbors Silver
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.
NCRC: National Neighbors Silver
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?
Other thoughts or reactions?
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?
Other thoughts or reactions?
NCRC: National Neighbors Silver
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:
202-393-8305