Integration and Partnership Strategies Nicole Smith, Director of Strategic Partnerships 2013 NYS CDFI Coalition Conference Albany, NY October 1, 2013

Integration and Partnership StrategiesNicole Smith, Director of Strategic Partnerships

2013 NYS CDFI Coalition ConferenceAlbany, NY

October 1, 2013

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A Nonprofit Financial Services Provider

We Are: A financial advisory serviceA laboratory for innovationA strategic partner

Mission: Empower low-income individuals to become productive participants in the U.S. financial system and achieve their financial goals.

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Our Service Model

Team of Financial Advisors Highly trained staff deliver one-on-one and group workshop advisory

services

Financial Advisors guide clients to develop a Financial Action Plan to

work towards clear financial goals

Socially Responsible Financial Products The coupling of financial advisory services with quality financial products provides clients with

the education and tools to achieve their financial goals and increases the likelihood of effecting

behavioral change

Partnerships Our fundamental belief is that financial empowerment is most successful when integrated into

the poverty-fighting initiatives of trusted community organizations Our services are embedded in host nonprofits, credit unions, government agencies, and

businesses

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Who are our Partners?

NonprofitsGovernment

AgenciesFinancial

InstitutionsBusinesses /

Employers

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Credit Union Extension Program (CUEP)

Integrating financial counseling into the operations of community development credit unions

Currently at NTFCU, Brooklyn Coop FCU, and LESPFCU

Each CDCU has access to a financial advisoro Delivers one-on-one financial counseling to credit union memberso Facilitates NTFP’s signature 10-hour Getting Ahead financial education course to credit union

members, as well as community members in the credit union’s field of membershipo Trains CDCU staff to create a “culture of financial capability” in the CDCUo Works with Lending and Member Services Departments to receive referrals

Benefits:o Client: empowered with financial action plan and productive financial products to achieve

financial goalso CDCUs: reach full potential as vehicles for economic development; more financially healthy

members who are better able to use credit union services; improved credit profile of members/borrowers; ideas for innovative financial products; attract new members to the credit union

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CUEP Client Data

Clients Served 1,050

Ethnicity

Hispanic 50%

African American 32%

Education Level

Some College 26%

High school diploma / GED 21%

Some high school or less 16%

Annual incomeLess than $25,000 58%

Less than $40,000 80%

CUE Client Profile (2012)

Average credit score increase 21 points

% of CUE clients achieved increased credit score 64%

% CUE clients achieved increased credit score by 35 points or more 42%

% CUE clients who reduced debt 52%

Average debt reduction $8,000

Median debt reduction $3,061

CUE Program Outcomes

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There is a need for this program!o There is a growing number of working poor Americans across the countryo Nearly 45% of all Americans have almost no savings and subsist paycheck to

paycheck with little or no financial cushiono 23% of low-income households have bank accounts but still rely heavily on fringe

financial services such as check-cashing outlets, money orders, and payday loans

Our Financial Advisors focus on effecting positive behavioral changes in clients

NTFP is skilled in integrating our services in host organizations Consistent tracking of outcomes allows NTFP to adapt the program

and improve service delivery The program brings together mission + data to achieve financial

sustainability

Transferability to other financial institutions

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Partnership Inquiries

Nicole Smith

Director of Strategic Partnerships

Email: [email protected]

Call: 212-927-5771 ext. 218

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Q&A