©cfsi, 2011. not for distribution the shift to financial capability: spurring innovation and...

©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


What we doWhat we do


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


Real-Time Education: The AspirationReal-Time Education: The Aspiration

ACCESS + INFORMATION

CROSS-SECTOR PARTNERSHIPS

BEHAVIORAL ECONOMICS

LEVERAGING TECHNOLOGY


ACTIONABILITY

Access + EducationAccess + Education


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


Applying Behavioral EconomicsApplying Behavioral Economics

9% of proposals mentioned behavioral economics


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


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.


The Center for Financial Services Innovation2230 S. Michigan Ave., Suite 200Chicago, IL 60616www.cfsinnovation.com

Jennifer Tescher, President & [email protected]

©cfsi, 2011. not for distribution the shift to financial capability: spurring innovation and...

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