increasing access to the financial mainstream
DESCRIPTION
San Francisco Treasurer José Cisneros and José Quinonez, Executive Director of the Mission Asset Fund, discuss innovative strategies to provide financial services to underserved communities and the impact these programs have on local and national policy. Under the leadership of Treasurer José Cisneros, San Francisco has emerged as a leader in the financial empowerment field through groundbreaking initiatives such as Bank on San Francisco and Payday Plus SF, which work with financial institutions to create better products and services for those excluded from the financial mainstream. At the same time, the Mission Asset Fund is taking informal practices such as the peer lending circles popular in immigrant communities, and creating financial products that help build credit and formalize participation in the mainstream economy. Both approaches are now seen as national models for reducing financial exclusion. In this session, panelists discuss effective strategies for increasing access to the financial mainstream and the implications these approaches have for local and national policy.TRANSCRIPT
Cestas Populares – Peer Lending Circles
About MAF
The Mission Asset Fund is the first neighborhood-based, community-led, asset-building organization in the country, that was established when Levi Strauss & Co. sold their factory on Valencia St. and made a commitment to invest $1 million in the Mission district for community development project.
Our mission is to expand access to financial services, savings and investment opportunities for residents of the Mission District to build a more secure economic future for themselves, their families and their community
The Mission District
The Mission is a vibrant working-class community with a long history as a gateway for new immigrants; rich in social networks, active civic engagement, and strong nonprofit leadership.
The 1.5 square mile neighborhood is densely populated with over 70,000 residents, including 50 percent Latino and 11 percent Asian/Pacific Islander households.
Nearly one-half of Mission residents are Spanish speakers and more than one-in-three speak only Spanish.
Forty-four percent of Mission households have no credit history
Dynamic Intersection
Micro Finance Bridge financial products Peer loans
Community Development Neighborhood focused Membership based
Asset Building Match savings accounts Financial capability
Immigrant Rights Financial integration Culturally relevant
Creative Strategies
Leveraging cultural assets to help low-income immigrant communities build wealth
Using technology to deliver cost-effective programs and services
Developing program models that can be easily replicated in other communities
Life Cycle of Cesta Loans
Summary Stats
186 participants
218 loans
$1,444 per loan
$314,900 total loan volume
73% are women
25% save
14% pay high cost debt
27 members had no credit scores
Outcomes
Zero default rate
Average credit scores increase by 49 points
Decrease debt by $1,209
Increase of 4 trade lines
Personal Impact: Jessica Ortega
ASSETSASSETS
CREDITCREDIT
Building on Success
Key Questions:
Can credit reports provide good and objective metrics for evaluating financial progress?
If peer lending circles are successful in the Mission, can they work in other communities?
How can Cestas reach scale?
Jose Quinonez, Executive Director
Mission Asset Fund | Fondo Popular de la Misión
2301 Mission St., Suite 303
San Francisco, CA 94110
www.missionassetfund.org
twitter.com/MAFpajarito
Contact Information