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Supportive BankingThe Access Project:

A New Concept To Support RecoveryA Next Step to Financial Health and Wellness

Presentation to NJPRAOctober 27, 2011

byPeter Stahl, CSPNJ, Director

Tom Pyle, PsychOdyssey Services, Inc., Board Member

(in formation)

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Outline

• Financial Wellness: Road to Recovery Nirvana • Financial Reality: Poverty as Barrier to Recovery• Making Progress: CSP’s Financial Services Experience• Next Steps: A New Psych Rehab Concept?

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Psych Rehab: A Continuing Evolution…Medical Model Recovery Model

Centralized DecentralizedHospital Agency

Institution Community

Paternalism Autonomy

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Research: Wealth Wellbeing

• Health, mental health, personal finance are interconnected (O’Neill, Sorhaindo, et al., 2005)

• Impulse and compulsive buying linked to negative psychology (Silvera, Lavack & Kroop, 2008; Baumeister, 2002; Verplanken, et al., 2005)

• Overspending and rising debt increase stress, reduces health (Drentea & Lavraka, 2000; Kim, Garman & Sorhaindo, 2003)

• Debt reduction and credit repair improve physical health (Bagwell, 2000; O’Neill, et al., 2005)

• Asset accumulation brings psychological and social benefit (Dynner & Paxton, 2001)

• Asset ownership boosts confidence and expectations (hope) (Yadama and Sherraden, 1996)

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SAMHSA’s 8 Dimensions of Wellness

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What Road to Recovery Nirvana?

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What Road to Recovery Nirvana?

Community Integration

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Integration? Those with SMI…

• 32% live below poverty line (Erickson and Lee, 2008)

• 72% are unemployed (Erickson and Lee, 2008)

• 46% of the homeless• 9% have college degrees (Erickson and Lee, 2008)

• Earn $27,500 AHI (vs. $50,007) (ACS, 2007; NIMH, 2008)

• Pay > 50% of AHI for housing (Sperling, et al., 2005)

• Largest group on SSI/SSD

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The Continuing Crisis…

Those with SMI are often…

• Ultra-poor• Homeless• In jail• In debt• Without credit• Unemployed• Unbanked

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Poverty Blocks Road To Recovery

• No economic safety net• No financial services• Insufficient housing• Inadequate insurance• No financial literacy

• Benefits endangered by… working!

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Barriers to Financial Recovery

• Misinformation– Work leads to loss of benefits…– Asset limits don’t allow me…– I can’t afford to save…

• Fear– The economy is bad…– I can’t afford a home/car…– Emotional issues about money…

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Removing The Barriers…

• Financial literacy training• Matched savings incentives• Setting savings goals• Personal finance advising

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Financial Education: CSPNJ At Work

• Financial stability: Gaining personal control over income and expense

• Financial security: Setting goals for saving

• Financial empowerment: Using products and services effectively

• Financial independence: Providing money management and savings products, i.e. IDAs

• Financial success: Credit repair; debt reduction; asset accumulation through savings

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FinEd Lessons Learned

• Gear towards the individual• Teach… – Budgeting– Money management– Debt reduction– Credit repair– Long term goal planning

• Support until self-efficacy attained• Also address emotional stresses about finance

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FinEd Lessons Learned, ctd.

• Include FinEd in all wellness curricula• Teach stewardship for money• Address all aspects of finance• Encourage savings in every budget• Start with small savings accounts• Engage an IDA program• Focus on assets and QOL, not debt repayment• Use microloans instead of benevolence

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And Then We Got To Thinking…

How to support financial independence,

that final barrier to…

Community Integration?

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Psych Rehab Practices...

• Supportive Housing…• Supportive Education…• Supportive Employment…

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A New Psych Rehab Practice?...

• Supportive Housing…• Supportive Education…• Supportive Employment…

• Supportive Banking

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The first federally chartered Credit Union of, by, and for individuals with psychiatric disabilities (and their families, friends, providers, and supporters).

A Membership Association of individuals with psychiatric disabilities and their supporters to promote financial literacy and build the Credit Union.

Our Supportive Banking Concept…

(in formation)

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Our Supportive Banking Concept…

www.supportivebanking.com

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Possible Features: Some Product Ideas…

Literacy Association• Courses• Seminars• Workshops• Individual training• Personal advisory• Credit repair• Consulting

Credit Union• Savings Accounts• IDAs• Tax Prep and EITC’s• Microloans• Other loans• Low or no fee

transactional services

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Challenges• Current economic recession• Low interest rate environment• “Leveraging” participation• Deposit and loan growth• Operating capital

• (Not NCUA approval…)

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Opportunities• Real business• Of, by, and for consumers• Means for meaningful support• Accountability and responsibility • Employment• Skills development

• Financial independence

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Status• Board formed• Company (501c3) established• Research underway– Industry– Markets– Competition– Products and services– Funding

• Business plan being drafted• Application to NCUA being prepared

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Next Step: Pledges!

To Get Approval, Access Needs…

1. Members ( ~ 1000, to pledge deposits)2. Deposit pledges ( ~ $100,000)3. Consumer leaders ( ~ 100)

Note: Pledges, not yet moneyNote: All deposits Federally insured

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The 100 | 1000 | 100,000 Plan

• 100 Leading Consumers (“The Centurions”)

• 1000 Individual Members (including corporations)

• $100,000 Total Deposits Pledged

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The 100 | 1000 | 100,000 PlanAccess Financial

100/1000/100,000 Charter Campaign Membership and Deposit Pledges Mobilization Calculations

Depositor Average Deposit

No. of Depositors % Total %

Cumulative Total

Corporation 1 $25,000 1 0.1% $25,000 14.3% $25,000 Corporation 2 $10,000 2 0.2% $20,000 11.4% $45,000 Agencies $5,000 10 0.8% $50,000 28.6% $95,000 “Executive” Members $1,000 20 1.7% $20,000 11.4% $115,000 “Family” Members $500 50 4.2% $25,000 14.3% $140,000 "Founder" Centurions $100 100 8.5% $10,000 5.7% $150,000 "Senior" Members $25 1,000 84.5% $25,000 14.3% $175,000 TOTAL 1183 100.0% $175,000 100.0%

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How You Can Help

• Join Access Financial Literacy Association ($1.00)• Sign a deposit pledge card ($5 minimum)• Fill out our questionnaire• Tell your clients• Recruit your family• Involve your agencies• Network us to others• Share your ideas

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Join Our Project!For further information…

Visit CSPNJ’s tablefor brochures and ways to support

Contact:

Peter Stahl, Director, Access Projectt. 732-780-1175 x 27 | e. pstahl@cspnj.org

29(in formation)