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From Unbanked to Assets: Meeting the Financial Needs of Low-income Minnesotans

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From Unbanked to Assets:

Meeting the Financial Needs of

Low-income Minnesotans

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Financial Needs of Low-income Minnesotans

Prepared by

Acknowledgements

This report was prepared by Improve Group on behalf of and in consultation with AccountAbility Minnesota. The findings presented in this report are based on a comprehensive review process made possible through the help and assistance of the following:

 Jodi Sandfort, Board President & Associate Professor and Chair, Humphrey School of Public Affairs

 Leo T. Gabriel, Professor of Business, Bethel University

 Beth Haney, Independent Consultant and Past Board Chair, AccountAbility Minnesota  Eva Song Margolis, Director, Eastside Financial Center at Lutheran Social Service of

Minnesota and former Financial Services Manager at AccountAbility Minnesota  Tracy Fischman, Executive Director, AccountAbility Minnesota

 Stacy Opitz, Communications and Marketing Director, AccountAbility Minnesota  Anne Johnson, Financial Services Manager, AccountAbility Minnesota

 Bill Raker, President/CEO of the US Federal Credit Union and his executive team for their long-time partnership and their efforts in collecting, compiling and reporting the extensive data provided in this report.

ABOUT ACCOUNTABILITY MINNESOTA

AccountAbility Minnesota is the only nonprofit organization in Minnesota solely dedicated to providing free tax preparation and financial services to low- to moderate-income working

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families. AccountAbility Minnesota was established in 1971 by a group of social-justice minded accountants committed to ensuring that one's ability to receive tax assistance should not depend solely on one's ability to pay for these services. Over the years, AccountAbility Minnesota has expanded its work by integrating access to affordable financial services into its tax preparation process and helping to build the capacity of other organizations to offer similar services in their communities. By leveraging the efforts of hundreds of volunteers, AccountAbility Minnesota serves thousands of working families each year to help them access their entire tax refund and put those resources to use to build wealth. In 2010, nearly 400 volunteers helped more than 11,000 taxpayers receive $21 million in refunds.

ABOUT THE IMPROVE GROUP

The Improve Group is an independent evaluation and planning firm with the mission to help people and programs reach their full potential. The research design, data collection, analysis and reporting expertise of the Improve Group particularly emphasizes building the capacity of local organizations to make information meaningful and useful.

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Contents

Overview & Purpose

... 2

Executive Summary

... 5

Introduction and Methods

... 11

Project Objectives

... 11

Methods of Analysis

... 11

Limitations of the Evaluation

... 13

Context

... 15

Findings

... 16

Needs, Practices and Experiences of Customers ... 16

Strengths and Gaps in the Current Financial Services System ... 30

Improving the Financial Well-Being of Low- to Moderate-Income Minnesotans ... 42

Areas for Exploration and Consideration

... 50

Appendix:

Key Terms

... 52

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Overview & Purpose

AccountAbility Minnesota background

AccountAbility Minnesota, a nonprofit community-based organization, is entering its 40th year of providing free tax and financial services to low- and moderate-income taxpayers. The organization was founded in 1971 by a group of social-justice minded accountants committed to ensuring that one‘s ability to receive tax assistance should not depend solely on one‘s ability to pay for these services. Over the years, AccountAbility Minnesota has expanded its work by integrating access to affordable financial services and products into it tax

preparation process, and by helping to build the capacity of other organizations to offer similar services in their communities. Each year, the organization‘s tax services reach thousands of low-income taxpayers and serve as an access point for families to also obtain financial services and products.

For many low-income taxpayers, tax time means large refunds due to tax credits designed to move people above the poverty line. Through free tax preparation, AccountAbility Minnesota helps low-to moderate-income Minnesota taxpayers access the Earned Income Tax Credit (EITC) and other federal and state credits to ensure they receive the maximum refund they have earned. Tax credits, in particular the EITC, can offer a significant income boost. For example, in 2010, a single parent raising three or more children earning between $13,000 and $21,000 is eligible for the maximum EITC of $5,657 – a 27 to 44% increase in a family‘s

income. These tax credits can support family stability by providing for basic needs such as housing, food, and transportation, and they also can provide an opportunity to increase financial security if taxpayers are able to save a portion of them.

Financial services at tax time

Recognizing the unparalleled saving opportunities that tax time provides coupled with the opportunity to provide low-cost alternatives to pricey and predatory products being offered by the commercial industry, AccountAbility Minnesota launched its financial services program

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Financial Needs of Low-income Minnesotans

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in 2006. It began by providing low-cost Express Refund Loans – a groundbreaking alternative to the pricey, and often predatory, refund anticipation loans (RAL) being offered by paid tax preparers. AccountAbility Minnesota built in a savings component by coupling the loan with a free savings account, available regardless of credit or banking history.

Since 2006, AccountAbility Minnesota has added other products and services to its financial services program designed to move people along the savings and financial security spectrum that include: low-cost prepaid debit cards, access to free credit reports, free financial planning and public benefits screening. In 2011, AccountAbility Minnesota stopped offering its Express Refund Loan due to the IRS‘ removal of the debt indicator, a tool which AccountAbility Minnesota (and the commercial industry) used to determine if a portion or all of a customer‘s federal refund will be garnished.

Since the financial services program‘s inception, AccountAbility Minnesota has helped nearly 3,000 customers open savings accounts and, until last year, helped 1,700 customers access non-predatory Express Refund Loans. Access to free savings accounts continues to be a key component of Accountability Minnesota‘s programs.

Purpose of the evaluation

Although the financial services highlighted above are essential to help move people along the path towards savings and asset-building, there is still much to be learned about how to effectively promote asset building at tax time – and perhaps beyond - and how to more fully meet the diverse financial needs of the customer. While AccountAbility Minnesota has successfully institutionalized these ―low-touch‖ financial services during tax time, pending questions remained about how they can further support customers in their efforts to build

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assets by pairing financial services and products with access to mainstream financial institutions.

To enhance these efforts, AccountAbility Minnesota secured funding to conduct an evaluation of its financial services and an assessment of customers‘ financial needs. In the fall of 2010, AccountAbility Minnesota hired the Improve Group to help in these efforts. Between

December, 2010 and March, 2011, the Improve Group conducted focus groups and surveys with more than 150 low- to moderate-income AccountAbility Minnesota customers to learn about their needs and the impact that AccountAbility Minnesota‘s financial services has on their financial future. The following executive summary and report highlight the key objectives, findings, and areas for further exploration by AccountAbility Minnesota and partners in the asset building field.

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Executive Summary

Between December 2010 and March 2011, AccountAbility Minnesota and the Improve Group convened more than 150 Minnesotans with low to moderate-incomes to learn about their needs for and the impact that financial services has on their lives. This executive summary highlights the key findings from focus groups, interviews, surveys and record review. Taxpayers who utilize AccountAbility Minnesota‘s services often leave with hundreds, if not thousands, of dollars in refunds due to tax credits designed to supplement low-incomes. There is a unique opportunity to provide these taxpayers, including the banked and

unbanked, with services to help them use their refunds to build assets and economic security. Assets provide more than a cushion against hard times. Household savings help to build

aspirations and expectations for the future. The term asset poverty refers to a family‘s vulnerability to economic shocks—if they lose income, due to unemployment, a medical emergency, or even divorce, they have insufficient assets to live at the federal poverty level for three months. Findings show that 50% of Minnesota households making below $24,800 and 34% of households making between $24,801 and $44,800 are asset poor, meaning that they do not possess sufficient net worth to support themselves at the federal poverty level for three months without income.1

Studies show that people without access to traditional banking institutions, the unbanked and underbanked, are less likely to save and build assets. According to a 2009 Federal Deposit Insurance Corporation (FDIC) survey, 13% of Minnesota households are either unbanked or underbanked.2 In addition, the survey found that 36% of Minnesota households with income

levels below $15,000 were either unbanked or underbanked, while 18% of households with income levels between $15,000 and $30,000 were unbanked or underbanked. FDIC survey

1 Corporation for Enterprise Development Assets & Opportunity Scorecard. (2009) Asset Poverty Profile:

Minnesota. Retrieved From: http://scorecard.cfed.org/downloads/pdfs/assetPoverty/minnesota.pdf

2 Federal Deposit Insurance Corporation. (2009). FDIC National Survey of Unbanked and Underbanked

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findings also suggest the existence of racial disparities in access to bank accounts, with

African-American households comprising over half of Minnesota‘s unbanked and underbanked. This evaluation addresses three specific objectives regarding the financial service needs of low- to moderate-income Minnesotans:

1. To assess the financial planning and service needs, practices and experiences of low- to moderate-income individuals based on the experiences of AccountAbility

Minnesota customers and existing research.

2. To assess the strengths and gaps of existing financial products and services provided by mainstream financial institutions compared to those provided through Alternative Financial Services3 (AFS) for low- to moderate-income individuals based on the

experiences of AccountAbility Minnesota customers and existing research. 3. To develop and/or refine strategies, tactics and/or services for improving the

financial well-being and long-term asset accumulation for low- to moderate- income AccountAbility Minnesota customers.

Major Findings

Majority of respondents reported they don’t have enough to save. The most acknowledged barrier to saving for low- to moderate-income individuals is not having enough money to save (71%). Focus group data indicated that not having enough income to save has led many low- to moderate-income individuals to lose self-confidence in their savings habits. Some participants have proven to be effective savers in the past when they were earning more income.

Differences exist based on banking status. Survey findings demonstrate a significant income gap between those respondents who currently have a checking or savings account, the banked, and those who did not, the unbanked. As household income increases, the unbanked rate declines considerably. This income gap between the

3 Alternative Financial Services (AFS) are financial services provided outside a bank or credit union on

which many low-income individuals depend. Examples of AFS are non-bank money order, non-bank check cashing, rent to own agreements, refund anticipation loans (RALs), refund anticipation checks (RACs) and payday loans.

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banked and unbanked amplifies the barriers to saving and money management since income is further stretched among making payments towards bills and debt. Lack of a banking relationship coupled with the cost of transacting with the Alternative

Financial Sector (AFS) impedes the likelihood for the unbanked to save, however incrementally.

Trust and respect are essential for relationship building between low- to moderate-income individuals and mainstream financial institutions. Low- to moderate-income individuals are generally more likely to build strong, trustworthy working relationships with small community banks and credit unions than large mainstream financial

institutions. Individuals in this income range often feel unwelcomed at and distrustful of large mainstream financial institutions. However, low- to moderate-income

individuals would be interested in building stronger relationships with mainstream financial institutions if treated respectfully and provided with tools and products that reflect their individual needs and circumstances.

Incomplete assumptions exist about low- to moderate-income individuals’ priorities and needs. A divergence exists between what mainstream financial institutions

assume about low- to moderate-income individuals‘ priorities and desired products, and the actual priorities, needs and desires of low- to moderate-income individuals. For example, while mainstream financial institutions have traditionally understood customers to be focused on building assets and meeting long-term financial needs, the low- to moderate-income individuals participating in this study place greater emphasis on addressing short-term needs, with 59% of survey respondents confronted with paying unexpected expenses (e.g. car repairs and medical bills) and 56% focused on paying down debt.

Products need to reflect the needs and circumstances of low- to moderate

individuals and families. Individuals from low- to moderate-income communities are interested in building their financial knowledge, but have difficulty finding the financial information and products that are applicable to them. For example, mainstream financial institutions may assume that once a previously-unbanked or underbanked customer opens a savings account, the customer will naturally gravitate toward more advanced products and services. However, our data suggest that the newly banked customer may not be familiar with other products and/or is likely to perceive many services as targeting people in higher income brackets. Consequently, these customers may become less likely to search for new or additional services. This mismatch in expectations can cause the relationship between financial institutions and newly banked customers to deteriorate over time.

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Low- to moderate-income individuals want timely, relevant financial education.

Data from focus groups and surveys of AccountAbility Minnesota customers showed that newly banked customers‘ lack of financial education is not due to disinterest or unwillingness, but instead to lack of opportunities, awareness or an incongruity between what is offered and what they are seeking. This finding indicates that financial education planned with close attention to the needs of individuals in low- to moderate-income communities, especially the unbanked and underbanked, will have a better chance of helping to build relationships and access to services.

Alternative Financial Services (AFS) while not preferable are convenient and meet immediate needs.4 While the unbanked and underbanked often see AFS as a viable option, these businesses are not their preferred point of access for services. The primary reason for the use AFS is that these businesses provide them with the services they need (e.g. money orders, check cashing, payday loans, etc.) in a comfortable, accessible environment and in a rapid manner.

Areas for Exploration and Consideration

Despite lack of income and assets, many families are adept at getting by, navigating barriers, and efficiently utilizing the resources they have. Our research demonstrates that the

majority of low-income households want to save and learn more about ways to build assets. Families want their children to thrive, and want to save for their children‘s education. If savings products and education are properly aligned with the needs of low- to moderate-income consumers, families can overcome other barriers to build financial assets.

Nonprofits have traditionally provided financial education, counseling, and advisory services while the mainstream financial sector has supplied product development expertise and alternative credit underwriting tools. The two sectors have begun to work more closely together to meet the financial needs of low- to moderate-income individuals. This report

4 Alternative Financial Services are financial services provided outside of a bank or credit union, specifically non-bank money orders, non-bank check cashing services, payday loans, rent-to-own agreements, or pawn shops at least once or twice a year or refund anticipation loans at least once in the past 5 years.

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Financial Needs of Low-income Minnesotans

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demonstrates that there is reason for the two sectors to continue to work together closely and explore new opportunities to further align their efforts.

Bridging the divide between needs and existing services

Nonprofits such as AccountAbility Minnesota are uniquely positioned to serve as a liaison between low- to moderate-income individuals, including the underbanked and unbanked, and mainstream financial institutions.

Explore product innovation and enhancements. Key structural barriers to saving include low income level and a misalignment between available products and those which would meet the needs and circumstances of the unbanked and underbanked. Few savings products are designed and distributed with low- to moderate-income consumers in mind, and many people from this population find existing products inaccessible (e.g. high fees, liquidity and credit requirements, etc.). This can be addressed by developing partnerships with mainstream financial institutions to advocate for, help develop, and serve as a delivery channel for products and services that are reflective of low-income populations‘ needs.

Create strategies to optimize existing and develop new relationships with the newly banked. Nonprofits can tap into existing relationships with low- to moderate-income individuals as a means to help mainstream financial institutions build trust and strengthen their relationships with low- to moderate-income individuals. There is a small window of opportunity following the initial success of opening an account to further engage the customer in other products. By collaborating to offer appropriate products and relevant and accessible education, along with creating effective

marketing messages, mainstream financial institutions will be poised to further engage the newly banked and begin to develop a long-term relationship.

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Financial education is a key component to asset building

While it is essential for low-income individuals to have access to savings products and financial education through a ―one touch‖ service at tax time, more is needed to facilitate long-term asset building.

Increase access to financial education and explore various delivery models. As highlighted in focus groups and surveys, the newly banked desire education on managing debt, strategies for dealing with unexpected expenses, building credit, personal investment and more. There is a need to couple facilitated access to

financial services at tax time along with broader and more diverse financial education that helps the customer to become financially savvy and meet their individual

financial goals. The following approaches should be considered; partnerships with existing programs, easy to access locations, flexibility with times and modalities, and various delivery models.

Develop new marketing messages and strategies that appeal to and meet customers where they are. New marketing campaigns should be designed to detail the benefits of banking, the losses associated with remaining unbanked and using costly alternative financial services, and the tangible benefit of building assets. There is an opportunity to construct messages so that they tie the concrete value of asset accumulation to life events, such as tax time, and every day matters individuals are experiencing.

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Introduction and Methods

Project Objectives

The primary goal of this study is to help AccountAbility Minnesota better integrate financial services into tax time and to explore alternative approaches to meet the financial needs of the customers. Additionally, AccountAbility Minnesota will share findings with partners, both locally and nationally, with the hope of informing the broader field of the financial service needs of low-income individuals. The study has three primary objectives:

To assess the financial planning and service needs, practices and experiences of low- to moderate-income individuals based on the experiences of AccountAbility Minnesota customers and existing research.

To assess the strengths and gaps of existing financial products and services

provided by mainstream financial institutions compared to those provided through Alternative Financial Services (AFS) for low- to moderate-income individuals based on the experiences of AccountAbility Minnesota customers and existing research.

To develop and/or refine strategies, tactics and/or services for improving the financial well-being and long-term asset accumulation for low to moderate- income customers.

Methods of Analysis

To address the stated objectives, the evaluation and needs assessment collected and analyzed data from multiple sources. The study emphasized gathering information directly from low- to moderate-income individuals who use AccountAbility Minnesota‘s tax preparation services. The data collection methods and sources include:

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Focus Groups

Seven focus groups were conducted with 48 AccountAbility Minnesota customers. The focus groups explored participants‘ savings habits and financial goals, use of financial resources, impressions of AccountAbility Minnesota and mainstream financial institutions, and need for additional services. After analyzing data from the first four focus groups, additional questions about how participants choose financial institutions and what financial products they would find useful were added.

Surveys

One-hundred and five surveys (105) were completed (online and on paper) by AccountAbility Minnesota customers while they waited for tax preparation services.

Customers completed surveys at two tax clinic sites, the AccountAbility Minnesota office in St. Paul and the Minneapolis Urban League.

The surveys explored customers‘ financial priorities, use of services, barriers and needs related to saving and financial planning. Demographic data was also collected to help us determine whether any demographic characteristics correlated with customers‘ responses.

US Federal Credit Union Data

US Federal Credit Union provided data answering 14 questions regarding 886 AccountAbility Minnesota customers who opened savings accounts starting in 2006; approximately 45% also received Express Refund Loans5 through US Federal Credit Union.

Literature Review

Evaluation included a review of numerous articles published in research journals and

publications, and by nonprofit institutions. All literature review resources are provided in the bibliography.

5 Express Refund Loans were a low-cost alternative to Refund Anticipation Loans (RALS), which are

short-term consumer loans secured by a taxpayer‘s expected tax refund. AccountAbility Minnesota worked with US Federal Credit Union to offer Express Refund Loans to customers from 2006 to 2010.

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Interviews

Six interviews were conducted with the following participants:

o Two AccountAbility Minnesota seasonal financial services staff

o Representatives from two financial institution partners of AccountAbility Minnesota (US Federal Credit Union and US Bank)

o Staff from two Greater Minnesota nonprofit partners of AccountAbility Minnesota who also offer tax-related financial services on-site (Midwest

Minnesota Community Development Corporation and Community Action Duluth) Interview questions focused on the experiences of working with low- to moderate-income individuals (including the unbanked and underbanked), services that are offered, how relationships are built with customers, and opportunities for new service areas.

Limitations of the Evaluation

While the findings of this report are significant, there are limitations to this analysis.

 Surveys were collected at two of AccountAbility Minnesota‘s 13 tax sites (the St. Paul main office and Minneapolis Urban League). Therefore, the survey sample does not fully reflect or represent the full AccountAbility Minnesota customer base, and the sample was more geographically homogenous than the full AccountAbility Minnesota customer population.

 Survey and focus group data were collected during the months of January, February and March 2011, a time of notably challenging economic conditions for low- to moderate-income Minnesotans that will strongly influence the results reported in the evaluation.

 Results of this evaluation were strongly influenced by data collected at a moment in time. Data was not collected at different points in time to assess the influence of

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AccountAbility Minnesota services on their customers due to resource constraints. Therefore, assessments of change due to AccountAbility Minnesota services are based on a participant‘s response at a specific time, not the change in the participant‘s responses during different moments in time, influencing the firmness of the results.  Care was taken by the researcher to use a sampling method and sufficient sampling

size to result in strong, significant findings. However, the participants shared characteristics that should be considered when generalizing to a larger population, including the fact that they were recruited to participate based on their prior relationship with AccountAbility Minnesota, the participants‘ access to a data

collection site and the homogenous characteristics of the participants. Others in the general population who do not share these characteristics may not express the same feelings or experiences.

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Financial Needs of Low-income Minnesotans

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Context

AccountAbility Minnesota offers financial products and services at several of its tax clinics that help taxpayers maximize the impact their refund has on their financial future. Products and services offered include free savings accounts, low-cost prepaid debit cards, free credit reports, one-on-one financial planning and benefits screening. This evaluation will assist AccountAbility Minnesota as it strives to implement strategies and build upon its current financial services to meet the needs of the unbanked and underbanked in Minnesota. Furthermore, the findings contained in this report will bolster efforts to help AccountAbility Minnesota customers use tax refunds to build assets.

Assets provide more than a cushion against hard times. Household savings help to build aspirations and expectations for the future. Asset poverty measures a family‘s financial vulnerability to economic shocks—if one‘s income was suddenly cut off, due to unemployment, a medical emergency, or even divorce, would they have enough assets to live at the federal poverty level for three months? Findings show that 50% of Minnesota households making below $24,800 and 34% of households making between $24,801 and $44,800 are asset poor, meaning that they do not possess sufficient net worth to support themselves at the federal poverty level for three months without income.6

One of the major causes of asset poverty is a lack of knowledge about and access to traditional banking institutions. Studies show that the unbanked and underbanked are less likely to save and build assets. According to a 2009 Federal Deposit Insurance Corporation

6 Corporation for Enterprise Development Assets & Opportunity Scorecard. (2009) Asset Poverty Profile:

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(FDIC) survey, 13% of Minnesota households are either unbanked or underbanked.7 In

addition, the survey found that 36% of Minnesota households with income levels below $15,000 were either unbanked or underbanked, while 18% of households with income levels between $15,000 and $30,000 were unbanked or underbanked. FDIC survey findings also demonstrate the existence of racial disparities in access to bank accounts, with African-American households comprising over half of Minnesota‘s unbanked and underbanked.

Findings

The findings in this report are organized by the project objectives. Findings described under each project objective are broken down by the finding theme. Each finding theme is further broken down by findings from the literature review, survey data, focus group data and data provided by US Federal Credit Union as it is applicable.

Needs, Practices and Experiences of Customers

The savings aspirations of low- to moderate-income individuals are in conflict with

their circumstances.

The findings from our survey of AccountAbility Minnesota customers echo and provide further depth about the conclusions of previous studies regarding the savings behavior of low- to moderate-income individuals – it is difficult to save when little money is left over after paying expenses. As seen in Table 1, more than three-quarters (77%) of survey respondents stated that they do set priorities when it comes to managing their money. However, as displayed in Table 2, paying off current expenses precludes saving as a top priority. Thus survey respondents (78%) tended to place a high or very high priority on paying expenses while 71% said that they do not have enough money to save. Furthermore, 59% noted that they were faced with at least one unexpected expense over the course of the past year setting them

7 FDIC National Survey of Unbanked and Underbanked Households. (2009). Washington DC: U.S.

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further back on the path to saving. Plans for spending tax refunds provide further evidence of saving ability. Sixty-eight (68%) percent of survey respondents planned to use their refund primarily to pay bills, while about a quarter (27%) planned to use tax refunds to build savings.

Table 1: I DON’T Prioritize When It Comes to Managing My Money.

Nearly 80% of survey respondents disagreed that they don’t prioritize when it comes to managing money. Ten percent of respondents agreed.

Total %

Strongly disagree 47 45%

Disagree 34 32%

Neither Agree or Disagree 14 13%

Agree 7 7%

Strongly Agree 3 3%

Table 2: Difficulties with Saving.

Describing their difficulties with saving, over 70% of respondents stated that they did not have enough money and have to prioritize paying expenses over saving. Nearly 60% of respondents dealt with an unexpected expense over the past year.

Total %

My top barrier to saving is that I don’t have

enough money to save 75 71%

I have had at least one unexpected expense over

the past year 62 59%

I place a very high or high priority on paying

expenses (i.e. food, clothing, housing, etc.) 78 78%

Banked vs. unbanked

A deeper analysis of survey findings demonstrate that differences exist based on banking status, whether the individual surveyed currently has a checking or savings account.

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Research demonstrates a significant income gap between those who are banked and unbanked. According to the 2009 FDIC study of unbanked and underbanked, nearly 20 percent of lower-income U.S. households— almost 7 million households earning below $30,000 per year—do not currently have a bank account. As household income increases, the unbanked rate declines considerably. Only 4.2 percent of households with annual income between $30,000 and $50,000 and less than 1.5 percent of households with yearly income of $75,000 or higher are unbanked. Households with earnings below $30,000 account for at least 71 percent of unbanked households.

Table 3 broken out by banking status, mirrors national findings that very low-income households represent a disproportionately high share of unbanked. Fifty-five percent (55%) of the unbanked survey respondents made less than $10,000 compared to 26% of those surveyed who were banked. Similarly, 30% of banked survey respondents made over $25,000 as compared to only 6% of unbanked respondents.

Table 3: Income by Unbanked and Banked Status.

Total % Unbanked % Banked %

N 105 31 73 Under $10,000 37 35% 17 55% 19 26% $10,000 to $14,000 19 18% 6 19% 13 18% $15,000 to $24,000 25 24% 6 19% 19 26% $25,000 to $34,000 13 12% 1 3% 12 16% More than $35,000 11 10% 1 3% 10 14%

This income gap between the banked and unbanked amplifies the barriers to saving and money management since income is further stretched among making payments towards bills and debt. Fifty-three percent (53%) of survey respondents who are banked strongly disagreed with the following statement, ―I don‘t set priorities when making decisions with my money‖ compared to 23% of those who were unbanked. Since checking and savings accounts

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encourages money management, it is no surprise that the unbanked placed a lesser priority on paying expenses and reducing debt. While 79% of banked survey responded indicate they place a very high priority on paying expenses, 52% of unbanked responded comparably. Similarly, 51% of banked placed a very high priority on reducing debt compared to 29% of unbanked respondents.

Lack of a banking relationship coupled with the cost of transacting with the Alternative Financial Sector (AFS) impedes the likelihood for the unbanked to save, however incrementally. As shown in Table 4 below, 35% of those who have a banking relationship plan to use their refund to build savings for the future compared to 10% of the unbanked respondents. Similarly, only 13% of the unbanked indicated that they have made a savings plan with goals to manage their money compared to 39% of banked.

In focus groups, participants provided detailed information on the barriers to saving that many AccountAbility Minnesota customers confront. Focus group participants generally gave themselves poor ratings for saving habits. They noted, however, that their own low self-ratings did not indicate a lack of a personal budget or desire to save; in fact, a number of participants observed that they had been effective savers during times when they held jobs that offered higher salaries or wages than their current place of employment (if they were employed at the time of the focus group). The savings predicament of many focus group participants is illustrated in the following comment:

―For me, it‘s the income…There‘s just not enough to save, and that‘s the problem. I feel scared all the time; it‘s a really awful feeling. I really like when I have buffer money; I will save it. But when I don‘t ever have enough, and then an emergency happens, I‘m in trouble. If there was a way to have a comfortable income, I would be a pretty good saver.‖

Focus group participants generally gave themselves poor ratings for saving habits. They noted, however, that their own low self-ratings did not indicate a lack of a personal budget or

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Many of the people we interviewed stated that they budget for recurring expenses and things that they consider to be necessities (e.g. paying for children‘s activities, such as school athletics) but have a difficult time managing those expenses at their current level of income, which makes it more difficult to build savings.

Furthermore, consistent with our survey data, focus group participants indicated that their ability to save was frequently hampered by unexpected expenses, such as car repairs and medical bills. Tax refunds rarely amounted to increased savings, as participants commonly used this money to catch up on everyday bills, pay down credit card debt, and, in some cases, make larger-scale purchases that were expected to benefit them and could potentially allow for better income, such as a reliable car.

Table 4: Plans with Tax Refund.

Total % Unbanked Total Unbanked % Banked Total Banked % N 103 31 72

Pay bills (utilities, housing,

insurance, etc.) 70 68% 19 61% 51 71%

Reduce debt 37 36% 8 26% 29 40%

Make a big purchase 11 11% 3 10% 8 11%

Build savings for the future 28 27% 3 10% 25 35%

I don't plan to receive a refund 10 10% 6 19% 4 6%

Other purposes 3 3% 1 3% 2 3%

These findings are supported by the 2009 FDIC study of unbanked and underbanked households. According to the study, the most common reason why a household never opened a savings account was because they did not have enough money to save.8 Additionally, over

8 Federal Deposit Insurance Corporation (2009), ―FDIC National Survey of Unbanked and Underbanked

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41% of unbanked households stated that opening a savings account is ―not likely at all.‖ However, previously banked individuals were significantly more likely to open a savings account than individuals who never previously opened a savings account (16% vs. 5%, respectively).

Creating greater access to

relevant

financial education and planning is key to

building assets and relationships with mainstream financial institutions.

Focus group participants with savings accounts observed that having a designated place to build savings had not really been helpful in changing financial habits, mainly because of the myriad financial challenges—including low income and bills that prevented them from accumulating money. At the same time, these individuals felt that the presence of a savings account fostered an enhanced sense of security and were happy to have a safe place for their money, even if they were currently unable to build significant savings. Facilitated access to products needs to be paired with relevant financial education.

As seen in Table 5 below, the resource most frequently mentioned to help AccountAbility Minnesota customers

with money

management was financial education (33%). While about two out of five AccountAbility

Minnesota customers indicated that they would consult a bank or credit union to

obtain advice regarding their money, the most commonly mentioned sources of help were friends and family (55%) and websites (52%).

Focus group participants with savings accounts observed that having a designated place to build savings had not really been helpful in changing financial habits…At the same time, these individuals felt that the presence of a savings account fostered an enhanced sense of security and were happy to have a safe place for their money, even if they were currently unable to build significant savings. Facilitated

access to products needs to be paired with relevant financial education.

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Table 5: Top Need in Regards to Managing Money.

Over 30 percent of respondents need financial education to improve money management, while 18% chose products that will help them save as their primary need.

Total %

Financial Education 35 33%

Products to help me save (i.e. savings accounts,

money management software) 19 18%

Easy access to financial services (i.e. bank or

credit union) 13 12%

Help from someone I trust 11 10%

I don't have any needs 23 22%

Other 4 4%

The financial education needs of focus group participants varied from articulated, concrete long-term savings goals to more open-ended goals of creating a financial plan to begin saving incrementally. However, there is a mismatch between financial education topics that low-income individuals desire and the topics that financial institutions believe they are interested in. Focus group interviews with Accountability Minnesota customers revealed some differences between the perceptions of AccountAbility Minnesota financial partners and the actual practices and desires of low- to moderate-income individuals (including the unbanked and underbanked).

While it is true that some of the focus group participants would find very basic assistance with their personal finances (e.g. constructing a budget) useful, it was more often the case that the individuals we spoke with lacked knowledge related to more complex financial tasks such as choosing investment strategies or selecting from various long-term savings options.

…many (focus group participants) said they

would benefit from assistance in implementing a financial plan that would

help them to save more money, however small the amount.

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Financial Needs of Low-income Minnesotans

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Participants almost universally desired help with financial planning. This finding differs from the understanding of those working in the field, which suggests that the unbanked and underbanked need more guidance in personal financial basics, particularly with respect to the use of savings and checking accounts.

On topics such as retirement, for example, participants could recite a number of savings vehicles but knew little about the advantages and disadvantages of each option for people with lower incomes. Similarly, a number of young parents participated in the focus groups, and chief among their financial concerns was the question of how to invest in their children‘s future education. Many had already begun to think about the prospect of higher education and desired information about savings strategies that would enable them to make contributions to their children‘s college expenses. On these and other financial topics, participants frequently expressed uncertainty about where to go to seek out more information regarding available options or assistance with decision-making and planning.

Very few focus group participants articulated having begun working towards their savings goals and many said they would benefit from assistance in implementing a financial plan that would help them to save more money, however small the amount. Others mentioned that they would like to work towards creating discretionary or ―rainy-day‖ funds that they could draw upon to help cover unexpected expenses or use for family recreational activities.

Low-

to

moderate-income

individuals find it difficult to

integrate with the culture of

larger

mainstream

financial

institutions.

The lack of connection between the financial needs of the unbanked and underbanked and the culture of mainstream financial institutions contributes to difficulty in building stronger relationships

“Most of the large banks separate poor people from those

who are not poor, and the services always seem to shine on those who have as opposed to those who have not.

They don’t treat you with any empathy” -Focus Group Participant

(27)

between the parties. During focus group interviews, participants routinely expressed distrust of large banks and suggested that low-to moderate-income individuals are often not welcomed as customers. One key theme that emerged from these discussions had to do with inattentive and unfriendly customer service. The critique of customer service was manifested through a variety of examples, but common to most participants was the notion that there are ways in which they are made to feel that they do not belong in banks. Participants who had previously been, or currently were, account-holders at large banks frequently encountered the following issues in their interactions with banks:

 Impatience and unwillingness to help with mistakes made on bank paperwork forms. During focus group interviews, participants relayed stories about how simple mistakes on forms during attempts to withdraw and deposit money seemed to irritate bank staff, who did not demonstrate a willingness to show customers how to fix the problem.

 Experience of not receiving equal treatment by bank staff. Many conjectured that this is an outcome of their appearance and felt that the prevailing service attitude in banks should be more respectful. For example, one focus group participant, a carpenter, recalled standing in line in his work attire at a large bank where he held an account. As he waited, a representative from the bank asked customers if they might be interested in additional services. This representative, however, did not acknowledge the participant and continued greeting other customers. The participant felt that his attire had made him appear out of place by bank standards and thought that was the reason he did not receive bank services. This participant‘s sentiment was echoed in other stories and anecdotes regarding bank staff‘s ability to ―size people up‖ and detect a lack of resources, leading to a different quality of service.

 Perceived unwillingness to engage low- to moderate-income people with regard to financial products. Participants commonly expressed the sentiment that they did not feel valued as customers of banks because their savings are typically very modest and that few financial products seemed to meet their needs.

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Financial Needs of Low-income Minnesotans

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In addition, participants who had experience with large banks expressed concerns about heavy fees and surcharges associated with their accounts (e.g. overdraft and ATM charges). Participants suggested that surcharges were often ―hidden in the fine print‖ of paperwork stating the terms of their agreements with banks, leading them to feel misled and frustrated by what seems like an unfair fee burden. Several AccountAbility Minnesota partners suggested that stigma surrounding a checkered financial history may also dissuade low- to moderate-income individuals from accessing financial services and contribute to their sense of exclusion.

Participants who had experience with mainstream financial institutions tended to favor utilizing credit unions and small community banks. The service approach in these settings was described as more personal and geared toward their unique customer needs. For example, participants described tellers and other staff who knew them by name and took the time to acquaint themselves with details of their personal lives. In response, participants were able to forge relationships that helped them feel some sense of belonging to these smaller institutions. Furthermore, several people described how they were able to obtain small loans from community banks/credit unions that they felt a larger institution might have denied them. These participants attributed their success in obtaining these loans in part to the fact that they were able to establish personal relationships with staff members. One participant described a positive, trusting relationship with a small neighborhood bank:

―My bank is awesome…If I‘ve had car problems or even mention that, they say ‗you know we will approve you for a car loan‘ because they know who I am. That‘s really good for people to know. If something happens to my car I know I can go to my back because I‘ve kept my checking account in order…That‘s what I like about my bank; it‘s small and personal. They do

know who I am. Even though on paper I may not look great, they know that I‘m a good person, and they make sure that it works for me.‖

In addition to feeling more respected and valued, those participants who used credit unions and small banks often pointed out that, based on their experience these institutions applied fewer of the fees associated with accounts at larger banks.

Financial language can also be difficult to decipher for the unbanked and underbanked, a problem which is sometimes amplified during visits to larger mainstream financial

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institutions. The literature further supports many of the experiences of the focus group participants at mainstream financial institutions describing the following issues: experiencing a lack of frontline staff to assist them, few bilingual staff, lack of emphasis on customer service and sales, unfamiliar paperwork and applications, and the intimidating physical organization of bank lobbies.9 These factors may work to create in-group/out-group

distinctions that leave unbanked and underbanked people feeling excluded and lacking the cultural capital necessary to successfully access financial products.10

The unbanked and underbanked often see Alternative Financial Services as an

option, but not a preferable option to credit unions and banks.

Data gathered from focus groups and surveys of AccountAbility Minnesota customers indicate that Alternative Financial Services (AFS) (i.e. non-bank money orders, check cashing services, payday loans, refund anticipation loans (RALs), refund anticipation checks (RACs)) are not their preferred option, but when utilized, they generally felt AFS provide them with the services they need in a comfortable environment.

As displayed in Table 6, 60% of surveyed unbanked AccountAbility Minnesota customers strongly agree or agree they feel respected at the AFS institution they used. Furthermore, 57% of unbanked AccountAbility Minnesota customers agreed that the workers at the AFS institution they used are helpful; 56% of unbanked AccountAbility Minnesota customers agreed the AFS institution they used is in a convenient place and are opened hours that are convenient to them.

9 Seidman, E., & Tescher, J. (2003). Unbanked to Homeowner: Improving Financial Services for

Low-Income, Low-Asset Customers. In N.P. Retsinas & E.S. Belsky (Eds.), Building Assets, Building Credit: Creating Wealth in Low-Income Communities (pp. 316-347). Washington DC: Brookings Institution.

10Khashadourian, E., & Syldy, T. (2007). The Unbanked Problem in Los Angeles. Los Angeles, CA: United

Way of Greater Los Angeles. Retrieved from

http://www.unitedwayla.org/getinformed/rr/research/financial/Documents/The%20Unbanked%20Prob lem%20in%20Los%20Angeles.pdf

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Financial Needs of Low-income Minnesotans

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Table 6: Unbanked AccountAbility Minnesota Customers

N Total %

I strongly agree or agree that I feel respected at

the AFS institution I use 30 18 60%

I strongly agree or agree that the workers are

helpful at the AFS institution I use 29 17 57%

I strongly agree or agree that the AFS institution

I use is in a convenient place 30 18 56%

I strongly agree or agree that the AFS institution

I use is opened convenient hours 30 18 56%

While some of the service components common to AFS businesses appealed to focus group participants, nearly everyone had complaints about the excessive fees associated with financial transactions, particularly lending. Some participants characterized AFS businesses as a kind of emergency option that one could fall back upon in the event that quick cash was needed, but they were very unlikely to make use of these services on a regular basis.

Participants in focus group interviews also acknowledged some of the same convenience factors associated with AFS, but maintained a poor perception of these financial institutions overall. Focus group participants noted that AFS businesses were conveniently located and liked the variety of non-financial products that were available in addition to the conventional check-cashing, money order and lending services. Furthermore, a number of participants pointed out that AFS businesses employ staff that are generally friendly and possess better customer service skills than what they have experienced from their counterparts at banks. Among focus group participants who had used AFS in the past, many frequented such businesses prior to opening bank accounts—mainly for check-cashing purposes—after which their use decreased heavily. Some participants with bank accounts continued to use AFS, but

(31)

only because they offer a convenient option for paying utility bills.

The findings from the surveys and focus groups are consistent with the conclusions of some earlier studies. AFS businesses have worked on tailoring their services to the needs of the unbanked and underbanked. A 2007 study of AFS in the Los Angeles area indicated that many businesses have chosen locations within heavily-trafficked shopping malls and retail districts11. These AFS businesses typically offer a host of services that allow consumers to pay

their bills, purchase money orders, obtain prepaid credit cards, send money overseas, and buy postage stamps and even bus passes. The study also found that many check-cashing outlets provide photocopy, fax, and coin-counting services in addition to financial products. The availability of a variety of services and longer business hours during which they can be accessed allow AFS businesses to market themselves as convenient one-stop stores for the unbanked and underbanked.

Beyond convenience and breadth of services, research suggests that AFS businesses may appear more inviting to unbanked and underbanked customers than banks because their locations are often small and frequently offer bilingual

customer service.12 In banks, the physical organization of lobbies may prove intimidating for

those who do not frequently access this type of financial institution. Smaller size and a more nondescript physical environment may be more welcoming for unbanked and underbanked customers, while bilingual customer service staff provides support for those who do not speak

11 Khashadourian, E., & Syldy, T. (2007). The Unbanked Problem in Los Angeles. Los Angeles, CA:

United Way of Greater Los Angeles. Retrieved from

http://www.unitedwayla.org/getinformed/rr/research/financial/Documents/The%20Unbanked%20Prob lem%20in%20Los%20Angeles.pdf

12 Seidman, E., & Tescher, J. (2003). Unbanked to Homeowner: Improving Financial Services for

Low-Income, Low-Asset Customers. In N.P. Retsinas & E.S. Belsky (Eds.), Building Assets, Building Credit: Creating Wealth in Low-Income Communities (pp. 316-347). Washington DC: Brookings Institution.

While AFS establishments often charge high fees, unbanked and underbanked customers may find such fees

more acceptable than those charged at banks because they are communicated up front as part of a transaction.

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Financial Needs of Low-income Minnesotans

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English fluently. Some banks lack the necessary bilingual support staff to assist customers who are not fluent English speakers with the completion of various types of paperwork. In addition to the service and convenience factors associated with AFS businesses, the unbanked and underbanked may perceive these service providers to be less punitive than banks.13 At check-cashing outlets, for example, customers typically do not have to worry

about the consequences of bouncing checks or over-drafting; problems that may prove costly at a bank. While AFS establishments often charge high fees, unbanked and underbanked customers may find such fees more acceptable than those charged at banks because they are communicated up front as part of a transaction.

13 Khashadourian, E., & Syldy, T. (2007). The Unbanked Problem in Los Angeles. Los Angeles, CA:

United Way of Greater Los Angeles. Retrieved from

http://www.unitedwayla.org/getinformed/rr/research/financial/Documents/The%20Unbanked%20Prob lem%20in%20Los%20Angeles.pdf

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Strengths and Gaps in the Current Financial Services System

Few savings products are designed and distributed to meet the needs of low- to

moderate-income consumers, and many people from this population find existing

products inaccessible.

Focus group participants indicated that they did not frequently pursue bank and credit union financial products beyond basic savings and checking accounts because they perceived those products to be useful only for those with higher income levels. This perception was largely driven by the participants‘ personal experiences working with basic savings and checking accounts at banks and credit unions. Additionally, participants did not feel that these institutions took the time to introduce them to more advanced services. While participants often expressed a sense of being excluded from the use of financial products, they admitted to lacking knowledge about more advanced services.

Data from a US Federal Credit Union analysis of 886 AccountAbility Minnesota-affiliated members that opened accounts since 2006 exemplify the difficulty that low- to moderate-income individuals have in integrating and maintaining relationships with mainstream financial institutions.14 Particularly, the data highlights the barriers faced in maintaining

accounts and pursuing additional products.

As seen in tables 7 and 8, of the 886 Accountability Minnesota-affiliated members that opened accounts at US Federal Credit Union since 2006, 567 (64%) of those accounts have closed. The median number of days any AccountAbility Minnesota-affiliated members‘ membership stayed open was 413 days.15

14 Partnership between Accountability Minnesota and US Federal Credit Union began in 2006. 15 Partnership between Accountability Minnesota and US Federal Credit Union began in 2006.

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Financial Needs of Low-income Minnesotans

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Table 7: US Federal Credit Union – AccountAbility Minnesota Open/Closed Memberships

Year Membership Opened Count of All Memberships Count of Closed Memberships Percent Closed Memberships 2006 37 30 81% 2007 195 150 77% 2008 319 207 65% 2009 226 151 67% 2010 109 29 27% Total 886 567 64%

Table 8: US Federal Credit Union – Median Days Opened for Closed Memberships

Year Membership

Opened

Count of Closed Memberships

Median Days Opened Years

2006 30 713 1.95 2007 150 437 1.20 2008 207 413 1.13 2009 151 330 0.90 2010 29 126 0.35 Total 567 413 1.13

While income and product availability were factors that deterred survey respondents to close or refrain from accessing products at mainstream financial institutions other factors played a role. For example, nearly half (45%) of AccountAbility Minnesota customers surveyed noted that one reason why they decided to close or refrain from opening a savings account is because they preferred to carry cash in hand. In addition, 40% of AccountAbility Minnesota customers decided to close or refrain from opening a savings account because the bank fees were too costly to allow them to save money.

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Table 9: Reasons Why Savings Accounts Were Closed/Not Opened16

N %

I would rather have the cash in my hands 36 44%

Bank/Credit Union Fees are too high 35 40%

I do not have enough money to open a savings

account 35 66%

These findings are consistent with previous research in these areas. Key structural barriers to saving include low income level and the misalignment between savings products and

incentives. Low levels of income, however, are not an insurmountable barrier if savings products and incentives are properly aligned. For example, research shows that the difference in average income of those reporting an emergency fund of less than $500

compared to those with an emergency fund of more than $500 is less than $1,000.17 Income

did not entirely account in the variation in actual savings. While income has an impact on saving behavior, other structural factors play a substantial role in limiting saving.

Few savings products are designed and distributed to meet the needs of low- to moderate-income consumers, and many people from this population find existing products inaccessible. Studies show that many low- to moderate-income consumers find the services of mainstream financial institutions inaccessible for reasons including:

 Banking products such as checking accounts mandate that the account holder has some liquidity. This assumption can act as a deterrent to account utilization among low- to moderate-income individuals who may face non-sufficient funds penalties associated with bounced checks.

 Individuals may have success opening bank accounts but then find few financial products

16 Percentage is the sum of the number of respondents that Strongly Agree or Agree

17 Hachikian, C. (2009). Turning Today’s Economic Inflection Point into Tomorrow’s Savings Behavior.

Chicago: Center for Financial Services Innovation. Retrieved from http://cfsinnovation.com/publications/article/330660

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Financial Needs of Low-income Minnesotans

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that assist them in building on that initial success and establishing a stronger relationship with a financial institution. There may be a need to better align the priorities of short-term financial requests for unbanked and underbanked consumers to the products that mainstream financial institutions offer, which currently are predominantly geared towards long-term financial needs.

 Mainstream financial institutions often charge high fees for services such as check cashing and money orders. Additionally, if an unbanked or underbanked individual bounces a check or has to pay overdraft fees, that individual may feel discouraged from attempting to access financial services at mainstream institutions in the future.

 Currently, tax-based savings incentives (e.g. tax deferred accounts and health savings accounts) provide more benefits to higher-income than low- to moderate-income individuals.

 Poor credit history or an outstanding issue from a prior banking relationship precludes access.

Data from the 886 US Federal Credit Union AccountAbility Minnesota-affiliated members provides further evidence of the inaccessibility and incompatibility of existing mainstream financial services. As displayed in Table 10, of the 329 applications for loans from

AccountAbility Minnesota-affiliated, 74 (22%) applications were approved, 214 (65%) were declined and the remaining 41 (12%) were in process (as of February 2011) or cancelled. Many of these loans were likely declined due to the poor credit history of AccountAbility Minnesota-affiliated members compared to typical US Federal Credit Union members. Table 11 shows that the median credit score of a typical US Federal Credit Union member is 758 (out of 850), which is noticeably higher than the median credit score of AccountAbility Minnesota-affiliated members who opened a savings account (552). US Federal Credit Union reports that credit scores below 600 are unlikely to have a loan application approved unless it is a cash secured loan.

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Data, displayed in Table 10, from US Federal Credit Union of AccountAbility

Minnesota-affiliated members‘ average account balances further supports finding that the unbanked and underbanked feel they don‘t have enough money to save and are not considered for advanced products due to their limited income. While the average account balance of a checking account for a Typical US Federal Credit Union member is $3,534, the average balance for an Accountability Minnesota-affiliated member is $312. These differences are reflected in the size of outstanding balances of consumer loans between a typical US Federal Credit Union member ($11,140) and an Accountability Minnesota-affiliated member ($4,854).

Table 10: US Federal Credit Union - Loan Applications of AccountAbility Minnesota-Affiliated Members (N=329)

Total %

Approved 74 22%

Declined 214 65%

Application in Process or Cancelled 41 12%

Table 11: US Federal Credit Union – Credit Scores

Seventy-seven percent of AccountAbility Minnesota customers had credit scores of 639 or below, while 14% of typical USFED members fell into this range. 11 percent of AAM customers had scores of 680 or higher, while 77% of typical USFED members had scores in this range.

Score Typical USFED Member

Typical USFED

Member % AAM AAM %

700+ 22154 71% 79 9% 680-699 1805 6% 18 2% 640-679 2572 8% 45 5% 600-639 1562 5% 87 10% 599-360 2896 9% 573 67% 0 N/A N/A 56 7%

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Financial Needs of Low-income Minnesotans

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Table 12: US Federal Credit Union – Average Balance

Product Individuals Accounts Typical USFED

Member AAM Checking 60 61 $3,534 $312 Savings 327 514 $2,055 $315 Money Market 1 1 $21,447 $0 Consumer Loan 4 5 $11,140 $4,854 Credit Card 9 9 $2,806 $329

Nonprofits, in collaboration with financial institutions, have continued to drive

innovations to provide greater access and more useful services to low- to

moderate-income populations.

In response to the gaps and needs of low- to moderate-income populations, a growing number of nonprofits are beginning to facilitate or directly provide financial services and products. Generally, recent innovations fall into one of three categories:18

1. Consumer products and pathways: creation of new financial instruments, innovations in payment methods, or enhancement tools for asset-building.

2. Risk management tools or programs: Innovations in credit-building activities such as alternative credit scoring and underwriting tools for greater access to short and long-term credit.

3. Marketing and distribution methods: Innovations in marketing strategies, distributions channels, or any other research and policy programs aimed at providing a better understanding of the unbanked and underbanked market.

18 Shaw-Lin, C., Gordon, S., & M.J. Herrmann. (2008). Nonprofit Innovations for the Underbanked: Trends & Developments. Chicago: Center for Financial Services Innovation. Retrieved from http://cfsinnovation.com/node/330430?article_id=330430

Figure

Table 1: I DON’T Prioritize When It Comes to Managing My Money.
Table  3  broken  out  by  banking  status,  mirrors  national  findings  that  very  low-income  households represent a disproportionately high share of unbanked
Table 4: Plans with Tax Refund.
Table 5: Top Need in Regards to Managing Money.
+7

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