Barbara Reed, Director, Stand By Me Field Operations, West End ...

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Nov 10, 2013 (3 years and 9 months ago)

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June 2013


TM

www.standbymede.org



COMMON CUSTOMER FINANCIAL ISSUES:


Many working individuals and families traditionally struggle with the following financial
issues:




High debt (medical, student loan, credit cards , etc.)



Low credit scores



Lack of access to traditional financial services and products



Exploitation by the “fringe” financial sector



Monthly expenses that exceed income



No savings or safety net


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DELAWARE’S METHODOLOGY



Integration with Public/Private Partners:
-

Integrated Financial Empowerment
with public benefits, non
-
profit organizations, community resources, financial
institutions, etc.



Provide FREE opportunities for professional financial management and credit
services:
-

Financial coaches have streamlined access to alternative and
creative financial products (8 Great and Beyond), tri
-
merged credit bureaus
with score, Money Menu (DE bank comparison tool), HUD certified housing
counselors, CCCS consolidation options, and more!




Diverse locations:
-


Meeting the customers where they live and work. Access
to full $BM services is available within local businesses, colleges and
universities, community centers, child care centers, and our referral network.



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FINANCIAL EMPOWERMENT SERVICE PACKAGE



Personal Financial Coaching and Education:



budgeting, debt, credit establishment/re
-
establishment, and overall personal

money management




Financial Services



access to checking and savings products, affordable and/or fee free debit

cards, and affordable credit builder loans




Post Secondary Education Services




increasing long term planning, FAFSA applications, managing student loan

debt, retention/completion planning



Tax Preparation Services



utilizing free tax preparation services and access to free self
-



service tax software


CREATIVE THINKING

The Key Element of the
Success Strategy


While customers are often stuck in the “immediate and
obvious” financial difficulty, $BM Coaches must implement
a big picture approach.


-
If we accomplish the NOW, where do we need to go THEN?

-
If we can SOLVE a), could we plan to REACH b)?


How can we move the customer forward to not only meet
their immediate and obvious needs, but develop and
empower them to plan to become financially capable?

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ONE
-
ON
-
ONE FINANCIAL COACHING

Clients
are Creative, Resourceful and
Whole
-

But often unaware!



Coaches must be
willing to meet the customer “where they are”



This
means not always agreeing with their start point or path but realizing in the end,
we will get to the ideal place if the customer is open and willing.




Coaches must be
fully aware of our products and resources



ALL OF THEM.
From the 8 Great, to the banking industry in our state, to our community
partners and network of experts.




Coaches must be
able to connect the hidden dots
to address
financial
emergencies with asset building programs that promote
empowerment,
economic growth, and ultimate self
-
sufficiency .


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Creative Scenarios:



Customer 1. comes in seeking emergency utility assistance



Customer 2. is behind in bills and uses check cashing outlets and money
orders because her bank account is overdrawn/closed



Customer 3. wants to plan for vacation with children even though she is on
the verge of eviction



Customer 4. wants review of credit to determine if he can get a loan to
repay some debt



Customer 5. has a credit score of 600+ but can’t save to buy a home




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IMMEDIATE OUTCOMES


Increasing empowerment and engaging customers in long
-
term financial planning













FOR ALL:



Household budget
established


Savings
strategy established


Debt identification


Credit reviewed


Next step identified


Long term plan developed


Resources / Tools provided





FOR MOST:



Repeat visits to financial the financial coach


Household budget maintained


Savings strategy automated


Debt repayment begins


Credit scores increased


Participation
in financial planning workshops



Reduced financial stress in household



Transition from the fringe financial sector


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What our customers accomplish:



TARGET:
Savings Establishment

RESULT:

29% of customers have started and/or increased savings


147 Opened savings accounts


165 Began auto deposits


250 are now saving regularly



TARGET:
Credit rating improved

RESULT:

42% of customers have improved credit scores


158 Began debt repayment plans


121 Corrected their credit reports


542 increased credit/asset





QUESTIONS?



www.standbymede.org






Copyright 2011. Delaware Financial Empowerment Partnership. All Rights Reserved. Slide
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