Projects
Steer Clear
This study examines how credit unions can viably lend to more low and moderate income borrowers in a safe and sound manner.
Emerging Market Review
Emerging Market Review is consulting for depositories on reaching emerging markets. I've found the work to be rewarding: visiting CUs, analyzing their business, and recommending product and process improvements that can increase their service to underserved markets.
EMR is based on an extensive review and classification of successful product innovations and adds to that sound business models. The process is liked a guided audit, which identifies opportunities for improvement in specific products, processes and services.
Check cashers, payday lenders and buy-here-pay-here auto dealers have been the fastest growing segments of the financial sector. Besides offering high cost products, Financial Service Centers provide no linkages to asset building, effectively stranding their clients. Community Development Financial Institutions have brought vigorous innovation to the field, but not scale and sustainability. Emerging Market Review brings existing CDFI innovations to scale in financial institutions.
For a client, EMR is structured like an audit. Background information is requested and reviewed. Interviews are held with management to review overall strategic planning. Meetings with each department are scheduled to analyze the products and processes by which that plan is implemented. The review covers Facilities, Products/Processes, Board, Fundraising, Partnerships, and Outreach/Education.
The resulting EMR report ideally contains “AHA” moments, new way of looking at existing customers, and a better understanding of how to revise products to meet customer needs. Most of the recommendations are small changes that can unblock demand. This file contains a recent EMR report
The core principles of EMR are
- Start where they are. Build replacement products that mimic the
features of Sub-Prime models. For example, a standard checking
account is not a close replacement product for check cashing.
Savings accounts are frequently not a good starter product. - Build sustainable products. Make money. These are not charity
products. There is plenty of market space to charge and reasonable
fee and avoid predatory practices. - Think in Product Cycles that envision how customers grow financially.
For example, the Checking cycle starts with check cashing. The next
product may be prepaid cards. From there, the cycle can move to
basic checking. A Youth Product Cycle starts with youth savings, may
move to gift or prepaid cards, then to youth checking, student loans,
and first time auto loans. - Continuous path. In order to facilitate migration to assets, build a
continuous product pathway. Consciously examine where and when
customers are eligible for Step up or Product Migration. Find and fill
the missing steps. - The Business Model for this system is Life Cycle pricing, not functional
cost or relationship pricing. - Provide Education at Teachable moments. Just in time financial
education is provided as part of the transaction process.
Customers are available for guidance in these situations.
Examples: New Account opening, Loan closing, 18th birthday,
Marriage, Divorce, Loan Payoff. read (doc)
Credit Union Funding Access Team
Independent consultant group providing CDFI Certification applications for NCUA Low Income Designated Credit Unions.
Aspen Asset Platform
The Aspen Asset Platform, funded by Living Cities, is a partnerships of 14 non-profits to deliver web-based training, tools and financial products to support community-based organizations in client asset building. The Asset Platform will contain:
- Tools to better assess client needs
- Access to quality financial products and services
- On-line training
- Access to advanced, experienced help
- Budgeting and Money Management
- Savings Tools and Strategies
- Debt Management/Foreclosures
- Credit Reporting and Credit Scores
- Insurance