Program Overview. 595 Market Street, 16th Floor San Francisco, CA

Transcription

1 Program Overview 595 Market Street, 16th Floor San Francisco, CA

2 Our Financial Fitness Program In a tenuous economy where borrowers continue to struggle and the risks for financial institutions continue to grow, BALANCE can help. We support over 600 financial institutions by helping to reduce delinquencies and strengthen relationships through providing much-needed financial counseling and educational tools to the families they serve. Our program offers in-depth financial education to help your account holders avoid or overcome financial hardship and reach their goals at no cost to them. Helping families control their debt and manage their money reduces delinquencies, strengthens credit standing and prepares them to turn to you for savings, investment, and credit products. Collections Support Borrowers who are falling behind on their credit cards or loans are at high risk for charge-off and bankruptcy. Offering counseling and education on money management and repayment options will help your borrowers get back on track and at the same time will assist your collectors in reaching their goals. Loan Extensions Hardship programs, loan modifications or loan extensions can help borrowers who are falling behind with payments, but they can also be risky. Incorporating financial counseling into the loan extension process ensures that borrowers can handle all of their obligations, providing greater security for you. Point of Denial Loan denial is a delicate process. People with credit challenges may not see any other way to resolve their need than through a loan and if they can t get it from you, they may resort to a sub-prime or predatory lender. Offering counseling at the point of loan denial provides options for resolving the problem. Recommending counseling to borrowers who have been approved for loans, but not at the best rate, can help ensure any financial or credit problems that may be developing are resolved before they become significant problems. Once they have resolved their credit issues, these borrowers may return to you to refinance at a better rate. 2

3 Loyalty & Outreach Offering comprehensive counseling and education differentiates you from other financial institutions. Letting your account holders know you care about their well-being and not just their business helps you to: Discourage existing account holders from switching to another financial institution. Only 43 percent of consumers who purchased financial products in 2010 used their primary financial institution; those who stuck with their institution did so because they believed their bank or credit union cared more about them than profits. (Source: J.D. Power & Associates 2011 US Retail Bank New Account Study.) Encourage your account holders to turn to you for additional products and services. Forty percent of all consumers who had money management counseling with BALANCE bought or refinanced a home months after their session. Also, 21 percent purchased, refinanced, or leased a car and 40 percent began or increased a savings or investment plan in that same time period. Consumers are more likely to use the institution that referred them to BALANCE for these products. (Source: In-house study conducted by BALANCE.) Reach individuals and families that you currently are not serving. Helping people qualify for mainstream services enables them to avoid fringe financial services and predatory lenders. This can help you engage groups that have traditionally been wary of financial institutions. Providing outreach through BALANCE may also support your CRA initiatives or SEG penetration. The services of BALANCE integrate very well with our goal to deliver superior service to our members on a daily basis. Barry Jolette CEO, San Mateo Credit Union Financial Counseling Works People need and want financial education. A jaw-dropping 76 percent of all Americans say they could benefit from financial advice from a professional. Nearly half of all Americans 41 percent gave themselves a grade of C or lower on their personal finance know-how. More than half 56 percent don t have a budget, 65 percent haven t ordered a credit report in the last year, and 12 percent carry credit card balances of $2,500 or more. (Source: National Foundation for Credit Counseling 2011 Consumer Financial Literacy Survey Final Report.) Counseling works. Two out of three consumers who received credit report education from BALANCE improved their credit score over the course of a year. The average improvement was 36 points. (Source: In-house study conducted by BALANCE.) 3

4 Services BALANCE extends your ability to provide quality financial education and counseling, and equips you with the marketing materials and communications to help those you serve maximize these resources. InfoLine Multilingual certified credit counselors are available to answer a wide variety of money management and credit questions immediately. After the call, counselors can provide additional education materials on an array of topics tailored to the caller s needs. Money Management Counseling In an hour-long telephone counseling session, the counselor walks the caller through his or her current spending pattern, creates a spending and saving plan, discusses goals ranging from getting out of debt to saving for retirement to obtaining credit, and develops an action plan for overcoming challenges and achieving goals. Credit Report Review A counselor reviews the caller s report and can answer questions about credit scoring, building a strong credit history, and correcting inaccuracies. Foreclosure Prevention Counseling For homeowners who are struggling with their mortgage payments or fear they may be unable to pay in the future, we provide early delinquency intervention counseling to explore the options available. Home Purchase Education We provide comprehensive education on all aspects of the homebuying process, including saving for a down payment, setting a budget, applying for a mortgage, and preparing for closing. Identity Theft Solutions A counselor provides guidance on protecting against and recovering from identity theft. Debt Repayment Options Very often, callers are struggling with debt. Counselors review their options, weighing the pros and cons of each, and create a plan. One popular solution, a Debt Management Plan, is a voluntary arrangement we set up between borrowers and creditors. The borrowers make one payment to us each month, which we distribute to the creditors, who may make interest and payment concessions. National Referral Database At times a counselor will uncover a client s need for assistance beyond the scope of our services. Our counselors are sensitive to these needs and can give confidential references to the appropriate non-profit organization. For years, SECU members asked for our help with budgeting and financial counseling we failed to deliver. BALANCE has been a beneficial, affordable, much used and appreciated solution for the SECU membership. BALANCE is a win-win for the Credit Union sound policy, good practice, great P R, philosophically a solid fit. Jim Blaine President, State Employees Credit Union, North Carolina 4

5 Specialized Initiatives and Outreach Whether it is for borrowers seeking flexible payment terms or a product they wouldn t normally be able to qualify for, setting up a specialized program through BALANCE is a way to provide comprehensive assistance and service to your community while reducing your risk. Loan Extensions By making financial counseling a requirement of receiving a loan extension, you can address the bigger picture of the borrower s financial situation so that he can successfully make payments in the future. Salary Advance and Overdraft Privilege Program Support We offer counseling and education to account holders who overuse salary advance and overdraft protection services to help build their money management skills and break the cycle of dependence. Housing Education Many specialized housing programs require pre- or post- purchase housing counseling. We are approved to provide the necessary education and counseling for many of these programs. In addition, many of our partners require counseling or education through BALANCE as part of their own mortgage loan programs. Reaching Underserved Communities BALANCE supports outreach to the Spanish-speaking community as well as other communities that often do not receive equal access to financial services. We have counselors who speak Spanish, Mandarin, Cantonese, Tagalog and many other languages. Youth Outreach Help your younger account holders get started on the right foot. Some of our partners require or reward completing counseling or education through BALANCE to make sure young account holders start out with a strong financial foundation. Workshops, podcasts, and online resources especially for teens and college students are also available. Second-Chance Checking Programs Aid the unbanked population and empower them to become responsible account holders. BALANCE provides support for fresh-start or second-chance checking programs through online education, specialized checkbook balancing counseling, and workshops. 5

6 Online Education Different people have different learning styles. Some prefer accessing resources over the phone, while others prefer self-guided web-based education. Our online tools give the families you serve access to a wealth of financial education at their pace, whenever they want it. BalanceTrack BalanceTrack is a series of education modules designed to help consumers navigate all of the elements of personal finance. Each module includes five chapters of easily absorbed content and a quiz. Many also include a podcast of the content for users who learn best by listening. Because we share the quiz results with you, the modules can be used as a requirement for special loan or savings programs. OnTrack OnTrack is an easy-to-use tool for creating a comprehensive money management plan. Through step-by-step guidance, users create an accurate and realistic spending plan that gives them a clear picture of where their money is going and helps them determine what changes they can make to improve cash flow. OnTrack also helps consumers put their debt in perspective and create a plan for becoming debt free. Upon completion, users may submit their information to BALANCE for a counseling session, or opt to inform you that they ve completed a plan, so you can use it as a requirement of certain products or services. InBalance An online checking account management education program, InBalance helps account holders struggling with courtesy pay overuse develop the tools they need to be successful account holders. Social Media Facebook BALANCEPro or Joining us on Facebook or Twitter is a quick and easy way for the families in your community to stay up-to-date on personal finance news and trends as well as the latest resources from BALANCE. You can help by putting a link on your website, retweeting, or reposting so they can join the ongoing discussion, and get updates and resources related to the money matters that they care about the most. 6

7 Financial Education Site Our education site has a library of educational tools designed to assist with mastering finances: Article topics range from money management to identity theft to planning for the future as well as checklists and forms that help with getting organized. Our mini-sites and podcasts have in-depth information about more complicated financial issues. The calculators section gives consumers the figures they need to make informed decisions. Our monthly e-newsletter, Quick Tips, and quarterly web newsletter, Dollars and Sense, provide timely advice you can share with your community. Also on our site, users have access to online chat so even those reluctant to pick up the phone can reach a counselor with questions or concerns immediately. Workshops Our broad range of financial workshops helps participants master their money while providing you an opportunity to promote your services and support your educational goals or requirements. BALANCE presenters can come on-site to conduct the workshop, or you can license the content for your staff to present as needed. Licensed workshops include branded participant s handouts, visual aids and trainer s guides all provided electronically for you to print and use where and when you want. Many topics are available in Spanish as well as English and can be provided as webinars. 7

8 Partner Relations One of our core values is creating long-lasting partnerships. Our partner relations team is enthusiastic about listening to your needs and finding solutions that help you and the families you serve get the most out of the program. While our entire management team is always available to any of our partners, you are assigned a partner relations manager as a primary point of contact. The partner relations manager works closely with your management team to ensure a smooth rollout of the service and keeps in contact with key staff throughout the partnership with updates, metrics to measure success of the program, consultations to improve usage, and special initiatives tailored for your community. partner Orientation After you partner with BALANCE, a trainer will orient your staff. Employee support is integral to success, and we make sure your team understands the scope of services and how to make referrals. The training presents the features of the program and motivates and excites employees about the partnership. Marketing Support Our marketing team will work with yours to help get the word out. We can provide articles for your newsletter and website, inserts, brochures, posters, sample letters for targeted mailings, and web banners. Our partner tools website, contains promotional tools, and our marketing and partner relations teams can share the success stories of other marketing initiatives, so you can base your plan on proven models. Reporting We ll provide you with reports detailing program use. These reports, available online (and in full compliance with privacy laws), can also be used to determine types of further promotion of the partnership, identify opportunities to cross-sell your products, and spot borrowers at risk of default. A Partnership That Supports Your Goals A partnership with BALANCE supports your goals, whether they include reducing losses due to charge-offs and bankruptcy filings, differentiating yourself from the competition, supporting SEG outreach, streamlining your CRA initiatives, developing stronger relationships, reaching out to underserved communities, improving employee knowledge, enhancing your internal counseling program, or promoting your products and services. By putting a high-quality financial fitness program in place, you are providing your staff with a trusted resource. Staff who work with consumers on personal finance issues such as credit reports, money management, and debt repayment will be able to confidently provide advice and offer further assistance through BALANCE. This partnership ensures that your account holders get the attention they deserve without unduly draining staff resources. Your account holders and their families do not pay a fee for counseling, so they can address their financial issues without concern for cost. Our counselors and educational materials will help them join the financial mainstream, establish control, get out of debt, and attain their goals resulting in fewer losses and increased opportunities for you and a brighter financial future for them. Help the families you serve achieve BALANCE by calling today BALANCE