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THE SUPERVITAMIN QUARTERLY
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Letter From The President and CEO
The start of 2014 is a real turning point in the development of the Cities for Financial Empowerment (CFE) Fund, and I'm excited to share news and updates with all of you in this second edition of The Supervitamin Quarterly. As some of you may already be aware, following the completion of Mayor Michael Bloomberg's 12-year administration in New York City, I have transitioned from my appointment as Consumer Affairs Commissioner into a full time role at the CFE Fund as President and Chief Executive Officer, and I thank CFE Fund's inaugural Board of Directors for the honor. I am thrilled to devote my full professional attentions now to the vibrant municipal financial empowerment field, and look forward to working with our partners to build upon the great work across the country over these last few years of our field's existence. There's so much cities can accomplish for their residents in need. Looking ahead, our growing team at the CFE Fund has lots of new projects in the works, as well some exciting milestones and updates from the field. In this edition, we'll update you on the early success of Financial Empowerment Centers in Denver, Lansing, Nashville, Philadelphia, and San Antonio; the launch of Financial Empowerment Centers in seven additional cities; our new national Bank On 2.0 municipal banking access initiative; and more. As always, stay tuned for more updates and information on how you or your organization can get involved. And please don't hesitate to e-mail us with any questions or ideas at [email protected]. Looking forward to a productive 2014, Jonathan Mintz |
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CFE Fund Supports Financial Empowerment Centers In Seven New Cities With Technical Assistance Grants
In the September issue of the Supervitamin Quarterly, we announced that due to keen interest in launching Financial Empowerment Centers from cities across the county, the CFE Fund released an RFP for in-kind technical assistance grants to help cities get their own Centers up and running smoothly and productively. In response to that RFP, we received strong applications from across the country and are thrilled to announce that we will be awarding in-kind grants to seven new cities: Cleveland, OH; Hartford, CT; Hawai'i County, HI; Los Angeles, CA; Miami, FL; San Francisco, CA; and Seattle, WA.
With the new grants, and thanks to the initial replication investment made by Bloomberg Philanthropies, the CFE Fund will provide robust technical assistance and capacity building resources to each of these seven cities. This assistance includes access to planning and implementation documents and collateral, access to CFE Fund expert staff, participation in the CFE Fund National Learning Network, fundraising support, access to proprietary software, and more.
At the new Centers, professional financial counselors will help their clients reduce debt and build savings in tangible and measurable ways, including: erasing erroneous debts and correcting credit histories; advocating with creditors directly to lower old fees and penalties; negotiating with creditors for more favorable payment plans, total debts owed, and ongoing interest rates; identifying new sources of income such as unclaimed benefits like the childcare tax credit, the earned income tax credit, and others; and creating budgets and payment plans that facilitate realistic savings plans.
We are excited by the thoughtful, creative approaches these cities put forward in their applications. Each grantee city has demonstrated committed leadership and forged strong local partnerships to replicate the professional one-on-one counseling model through their administrative program portfolios. We can't wait to see the positive impact these new Centers will have in each of these communities!
To learn more about these CFE Fund Technical Assistance Grants, click here.
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Bank On 2.0 Officially Kicks Off In Louisville
In the last issue, we also announced that the CFE Fund would be embarking on a partnership with the JPMorgan Chase Foundation to launch Bank On 2.0 - an unprecedented national initiative to provide best practices and resources for local governments to connect their unbanked and under-banked residents to basic, safe, and affordable banking products and services through municipal initiatives and programs.
In December, we held an official launch event for Bank On 2.0 in Louisville, KY. CFE Fund leadership was joined by Louisville Mayor Greg Fischer; San Francisco Treasurer Jos� Cisneros; JP Morgan Chase Kentucky President Paul Costel; and many of our partners from around the country to officially kick-off the national Bank On 2.0 movement.
The two year planning process is now underway. In the upcoming months, the CFE Fund will be convening multi-sector stakeholders (financial institutions, regulators, city leaders, nonprofit partners, researchers, and others) to craft the Bank On 2.0 initiative's parameters, products, services, delivery mechanisms, and more. We will also be releasing a call for pilot and research programs, so stay tuned.
To learn more, you can also check out Jonathan's blog post on the Corporation for Enterprise Development's (CFED) The Inclusive Economy here. For more information about the Bank On 2.0 planning process, contact Suzanne Reisman at [email protected].
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FINANCIAL EMPOWERMENT CENTERS UPDATE
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Financial Empowerment Centers Already Provide More Than 13,300 Counseling Sessions Across Five Cities
In January 2013, the CFE Fund, with the support of Bloomberg Philanthropies, awarded grants to five cities to replicate New York City's successful Financial Empowerment Centers. Denver, CO; Lansing, MI; Nashville, TN; Philadelphia, PA; and San Antonio, TX were selected to receive Financial Empowerment Center grants through a competitive process in which nearly 50 cities applied.
 Since the Centers opened their doors in early March 2013, professional counselors have conducted more than 13,300 one-on-one counseling sessions, helping more than 6,100 clients work to pay down debt, access safe and affordable banking products, increase savings, and improve their credit scores. The Centers have already helped clients reduce their debt by a total of more than $3.5 million and increase their savings by more than half a million dollars.
These impressive aggregate accomplishments are made up of thousands of individual stories, like a woman named Rosa in Nashville. Faced with unemployment and a debt level that caused her such "incredible pressure" that she frequently would awaken in the middle of the night, Rosa met with a Center counselor, Ashley Warbington, in March. "I felt like I was drowning in debt. Before coming [to a Financial Empowerment Center], I felt alone," she recalls. Working with her counselor, Rosa reduced her debt by nearly $29,000, increased her savings from zero to $4,000, and opened a safe, affordable bank account. Through referrals to partner agencies, Rosa also secured a part-time job and moved into senior housing. Rosa is continuing to meet with her counselor and make progress toward prolonged financial stability.
To read more about Rosa's story, click here. To learn more about the Financial Empowerment Centers, click here.
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