OFFICE OF FINANCIAL EDUCATION

Community Financial Access Pilot

Implementation Guide

March 2009
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Introduction

This Implementation Guide was developed to serve as a training and reference tool for the

BoP financial institutions and community partners. The information and recommendations

enclosed in this document are meant to help BoP partners develop their processes and

structure their activities to successfully get the unbanked banked.

The information contained in this manual encompasses the strategic plan and processes

developed by BoP, identifies promising practices on banking the unbanked, lessons learned

from Treasury’s First Accounts Program, best practices from other ”Bank on” models, and

studies conducted by reputable organizations and researchers with critical knowledge and

experience in banking the unbanked.
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TABLE OF CONTENTS

Bank on Philadelphia - Overview 4

Guiding Principles 5

Leadership 5

Financial Products and Services 9

Financial Education 11

Planning for Onsite Account Opening Activities 11

Marketing and Promotional Tool Kit 12

Data Collection 13

Bank on Philadelphia Contacts 13

Bank on Philadelphia Partners 14
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Bank on Philadelphia - Overview

Background

Philadelphia, PA has been selected as one of eight pilot communities to participate in the

U.S. Department of the Treasury’s Community Financial Access Pilot (CFAP), known locally

as Bank on Philadelphia (BoP). Bank on Philadelphia is being led locally by the Office of the

Philadelphia City Controller.

Mission

The mission of BoP is to increase access to mainstream financial services and financial

education for low-to-moderate income families and individuals in Philadelphia.

Need

Tens of thousands of Philadelphians spend much of their hard-earned money on high fees to

cash their paychecks, conduct regular financial transactions, and have little savings or assets.

Philadelphia’s low and moderate income families in particular are paying higher prices to

cash their checks by not having an account with a mainstream financial institution. In our

current economy, an account with a bank or credit union can be a life-line and a path to

economic mobility for low income working families in Philadelphia.

 More than 81,000 Philadelphians do not have an account with a bank or credit union

and as many as 220,000 residents need a second chance or a Fresh Start account.

 Approximately 20% of all households in the Philadelphia area cash their payroll checks

at a check casher and pay as much as $450 to $900 in charges per year.

 In 2006, Philadelphians paid out over $12.5 million in fees to check cashers to cash

their personal, government, or employment checks.

 Low-income Philadelphians often pay annual percentage rates of over 450 percent

for short-term loans when they take out loans from pay-day lenders .

The high prices paid by Philadelphians for

daily financial transactions are preventing

them from accumulating wealth. That

means they have less money to invest in

their futures -- in personal savings,

education, homes, home repairs,

retirement, and their children. The lack of

wealth is holding low-income families

back.

Note: It costs to be unbanked! As a result of

being unbanked, people may pay more to

cash a check, pay a bill, are at-risk of being

robbed because they are carry cash,

struggle to save for emergencies and do not

build positive credit.

BoP will leverage a wide range of organizations, banks, and credit unions to connect low-tomoderate income consumers to no-cost or low-cost financial accounts with mainstream
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financial institutions. In addition, through the Better Choice Program with participating

credit unions in the City of Philadelphia, members and potential members will be able to

access a lower-cost alternative to existing payday lending products. This financial product

can move people away from wealth-stripping payday lenders toward wealth-building

institutions and help them break the cycle of debt and encourage a savings habit.

Guiding Principles

 BoP is intended to provide financial account access and financial education to low-tomoderate income individuals that have some earnings.

 BoP is open to all interested national and regional banks, community banks, and

credit unions.

 BoP partners represent community and faith-based organizations, financial

institutions, employers, local, state, and federal government agencies, associations,

businesses, and other organizations interested in promoting financial access and

financial education.

 BoP is performance-based and focused on measuring access to accounts and access

to financial education as a way to demonstrate effectiveness.

 BoP partners proactively assist individuals to open financial accounts and

promote savings through direct deposit.

 BoP financial education providers implement the BoP standard pre-test and

post-test to all financial education class participants to ensure participant

achievement is measured and financial education is improved as needed.

 BoP Financial Education Network is inclusive of all interested financial education

providers and curriculums that meet the BoP accepted recommendations.

 BoP is a self-sustaining effort.

Leadership

Philadelphia’s City Controller, Alan Butkovitz, is spearheading BoP in partnership with the

U.S. Department of Treasury’s Office of Financial Education’s Community Financial Access

Pilot.

Coordination

The coordination of BoP will be lead by the Controller’s Office BoP Coordinator and

Treasury’s Community Consultant. The Controller’s office has dedicated in-kind resources

including staff, web development resources, website hosting, meeting coordination, and

marketing support, printing, and other resources. Treasury’s Office of Financial Education

has dedicated a Community Consultant and other in-kind contributions to assist in the

development of BoP. Through designated committees and small working groups, BoP has

identified the guiding principles, procedures, processes, and resources for the development

and implementation of the initiative.
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 The Steering Committee represents an array of diverse partners. The Committee is

comprised of representatives from local, state, and federal government, non-profit,

financial institutions, public agencies, and other organizations who have committed

time and resources to BoP. The Committees’ role is to guide the development of the

strategic plan, timelines, and benchmarks for implementing BoP. Subcommittees

include representatives of these participants.

 The Products and Services Subcommittee develops the objectives for BoP and

provides guidance on expanding the availability of appropriate financial products and

services. The subcommittee also provides recommendations for ensuring availability

of financial education through the BoP Financial Education Network.

 The Community Outreach Subcommittee identifies new partners, employers,

community venues, and events that provide opportunities for opening accounts.

The committee will collaborate with the Design Group and the other committees to

ensure that the promotional materials, outreach strategy, and promotional activities

are appropriate for reaching the unbanked and supportive of the identified

performance measures.

 The Design Group is responsible for developing and coordinating the marketing

materials and recommending a marketing plan for approval by BoP partners.

Note: The Bank on Philadelphia is an unfunded initiative, supported entirely by the in-kind

contributions and work of all its partners and their networks.

The Role of the Office of the City Controller of Philadelphia

As the lead convener of BoP, the City Controller will provide leadership and technical

assistance in the development and implementation of the initiative. The City

Controller will assist in informing and engaging interested partners to participate in

BoP. Coordinating activities include:

 Convening steering committees and work groups.

 Providing presentations to new partners who may be interested in joining BoP.

 Offering meeting space to BoP partners.

 Hosting and updating the BoP website with information and support materials on

BoP, including marketing and promotional tools, implementation guide, pre-test and

post-test, data collection form, financial education schedule of activities, financial

partners, BoP Financial Education Network, and the BoP Financial Education

Certificate.

 Providing access to BoP information and resources for the general public and

partners.
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The Role of Treasury’s Community Financial Access Pilot

A Community Consultant (Treasury staff) provides assistance to implement the community

initiative. At the conclusion of the pilot Treasury will share information on effective

practices. The pilot is designed to build local capacity to continue the initiative even after the

end of the pilot.

 The Community Consultant will assess community needs, facilitate partnerships,

work with local organizations to develop and/or identify appropriate financial

products, and implement financial education services.

 The Community Consultant also provides access to Treasury’s research, knowledge of

other similar initiatives, and referrals to other public and private sector expertise and

programs.

 Treasury’s involvement is expected to run through the end of 2009.

The Role of the Financial Institutions

The financial institutions play a crucial role in providing access to available no-cost and

low-cost financial products and services to the low-to-moderate income unbanked and

under banked consumers in Philadelphia. Their role consists of the following:

 Offer no-cost or low-cost accounts and other appropriate financial products

and services to the unbanked.

 Institute internal controls and code(s) for tracking BoP accounts and report BoP

accounts opened on a quarterly basis.

 Train staff on goals of BoP and internal processes for assisting consumers who

are interested in opening a BoP account.

 Designate a lead BoP contact.

 Promote BoP by posting available marketing materials in local branches.

 Encourage staff to promote BoP when appropriate.

 Participate in special onsite or community outreach events when available and

appropriate.

 Encourage the offering of staff or consumer incentives for opening BoP

accounts when possible and available.

 Encourage community partners to support and promote BoP with their

constituents.

 Connect potential Fresh Start account holders with participating financial

education providers. .

 Promote and highlight BoP activities and participation in newsletters, internal

bulletins, and website as appropriate.

 Submit articles and notice of special account opening events to the City

Controller’s Office for posting on the BoP website.
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The Role of the Community Partners

The Community Partners also play a crucial role in helping consumers access a

mainstream institution and financial education. They are in the best position to rally

the community by giving consumers the information they need to access the

mainstream financial institutions and access available mainstream financial products

and services. The Community Partners are the direct link for the consumers to the

mainstream financial institutions. As the pillars in the community they are trusted by

potential account holders. Their role consists of the following:

 Train program staff on BoP goals and opportunities.

 Institute financial access as extension of current and future programs.

 Identify an ‘average monthly’ number of BoP accounts opened by clients.

 Incorporate account performance measures within existing programs and

services.

 Offer incentives to staff to plan onsite account opening events and activities.

 Train staff on participating financial institutions and available products and

services for referral to clients.

 Offer incentives to clients, when appropriate, to open BoP accounts.

 Institute internal controls for tracking BoP performance measures and report

referrals to accounts and other BoP activities as appropriate on a quarterly

basis.

 Become acquainted with local banks and credit unions.

 Provide information to clients on BoP available products and services.

 Encourage clients to open a checking and savings account, especially using

direct deposit. Saving as little as $10 or $20 per pay period will assist them

establish an emergency fund and reduce interest or need for a pay-day loan.

 Plan special account opening events when possible and appropriate.

 Direct staff and clients to BoP website for resources and information on the

initiative.

 Engage community network and existing partners to help promote BoP and

direct clients to participating financial institutions.

 Identify key contact for BoP participation and to inform staff on BoP activities.

 Direct potential Fresh Start account holders to participating financial education

providers and participating financial institutions, so that they may be able to

open an account.

 Promote and highlight BoP activities and participation in local newsletters,

program bulletins, organization’s website, local newspapers, and in Public

Service Announcements.

 Submit articles and notice of special account opening events to the City

Controller’s Office for posting on the BoP website.

Note: Ideally, community partners will refer 7-8 program participants monthly to open

accounts in order for BoP to reach its goal of 10,000 accounts opened by December

2009.
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Financial Products and Services

A catalogue outlining the financial products and financial services offered by BoP

participating financial institutions is available at www.philadelphiacontroller.org/bop.

Individuals and organizations can download the catalogue to review the available

financial accounts and financial services offered by the financial institutions

participating in BoP. A matrix summarizing the financial products and financial services

included in the front of the catalogue. BoP provides consumers equal access to the

available financial products and services:

BoP Financial Institutions

 American Heritage Federal Credit Union

 Citibank

 Fox Chase Bank

 Freedom Credit Union

 Philadelphia Federal Credit Union

 PNC Bank

 TruMark Financial Credit Union

 United Bank of Philadelphia

 Wachovia

Note: It is recommended for BoP partners to promote both checking and savings accounts to

individuals.

BoP Available Financial Products

 Free Checking or Low monthly Fee Checking

 No monthly Balance Checking

 No-cost or Low fee Savings Account

 Youth Accounts

 Minimum Deposit Savings Account

 Better Choice Loan Program

 Fresh Start Account (Second Chance account)

BoP Available Financial Services

 Direct Deposit

 Online Banking and Online Bill Payment

 One Waiver of NSF/OD per year

 Checking Account Linked to Savings Account

 Incentives with Savings Accounts

 Overseas and Domestic Wire Transfers

 Debit/ATM Card

 Safety Deposit Boxes

 Spanish Language Service
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Note: Direct deposit is the best way for individuals to save and build their savings!

The Better Choice Loan Program

 The Credit Union Better Choice is a short-term installment loan with a maximum

term of 90 days.

 Maximum Loan proceeds are $500.

 Available to credit union members including current members or anyone

eligible to join the credit union. (Credit Unions may have other membership

and/or financial education requirements.)

 Credit union reviews application and makes a loan decision without reviewing

member’s credit score or past credit history.

 Loan payments are calculated based on either weekly, bi-weekly or monthly

installments.

 No rollovers and no additional loans are permitted until the first loan is paid off.

 Credit union offers financial counseling to members in house or through a thirdparty provider.

 A maximum application fee of $25 may be charged. This fee can be paid in

advance or financed as part of the loan balance.

 Loan interest to be calculated at a maximum rate of 18% APR.

 Participating credit unions may establish lower fees or interest rates.

 At disbursement, an amount equal to 10% of the requested loan amount will be

deposited into a savings account in the member’s name. This amount is added

to the loan balance. The member cannot withdraw any portion of this deposit

or close the account until the loan is paid in full.

 The interest the member pays on the additional 10% of the loan is rebated to the

member’s savings account upon payoff.

 Any balance in the savings account may be offset, if the credit union writes off

the loan.

Better Choice vs. Payday Lending

Credit Union Better Choice

$500 for 90 Days

Payday Lending

$500 for 90 Days

18% APR

$25 Application Fee

Fees and Interest equal to

$15 per $100 borrowed every

14 days

Total cost after rebate:

$40.09

Total cost for 90 days:

$450

Amount in Savings Account:

$52.25

Amount in Savings Account:

$0
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Financial Education

A catalogue outlining the participating partners in the BoP Financial Education

Network is available at www.philadelphiacontroller.org/bop. The catalog provides a

listing of financial education providers and classes under BoP for consumers needing a

Fresh Start Account (Second Chance Account) and individuals interested in enhancing

their competencies and knowledge in budgeting, account management, savings, and

general financial management.

The financial education providers under this network all are considered BoP accepted

providers and the class sessions will meet the following recommended guidelines:

 Sessions are 1 1⁄2 hours to 2 hours in length.

 Course content includes budgeting, account management, savings, and

general financial management.

 All participants are given a pre-test and post-test to measure knowledge

gained.

 Participants will receive a Bank on Philadelphia Financial Education

Certificate or PNC Financial Education Certificate of completion to open a

Fresh Start Account (at participating financial institutions only).

 The BoP Certificate and PNC Certificate is accepted at all financial

institutions offering a Fresh Start account. (PNC Bank will only accept the

PNC Certificate to open a Fresh Start account.)

Planning for Onsite Account Opening Activities

BoP financial institutions are interested in collaborating with community partners to host

account opening special events at local community centers to encourage community

residents to open accounts and establish relationships with the financial institutions in

familiar and trusting settings. The guidance and assistance provided by the community

partner staff helps to increase trust and encourage participation.

Onsite activities may be planned at a designated financial institution branch as well.

Community partners and financial institutions may plan a “field trip” and accompany clients

to the financial institution. This enables clients to develop trust and confidence in entering a

mainstream financial institution. It also helps them become familiar with a new environment

and build a relationship with that particular bank or credit union.

In planning onsite account activities, community partners need to take the following factors

into consideration for planning their event to ensure a successful and encouraging

experience for the account holder and the participating BoP financial institution:

 Contact a local BoP bank or credit union to coordinate location and time for account

opening activity.

 Plan event in accordance with availability of the BoP financial institution.

 Promote account opening activity to clients.
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 Prepare clients to open accounts by ensuring that they have the accepted

identification for that particular financial institution.

 Inform clients of the available financial products and services available to them by the

prospective bank or credit union.

 Confirm number of committed potential account openers and share information with

the partnering bank or credit union.

 Have the clients complete the referral card before the event and provide to bank or

credit union.

Marketing and Promotional Tool Kit

A set of marketing materials were developed by the partners to promote BoP. A limited

amount of the marketing materials will be available for the initial launch. Since BoP is a nonfunded initiative, it is essential that BoP partners assist with the printing of the marketing

materials.

Note: Word of mouth from satisfied clients/customers is the best marketing strategy! The best

promoters for BoP accounts and to help other unbanked individuals get banked will be the new

account holders.

Electronic (PDF) versions of the marketing materials are available at

http://www.philadelphiacontroller.org/bop/default.htm.

Brochure Tri-fold provides overview of the BoP initiative. Use to engage network

and othe partners.

Referral Card

(also available in

Spanish)

Handout to consumers about BoP. Encourage consumers to fill in the

card and bring to a participating bank or credit union. The card will help

ensure they get friendly service from the financial institution, and helps

the financial institution track BoP participants and partners.

Poster Post at financial institution or community partner to create general

awareness about BoP. You may post it where clients receive

services/classes and where employees can see it.

Static Sticker Post on the doors or windows of financial institutions to identify them as

participating in BoP.

Notepad Stand-up display provided to participating financial institutions.

Contains tear-off referral cards for tellers/staff to give to account

holders to refer a friend or relative.
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Data Collection

Performance measures developed by BoP will be tracked and analyzed to ensure the initiative

is on-track and achieving its designated goals and results. The data collection form will be

available on the BoP website: http://www.philadelphiacontroller.org/bop/res.htm for

partners to download and complete.

The Pennsylvania Office of Financial Education (PAOFE) has agreed to collect and aggregate

the data for Treasury. The data reporting dates are below. A quarterly update on the data

collection and BoP’s progress will be provided to partners.

Reporting Period Requirements

Period Ending: Reporting Due Date:

June 30, 2009 July 10, 2009

September 30, 2009 October 10, 2009

December 31, 2009 January 10, 2010

Data Collection Contact

Holly A. Chase

Financial Education Specialist

Pennsylvania Office of Financial Education

17 N. Second Street, 13th Fl. | Harrisburg, PA 17101

Phone: 717-783-2498

hollychase@state.pa.us

Bank on Philadelphia Coordinators

Kent Reichert

Director, Financial and Policy Analysis

Office of the Controller

City of Philadelphia

1230 Municipal Services Building

1401 JFK Blvd.

Phila., PA 19102-1679

(215) 686-6680

kent.reichert@phila.gov

Sonia E. Klukas

Community Consultant

Office of Financial Education

U.S. Department of the Treasury

1500 Pennsylvania Ave. NW, Rm 1414

Washington, DC 20220

202-622-8355

Sonia.Klukas@do.treas.gov
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Bank on Philadelphia Partners

ACHIEVEability

African American Chamber of Commerce

American Heritage Federal Credit Union

Campaign for Working Families

Catholic Social Services

Citibank

Consumer Credit Counseling Services of Delaware Valley

Empowerment Group

Federal Reserve Bank of Philadelphia

Financial Freedom Network

Freedom Credit Union

GIM Associates LLC

Greater Philadelphia Urban Affairs Coalition

Lancaster Avenue Business Association

Mariana Bracetti Academy Charter School

Mt. Tabor CEED

Operation HOPE

PA Credit Union Association

PA Office of Financial Education

Philadelphia City Controller

Philadelphia Federal Credit Union

Philadelphia Workforce Development Corporation

Phillips Temple Christian Methodist Church

PNC Bank, N.A.

School District of Philadelphia

The Enterprise Center CDC

U.S. Attorney's Office

U.S. Dept. of Labor - Women's Bureau

U.S. Treasury

United Bank of Philadelphia

United Way of Southeastern Pennsylvania

Wachovia

Philadelphia Weed & Seed Project

West Philadelphia Financial Services