OFE Presentation to the 

FDIC Economic Inclusion Committee

March 19, 2008

Michael Bloomberg, Mayor

Jonathan Mintz, Commissioner

Cathie Mahon, Associate Commissioner and Executive Director

Office of Financial Empowerment (OFE)

Launched by Mayor Bloomberg in December 2006 as the first program under the Center for Economic Opportunity

First local government initiative in the nation focused exclusively on anti-poverty and financial empowerment efforts for those with low incomes

OFE Mission

“To educate, empower and protect New Yorkers with low incomes so they can make the most of their financial resources”

Educate

Public awareness campaigns and publications

Financial Education Network

Empower

Innovative programs to help New Yorkers with low incomes gain access to safe financial services and build assets

Protect

Targeted enforcement and advocacy for safe policies and products

Leveraging Unique Role of City Government

to Get People into Savings
        - Targeting research on financial service gaps in                low-income communities
        - Working with financial institutions to develop safe and affordable products and services
        - Opportunity NYC Basic Account Program		      
        - $aveNYC Club Account Pilot

Research Agenda
        - OFE conducts primary research and secondary data analysis to inform programs and policies, dissemination of best practices, and evaluation of OFE programs
        - OFE has put a strong focus on better understanding the gaps between the needs of New Yorkers with low incomes and current financial services offerings 
        - This work is to inform development and implementation of a continuum of products and services to meet financial services needs

Neighborhood Financial Services Study        Coming Soon - April 2008
        - OFE will be releasing a study in April highlighting findings among residents in two low-income New York neighborhoods
        - The study examines the supply and demand for financial services in these two communities, and residents’ experience and perception of services and products
        - Methods include mapping locations of financial service providers, analyzing available products and services, surveying randomly selected residents, and conducting focus groups

Note that comprehensive briefing will be conducted with release and we would like to invite anyone interested in the hearing the full results to contact us for an invitation to the briefing.

Developing Safe Products:  

Opportunity NYC
        - Launched September 2007 in partnership with eight                        financial institutions
        - Safe starter account to help unbanked New Yorkers                               get “banked”

		▫ No Minimum Balance

		▫ No Monthly Fees

		▫ No Overdraft
        - Offers a $50 incentive for opening an account
        - Almost 1400 accounts have been opened; 95% of unbanked program participants chose the ONYC account over stored value card

Tracking account activity through FI’s: Preliminary reports indicate that 99% of accounts are still open after 3-4 months and average daily balance is $200. 

$aveNYC Club Account Pilot
        - Unique pilot expanding the EITC Coalition 

	Campaign to help New Yorkers use a portion of 

     their EITC refund to build savings
        - The offer is made at participating VITA sites run by financial institutions after a filer learns they will receive an EITC refund
        - The initial deposit is matched 50% after one year by the City of New York to help savings grow (up to a $250 maximum)

Preliminary data indicates that people are contributing, on average, $380 – meaning that they’re saving an average of $570 with the match. Just under 1⁄2 are taking up at the maximum match ($500) Opened over 100 accounts to date; will be closely monitoring over next 12 months

42 Broadway, 8th Floor 

New York, NY 10004

www.nyc.gov/consumers