Related Link: Recent Accomplishments

EXPANDING ACCESS TO FINANCIAL SERVICES

In 2010 Connecticut Appleseed began partnering with the Connecticut Association of Human Services (CAHS) to launch a Bank on Connecticut initiative that will help people keep more of what they earn and start on a pathway to improved financial success and self-sufficiency.

That partnership was the natural evolution of Connecticut Appleseed’s “Expanding Financial Access for Immigrants” project, for which we surveyed roughly 600 immigrants from Stamford through New Haven in early 2009.

It also capitalizes upon CAHS’ Connecticut Money School (www.ctmoney.org) network of financial education classes and programs, as well the statewide relationships that CAHS has developed in coordinating the “VITA” tax preparation assistance program.

Outreach by nonprofit community partners is critical in helping the unbanked to overcome their wariness of mainstream financial institutions. Participating nonprofit community organizations are therefore partnering with financial institutions in 5 pilot tests that progress gradually from financial education coursework for the unbanked individuals toward long-term and multi-faceted banking relationships. Pilots are underway in Stamford, Norwalk, Bridgeport, New Haven and The Valley (Derby and 3 neighboring towns), while planning continues for a Hartford pilot.

In each pilot, a participating nonprofit will refer, educate, screen and support clients entering the Bank on Connecticut program. Each nonprofit will be the referral source for new accounts into the bank branch of a collaborating financial institution, each of which has agreed to provide a non-predatory banking product that has transparent fees to the “Bank On” customer. Banks will work with the customer at the point of sale to ensure any questions about the basic checking or savings account are answered. The pilots are overseen and coordinated by a Steering Committee that is co-chaired by Connecticut Appleseed and CAHS, while CAHS will actively manage the project by handling marketing (print and website) and evaluation.

As of mid-2011, the pilots will team CTE and Citi in Stamford, NEON and Citi in Norwalk, FSW and Citi in Bridgeport, Start Bank and Junta for Progressive Action in New Haven and Webster Bank and Team, Inc. in the Valley. Planning is underway between Co-opportunity, Inc. and Bank of America toward a Hartford partnership, and a second Bridgeport pilot involving JPMorgan Chase is also possible. .