New York Region
FDIC Community Affairs staff in the New York
Region are focusing on three targeted geographic markets: Baltimore, MD;
Formed in May 1, 2007, the Baltimore Alliance of Economic Inclusion has over 20 active members across various financial and community based organizations. In 2009, the Baltimore AEI successfully developed the Borrow and Save Program, a model small dollar loan program that offers short-term, small dollar loans at below competitive market interest rates to low-to moderate-income consumers, primarily located in the Southeast neighborhoods of Baltimore City. Beyond lower interest rates, the program also features a savings component with matching dollars to encourage good saving habits, and a financial literacy program to promote financial education. The program has helped consumers of Baltimore build good saving habits, establish credit history, obtain personal financial education, transition from higher cost to lower cost loans and improve their credit risk profiles. Since the launch of the program in 2009, over 1,535 consumers have been reached through the program's financial education component and more than 423 new bank accounts have been opened. Since the Borrow and Save Program is still in its infancy, FDIC staff will continue to provide the needed technical and professional support to the Baltimore market. FDIC hopes to develop the program into a sustainable revolving loan program supported by local banks and credit unions as the program expands each reach.
Wilmington, DE The Wilmington AEI was launched on May 16, 2007, and currently has over 88 members comprised of stakeholders from various community-and faith-based organizations, financial institutions and local government. Members joined either or both of two task- based working groups which consisted of Products and Services with a Marketing Component and; Education with a Marketing Component. These workgroups focused on meeting the needs of the underserved and underbanked community in Wilmington through focusing on the growing foreclosure crisis in Delaware. To address this crisis, the coalition implemented projects consisting of bank surveys; consumer surveys; a series of consumer focus groups and; an analysis of the Wilmington demographics.
The outcome of these projects led to the adoption of a successful Boston model for the Wilmington AEI Post-Foreclosure/Foreclosure Prevention initiative. The adoption of this initiative resulted in the formation of a new 9-member task-based Committee which includes: Discover Bank; Citicorp Trust Bank; PNC Bank Delaware; the Delaware Banking Commissioner's Office; the US Department of Housing; Interfaith Community Housing of Delaware and other organizations. This initiative has advanced into third-quarter 2012, capturing the interest of a number of additional banks operating in Delaware.
Since the launch of the Wilmington AEI Coalition in 2007, the work of these committees and other AEI supporters has helped to advance AEI initiatives in Wilmington. Over 951 Small Dollar Loans have been granted; over 660 bank accounts have been opened and; over 180 consumers have been reached through financial education. In order to ensure the ongoing success of the AEI, FDIC will continue to provide staff time and commitment of resources as well as encourage existing members to maintain their active roles in task-based working groups.
The Rochester AEI was launched on May 15, 2008. The two task-based working groups are fully engaged in program activities. The Asset Building Products and Services Working Group is identifying features, benefits and opportunities for three products: a checking account, savings account and a small dollar loan product to meet the needs of the unbanked and the underbanked in Rochester. The Marketing, Promotion and Program Assessment Working Group is developing a strategy to create awareness and access for these products. The working groups are led by volunteer co-facilitators from community-based organizations with support from FDIC.