The Financial Capability Innovation Funds, managed by CFSI, supports promising nonprofit-led projects designed to help consumers better manage their finances and achieve financial prosperity. Having provided $4 million total in grant support, the Funds focus on projects that spur positive behavioral change and measurable outcomes for low-income, and financially underserved consumers. Examples of the result include improved credit scores, increased savings, or avoidance of unnecessary transaction fees.
Financial Capability Innovation Fund II
In 2012, CFSI selected eight cutting-edge projects to receive a total of $2.5 million in grant support from among 127 applications totaling more than $40 million in requests. The grantees were:
- Center for Community Self-Help is testing underwriting models and behavioral design features with small-dollar credit products.
- Doorways to Dream Fund is employing “gamification” mechanics on a national scale to encourage positive savings behaviors.
- Juma is developing a Facebook application and mobile alert system to supplement their college savings program for high school youth.
- Mission Economic Development Agency is offering secured cards at tax time and using text messages to encourage responsible use.
- Mission SF is leveraging technology, the power of peers, and behavioral economics to integrate a scalable savings-focused financial capability model into municipal employment programs for youth and young adults.
- Moneythink, in partnership with IDEO.org, is developing a mobile application to support savings behavior and supplement a financial mentoring program between college and high-school students.
- The National League of Cities Institute is offering financial coaching and repayment supports for households behind on utility bills.
- Neighborhood Trust is partnering with employers through their new program, PayGoal, to allocate a portion of employees’ wages toward their financial goals and communicate progress toward these goals as part of every paycheck.
Read more at CFSInnovation.com