Only a few people ever achieve liftoff of the astronautical kind, and one of them spoke last week to the group that is turning the Filene Research Institute i3 innovation LIFT into reality.
LIFT is being tested as a way to improve repayment behavior and financial capacity. Guest speaker and astronaut Janet Kavandi, Director of Flight Crew Operations at the Johnson Space Center, spoke to Filene and five partner credit unions during the launch of this idea that provides incentives for timely loan payments. The University of Wisconsin-Madison’s Center for Financial Security will study automobile loans to 1,200 LMI consumers with subprime credit scores, with the results to be published in 2013.
The LIFT is supported by a generous grant by the Center for Financial Services Innovation (CFSI).
“It is a fantastic experience to see an i3 idea get into the field for testing,” says Denise Gabel, chief innovation officer at Filene. “The LIFT program will provide credit-challenged consumers with the help they need, while managing the inherent risk in doing so.”
Credit unions piloting LIFT during its research phase include:
- Del Norte Credit Union ($392 million, Santa Fe, NM)
- Industrial Credit Union ($144 million, Bellingham, WA)
- Innovations Federal Credit Union ($148 million, Panama City Beach, FL)
- Public Service Credit Union ($1 billion, Denver, CO)
- Vermont Federal Credit Union ($330 million, Burlington, VT)
- 1st Advantage Federal Credit Union ($540 million, Newport News, VA)
Astronaut Janet Kavandi spoke to the assembled group about her experiences in space on three different missions and about how to plan, train for, and execute a complex mission. Credit unions piloting LIFT face all of these challenges as they recruit and test this innovative loan program with more than 1,200 consumers.
The Filene i3 innovation team behind the LIFT idea comprises: Shelly Berryman, SchoolsFirst Federal Credit Union ($8.8 billion, Santa Ana, CA); Matt Henry, Elevations Credit Union ($1 billion, Boulder, CO); Jackie Edwards, Connexus Credit Union ($351 million, Wausau, WI); Mike Kenzie, Patriot Federal Credit Union ($432 million, Chambersburg, PA), and Lisa Randall, Vermont Federal Credit Union ($330 million, Burlington, VT).
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