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Accessible Financial Services Incubator: Employer Sponsored Small Dollar Loans Resources

Developed by NorthCountry Federal Credit Union, this small dollar loan program is offered to employees of the Select Employer Groups (SEGs) partnered with credit unions. Loan payments are auto-deducted from direct deposited paychecks. Once the loan is paid, employees may continue making payments into savings accounts.

We’ll test Employer Sponsored Small Dollar Loans' viability with mainstream financial institutions during an 18-month product incubation.

Watch the Employer Sponsored Small Dollar Loans recorded webinar here.

Learn more about Employer Sponsored Small Dollar Loans with the resources listed in the right-hand column.

Read our related report on "Financial Stress and Workplace Performance: Developing Employer-Credit Union Partnerships" here.

Other products to be tested in the incubator include:

  • Borrow and Save by the National Federation of Community Development Credit Unions: A small dollar loan product that helps consumers not only pay down debt but also build savings.
  • Non-Prime Auto Lending by the National Credit Union Foundation: A program that helps lenders fairly price and manage non-prime auto loans.
  • Pay Yourself Back by Innovations in Poverty Action: A product that leverages consumers’ habits formed by regularly making loan payments to encourage savings.
  • The Trust Card by Neighborhood Trust Federal Credit Union: A credit card product that combines consolidated debt, a fair interest rate and fixed monthly payments with financial counseling.

Using credit unions as the proving ground, we'll test all five products with at least 5,000 consumers through at least 25 credit unions. The incubator will ultimately package and scale at least one product for implementation at a large, mainstream financial institution.

Tagged: 'filene research institute' 'employer sponsored income advance loan' 'northcountry federal credit union' 'accessible financial services' 'segs' 'ford foundation'

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