I am starting this competitive analysis with data from the FDIC study. https://www.fdic.gov/analysis/quarterly-banking-profile/fdic-quarterly/2007-vol1-2/banking-financial-edu.pdf
A Consumer Bankers Association survey, which included many of the nation’s largest
banks, found that nearly 100 percent of responding
institutions are involved in various forms of financial
education.
- Investment Performance: A bank provides direct
funding to a nonprofit organization that offers financial education training to consumers. - Lending Performance: A bank lends to low- and moderate-income financial education program participants.
- Service Performance: A bank directly conducts financial education training for low- and moderate income individuals or provides low-cost deposit accounts to these participants.
Bank financial education programs have become increasingly creative and often target consumers on the basis of their level of knowledge or specific financial need, and many incorporate other banking services. Although there is no “best method” for delivering
financial education and related support services, the following are a few common practices:
- Informal, one-on-one counseling.
- Partnering with nonprofits or local government entities to teach formal classes.
- Donating funds to schools or nonprofits for formal classes.
- Establishing mini-branches in schools.
- Hosting formal classes at bank facilities.
- Providing mobile branches that move to target communities or to employers to provide banking services or financial education.
- Translating important banking documents into the language of consumers and hiring bank employees who speak those languages.
- Providing specialized, no-account services, such as check cashing or money transmission services.
How banks are incentivizing their Money Smart program offering
- 23 percent introduce students to their institutions with a tour of their facilities. 23 percent give unique credit or loan counseling available only within the Money Smart process.
- More than one-fifth offer free checking accounts to Money Smart students.
- 19 percent offer no-minimum-deposit checking or savings accounts to Money Smart students.
The FDIC’s Money Smart curriculum and access to the computer-based instruction version are available at the FDIC’s Web site, http://www.fdic.gov/consumers/consumer/moneysmart/index.html.
The FDIC’s Money Smart curriculum and access to the computer-based instruction version are available at the FDIC’s Web site, http://www.fdic.gov/consumers/consumer/moneysmart/index.html.
FDIC Consumer News (http://www.fdic.gov/consumers/consumer/news/index.html) provides
practical guidance for consumers on how to use financial services. Each issue offers helpful hints, quick tips, and commonsense strategies to protect and stretch a consumer’s paycheck.
The United States Financial Literacy and Education Commission (http://www.treas.gov/offices/domesticfinance/financial-institution/fin-education/commission/) created MyMoney.gov (http://www.mymoney.gov/), the U.S. government’s Web site dedicated to teaching the basics of financial education. The site contains information from 20 federal agencies involved in financial education efforts, including the FDIC.
America Saves (http://www.americasaves.org/) is a nationwide campaign to help individuals and families save and build wealth.
The Federal Reserve System’s education Website links to instructional materials and tools to increase understanding of the Federal Reserve, economics, and financial education (http://www.federalreserveeducation.org/). In addition, the Federal Reserve Bank of Chicago hosts the Financial Education Research Center, part of the Consumer and Economic Development Research and Information Center (http://chicagofed.org/cedric/financial_education_research_center.cfm). Other online resources are available for researchers, educators, and program directors interested in supporting these types of programs and initiatives.
The Office of the Comptroller of the Currency has developed a Financial Literacy Resource Directory that provides descriptions and contact information for a sampling of organizations that have undertaken financial literacy initiatives (http://www.occ.treas.gov/cdd/finlitresdir.htm).
Jump$tart Coalition for Personal Financial Literacy (www.jumpstartcoalition.org) is a national coalition of organizations dedicated to improving the financial literacy of kindergarten through college-age youth. The coalition provides advocacy, research, standards, and educational resources.
