Office of Financial Empowerment

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OFE Presentation to the FDIC Economic Inclusion
Committee March 19, 2008 Michael Bloomberg,
Mayor Jonathan Mintz, Commissioner Cathie Mahon,
Associate Commissioner and Executive Director
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• Office of Financial Empowerment (OFE)
• Launched by Mayor Bloomberg in December 2006 as
  the first program under the Center for Economic
  Opportunity
• First local government initiative in the nation
  focused exclusively on anti-poverty and financial
  empowerment efforts for those with low incomes

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• OFE Mission
• To educate, empower and protect New Yorkers with
  low incomes so they can make the most of their
  financial resources
• Educate
• Public awareness campaigns and publications
• Financial Education Network
• Empower
• Innovative programs to help New Yorkers with low
  incomes gain access to safe financial services
  and build assets
• Protect
• Targeted enforcement and advocacy for safe
  policies and products

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• Leveraging Unique Role of City Government
• to Get People into Savings
• Targeting research on financial service gaps in
  low-income communities
• Working with financial institutions to develop
  safe and affordable products and services
• Opportunity NYC Basic Account Program
• aveNYC Club Account Pilot

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• Research Agenda
• OFE conducts primary research and secondary data
  analysis to inform programs and policies,
  dissemination of best practices, and evaluation
  of OFE programs
• OFE has put a strong focus on better
  understanding the gaps between the needs of New
  Yorkers with low incomes and current financial
  services offerings
• This work is to inform development and
  implementation of a continuum of products and
  services to meet financial services needs

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• Neighborhood Financial Services Study
  Coming Soon - April 2008
• OFE will be releasing a study in April
  highlighting findings among residents in two
  low-income New York neighborhoods
• The study examines the supply and demand for
  financial services in these two communities, and
  residents experience and perception of services
  and products
• Methods include mapping locations of financial
  service providers, analyzing available products
  and services, surveying randomly selected
  residents, and conducting focus groups

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• Developing Safe Products
• Opportunity NYC
• Launched September 2007 in partnership with eight
  financial institutions
• Safe starter account to help unbanked New Yorkers
  get banked
• ? No Minimum Balance
• ? No Monthly Fees
• ? No Overdraft
• Offers a 50 incentive for opening an account
• Almost 1400 accounts have been opened 95 of
  unbanked program participants chose the ONYC
  account over stored value card

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• aveNYC Club Account Pilot
• Unique pilot expanding the EITC Coalition
• Campaign to help New Yorkers use a portion of
• their EITC refund to build savings
• The offer is made at participating VITA sites run
  by financial institutions after a filer learns
  they will receive an EITC refund
• The initial deposit is matched 50 after one year
  by the City of New York to help savings grow (up
  to a 250 maximum)

9
42 Broadway, 8th Floor New York, NY
10004 www.nyc.gov/consumers