Models of Alternatives to Fringe Financial Services

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Models of Alternatives to Fringe Financial
Services
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Case Studies

• Cash and Save Toronto
• Four Corners Community Savings Vancouver
• Florida Central Credit Union Tampa Bay
• Desjardins Caisses Populaire Quebec
• First American Credit Union Arizona
• The Provident Loan Society New York
• VanCity Credit Union Vancouver
• Assiniboine Credit Union (West Broadway)
  Winnipeg
• E-Money Various
• Individual Development Accounts - Winnipeg

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Cash and Save - Toronto

• Owned by the Royal Bank
• Technical and financial capacity and expertise
• Provide fringe banking for less
• Subject to shareholder demands
• Profits leave the community
• No asset building, access to credit, or
  transition to mainstream banking

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Four Corners Community Savings

• Political financial support/vulnerability
• very service oriented, no/low fees
• Innovative ID mechanism
• Fewer assaults, stolen or lost cheques, less ID
  replacement, less money to cheque-cashers, didnt
  have to cash all at once

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Observations

• Important role for a strong financial institution
• Short-term and long-term services
• (Self)-sustainability tension of meeting
  greatest needs, yet creating revenues
• Start with minimum threshold, build up instead of
  break down
• Each model is and will be somewhat unique