Case Study

The Impact of Innovation – Self-Help Learning Brief

Mainstream financial institutions have struggled to meet the needs of low-income families living paycheck to paycheck.

Sunday, November 1, 2009

Mainstream financial institutions have struggled to meet the needs of low-income families living paycheck to paycheck. Alternative providers such as check-cashers and payday lenders have emerged to fill the void. Yet consumers standing in check-cashing lines have little or no opportunity to save money, establish a credit history and access affordable credit, and build assets.

The Center for Community Self-Help is creating a retail credit union employing an innovative micro-branch strategy in the California Bay Area. The micro-branch will provide a comfortable environment where consumers will find products they need and receive help to advance financially. The goal is to attract new members through transactional services (check-cashing, remittances, etc.) and transition them to account-based relationships.

The first micro-branch, in East San Jose, will open in late 2009, targeting the Latino immigrant community, particularly unbanked individuals living in the cash economy.

The Impact of Innovation – Self-Help Learning Brief

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