MADISON, Wis. -- The Filene Research Institute and the Doorway to Dreams Fund has received a grant from the Center for Financial Services Innovation to pilot an innovation aimed at increasing the savings rate among underbanked consumers.
The Prize-Linked Savings innovation works to transfer a portion of low- to moderate-income consumers' lottery and gaming expenditures to a savings product that offers the chance to win prizes and build assets.The program encourages financial education and regular savings. Filene will partner with D2D to implement the pilot in targeted Michigan credit unions from June through December 2009.
"This is a tremendous opportunity to bring a new way to save to the market," said Mark Meyer, executive director and CEO of Filene. "This grant and partnership helps us bring a Filene innovation to scale and demonstrates that credit unions can offer an exciting new path to financial security for underbanked individuals."
CFSI selected four projects from among 133 applications, according to Filene. The four grantees will receive support for projects that provide improved financial services and asset-development opportunities to underbanked consumers.The grant is part of CFSI's 2008 Nonprofit Opportunities Fund.
D2D is a Roxbury, Mass.-based not-for-profit organization that works with the financial services industry and community and public policy organizations to generate ideas, pilot test systems and programs that build awareness of the needs and potential of low-income communities. It also advocates progressive social and economic policy. The Center for Financial Services Innovation is a non-profit affiliate of ShoreBank Corp. that facilitates financial services industry efforts to serve underbanked.