WEST PALM BEACH, Fla. – Credit unions haven't had muchcompetition when it comes to financial literacy programs from theirbanking counter parts, but it appears banks are trying to step uptheir efforts. Considering recent announcements from such bankinggiants as Citigroup and Bank of America it seems bankers may bejockeying to position themselves as “the” financial educationresource for consumers and a community “investor”. Bank of AmericaCharitable Investments has recently launched a two-year, $15million program called the Neighborhood Excellence Initiative, “torecognize, nurture and reward organizations, local heroes andstudent leaders – in 30 of the bank's major communities across thecountry – that are helping rebuild and revitalize theirneighborhoods.” “To help these communities succeed, we had to lookbeyond the, `one size fits all approach,' and develop a programthat supports and nurtures the various stakeholders that togethermake their neighborhoods vibrant and successful,” said AndrewPlepler, president of the Bank of America Charitable Foundation.The Neighborhood Excellence Initiative is composed of threeprograms: Neighborhood Builders, which provides $200,000 in grantfunding and leadership training over the course of two years to twoneighborhood nonprofit organizations working to promote vibrantneighborhoods; Local Heroes, which recognizes and honors fivecommunity heroes per year in each of the 30 selected communitieswhose achievements and leadership on local issues contributessignificantly to neighborhood vitality. Recipients will be able todirect a $5,000 contribution to an eligible nonprofit of theirchoice and will be celebrated at a public ceremony; and StudentLeaders, which recognizes five high school students in their junioror senior years in each of the 30 designated communities. Tofurther their personal and educational growth, each student willparticipate in an eight-week paid summer internship with acommunity-based organization, as well as a mentorship programarranged by the bank. “It is an interesting strategy, the banks aretrying to take what credit unions do best and use it as quite thephoto opportunity,” said 20-year old brass|media President BryanSims, who publishes a financial magazine written by and for youngadults age 18 to 24. “It is time for credit unions to be even moreproactive rather than reactive especially if they are looking tomake that transition beyond baby boomer members to reachingGeneration X or Y.” In addition, Citigroup and the CitigroupFoundation have recently announced a three-pronged global financialeducation initiative citing the “growing consumer need forfinancial literacy”. The first step involves a 10-year, $200million commitment to financial education built around the theme of“knowledge is the greatest asset”. In addition, the bank has notonly created a new Citigroup Office of Financial Education but alsolaunched a global initiative designed to allow employees to takeone day off each year to support financial education and othercharitable causes. Heading the new Citigroup Office of FinancialEducation is former Jump$tart Coalition for Personal FinancialLiteracy Executive Director Dara Duguay. “Our economic futuredepends on improving the financial literacy rate, regardless ofage. You're never too young or too old to learn how to manage yourmoney,” said Duguay. “Our work will be guided by one fundamentaltruism. `When it comes to money-your money, your business's moneyor your institution's money-knowledge is your greatest asset.' ”The “ call to action” went out around the world at Citigroupfinancial-education events in Latin America, North America, Europe,the Middle East, Africa and Asia. National Youth Involvement BoardChair LeAnn Achtenberg isn't too worried about the move. Creditunions of course are leaders in financial literacy with CUNA, NAFCUand even NCUA Board members all trumpeting the cause. “First ofall, anyone contributing to financial literacy is wonderful,” saidAchtenberg. “Studies show it is still not up to par so anyone whocan improve that is fantastic. That being said, credit unions areout there every day making a difference in young peoples' lives andthey have been involved in that for a long time walking the walkand talking the talk- not because it is the `latest and greatestthing' or because it makes a great public relations statement, butbecause it is just part of who we are as a movement.” Sims sayswhat big bankers are doing right as far as targeting the youngermarket is researching their interests and teaming up with musicsharing services or AOL instant messenger for promotions. Whilecredit unions may not be able to compete on such a grand scale Simssays they can still look for partnership and cross sellingopportunities within their communities that appeal to area youngadults during various key life stages. “When I hit 18 I had creditcard offers from all these bankers and not one from my credit unionand it doesn't make any since because I'd been on their mailinglist for at least 10 years. It sounds so basic but playing upevents like heading off to college and getting that card in amember's hand before they hit campus and are bombarded in thebreezeway with bank credit card offers makes a difference,” saidSims. “And bring the parents in. I became a credit union memberbecause my dad is a member. If it weren't for my parents being partof a credit union there is no way I'd be a member because Iwouldn't know about the credit union difference. It's like the Aviscampaign `they try harder', credit unions should be aggressivelypitching what makes them stand out from their competition.”Achtenberg adds that the credit union commitment to young peopleand financial literacy makes for a long-term return on investment.A recent NYIB listserve chat finds that most credit unions believenow is the time to make a difference in a young person's life whilethey are still in a brand development stage. “Credit unions arethere to educate them about money and give them this great start inlife before they even hit that borrowing stage,” said Achtenberg.“And we are doing it but we need to share our stories and numbersso that we can continue to show Congress that credit unions aredifferent and we do believe in social responsibility. For 2002-2003credit unions reached 213,036 students and that proves we're outthere everyday not just a one-time event. We need to talk about itand it can be another tool in our warchest.”[email protected]