Partnerships for Financial Inclusion in Latin America and the Caribbean: A Catalyst for Inclusive Growth Overview of the NYC Office of Financial Empowerment (OFE) Tamara Lindsay Director of Programs NYC Office of Financial Empowerment 1

Mission of DCA To ensure that consumers and businesses benefit from a fair and vibrant marketplace. Strategic Priorities Empowering and protecting consumers. Facilitating fair business practices. Conducting efficient, accountable, and customer-friendly operations. Overview of OFE The Office of Financial Empowerment (OFE) is the first local government initiative in the nation with a mission to educate, empower, and protect New Yorkers with low incomes so they can build assets and make the most of their financial resources.

Slow economic recovery for low- and moderate- income New Yorkers Poverty rates continue to climb slowly Persistent disparities in income Many lack savings to manage any short-term needs Prevalence of predatory tricks and traps New York City Financial Landscape: Realities

Local government Many stakeholders motivated to help Focus on financial inclusion New York City Financial Landscape: Opportunities

Promising OFE Financial Empowerment Strategies Integrating Financial Counseling and Education Build local capacity to deliver standardized, high-quality services Structure integrations through city systems, funding streams, and contracts Financial Empowerment CentersProfessional Counselor TrainingCapacity Building Initiative Improving Access to Financial Services Employer-based banking Safe banking for vulnerable and underserved populations NYC Direct DepositOpportunity NYC AccountNYCSafeStart Boosting Income and Building Assets Safe and affordable tax preparation services Tax-time savings programs Tax Credit Coalition (VITA, Online, Coupon, Virtual)SaveUSAFinancial Security Credit Protecting Consumers in the Financial Services Marketplace Leveraging local enforcement authority Impact consumer financial protection policies Debt CollectionPayday Lending

Financial Empowerment Financial Counseling and Education Safe and Affordable Banking Income and Asset Building Consumer Financial Protection Research & Evaluation

The Local Government Opportunity Integration Numerous service delivery options Use Citys payment streams Scale Large numbers to serve Significant impact Sustainability Central coordination Disseminate best practices Influence policy Sustain efforts Quality Require a standard approach Data collection and analysis

Programs Research & Evaluation Policy Scale & Replication Effecting Change

Need for short-term savings with meaningful incentives to save Tax-time matched savings program Save a $200+ for a year, match up to $500 Program Understand demand and impact 4,700 accounts, 75% saved for the full year $4 million in savings Program increased savings rates and amount Research & Evaluation Enact change in the tax code Evidence to support policy efforts Replication in other cities Policy, Scale & Replication Spotlight: Tax-Time Matched Savings

Prioritize direct deposit as a critical step Work with NYCs more than 250,000 employees through payroll Partnership between City agencies Negotiate bank account terms Program Opportunity to use Citys payment stream 7,500 City employees opened accounts Introducing direct deposit through other City workforce programs Policy, Scale & Replication Spotlight: Employer-Based Banking

The OFE Timeline Phase 3: Policy and Technical Assistance Experience/LessonsScale Phase 2: Programs PilotsResearch & Evaluation Phase 1: Launch Understand Needs Promote the Financial Empowerment Concept

Tamara Lindsay 42 Broadway, New York, NY