Community Financial Resources

The Challenge

Over 50% of American families live paycheck to paycheck.   About 20 million consumers have no bank account at all. But even consumers who do bank struggle with high costs for basic services that do not really meet their needs like $32 Billion in Overdraft charges in 2012.   800% APR for a two week $100 overdraft! Really?

Families that have given up on traditional banks and turn to payday lenders get charged over 400% annual interest on two week loans, which customers typically roll-over five times or more. A $255 twelve week loan costs $270 and you still owe the $255 principal. That can't be right? Payday lenders deprive families and their communities of $9.2 billion each year.  Unfortunately, these alternative financial providers (including auto title loan companies, pawn shops, rent-to-own stores, and check cashers) find their already large market growing even faster since the Great Recession.

A Better Way

Community Financial Resources connects low-income and financially fragile families with consumer-friendly banking tools that help them preserve and build wealth. How? -- by developing and sourcing market-changing financial products that offer better choices than unscrupulous alternative financial providers and high fee bank accounts. We and our partner financial service vendors leverage cost-saving technology to introduce creative products and lower prices that increase value for consumers.  These best-practice services also offer real competition to banks and alternative financial providers, pushing them to better serve low-income communities.

Wrap Around Consumer Education 

We collaborate with social service agencies, community colleges, workers centers and workforce development employers to build financial products into a financial education program that incents participants to work with financial coaches with rewards for demonstrating beneficial financial behaviors, such as direct depositing pay and benefits, automating bill payments, saving, and improving their creditworthiness.  Consumer Savvy Money Management skills are essential to poverty alleviation.

 

Insider Knowledge

With a staff  and board composed of banking industry insiders and social activists, we focus on serial product innovation and consumer awareness. CFR is unique in the field of poverty alleviation. While the financial establishment talks about moving the unbanked into mainstream banking, CFR initiates financial service innovations that satisfy the needs of low-income and transnational families.

Please support our efforts transforming banking from a market-driven commodity into a human service.