Credit unions all over the world are innovating and you can, too. We're hosting free Webinars in June to show how three Filene i3 innovations: MatriMoney, Savings Revolution, and Prize-Based Savings have worked in other credit unions and how they can work in yours, too. If you have read this blog before, than you have already read about some of the great things that credit unions are doing with these three projects. Come here why they are successful and what your credit union can do.
You can register for the Webinars by emailing me at kentsugg@filene.org. Send me an email with your name, credit union, and session that you'd like to attend. Do it today because space is limited.
June 6th at 10:30
June 9th at 2:30
June 11th at 10:30
Showing posts with label Prize Based Savings. Show all posts
Showing posts with label Prize Based Savings. Show all posts
Tuesday, May 27, 2008
Thursday, April 17, 2008
"The Prize is Right"
WEOKIE CU in Oklahoma City, implemented an awesome Prize-Based Savings Account on April 1.
There new program simply enhances their basic membership savings account. All members already qualify. To gain an entry the member must add an additional $50 to the average daily balance during the month. They are giving away a total for $5000 to 30 winners each month. This program is an excellent way to give back to their members as well as get members to save more money each month. For members of WEOKIE, there is no reason why they shouldn't deposit at least $50 which can be done via automatic transfer or any number of ways.
Again congrats to Weokie on such a great job implementing the idea. Based on their structure I think the success of the product will be great.
There new program simply enhances their basic membership savings account. All members already qualify. To gain an entry the member must add an additional $50 to the average daily balance during the month. They are giving away a total for $5000 to 30 winners each month. This program is an excellent way to give back to their members as well as get members to save more money each month. For members of WEOKIE, there is no reason why they shouldn't deposit at least $50 which can be done via automatic transfer or any number of ways.
Again congrats to Weokie on such a great job implementing the idea. Based on their structure I think the success of the product will be great.
Friday, March 7, 2008
Chance at Large Prize or a Garunteed Small Prize
Which do you and/or your CU prefer for a Prize-Linked Savings account??
As we continue to develop the Prize-Linked Savings (PLS) concept, we are looking at two different avenues for the prize. I want to know which is better in your opinion, which appeals to you more, and if you represent a CU, which will most appeal to your membership?
***Not sure what a PLS is? Let me give you the basis of the PLS in one 3 short sentences. PLS is the idea that members are more likely to save money if they are given a chance to win a prizes and/or a large cash prize. For every (insert $ amt. here) they deposit to their PLS they get an entry into the drawing for the prizes for that month, quarter, and year. Okay now back to my question...
The first (traditional) construct of the product, is to have monthly prizes of vary value that range from several at $20, $50, $100, and even one at $1000. Of course in many cases, prizes such as iPods, TVs, etc., fill in for cash prizes. Then there is a larger quarterly prize, and an annual prize of $10k to $15k, depending on the CU. This prize is guaranteed and will be given away to one lucky member.
The second construct is a chance at a much larger prize. Say for each entry the member has a 1 in 1 million chance at winning $100k at the end of the year. This prize is not only non-guaranteed but the chance of someone/anyone winning it is very small. In addition to this large non-guaranteed prize they will also be able to similar monthly prizes as in the traditional construct.
So the main difference is that the CU can either give a member $10k or they can underwrite a chance to win $100k. So which do you prefer, if there will be smaller prizes won, would you rather play and be guaranteed that someone would get the $10k, or would you rather play and know that you have a chance to win $100k, an amount that most likely will not be given to anyone.
Which do you prefer? Which is a better fit for your CU? Which would your membership prefer? Thanks for the insight.
P.S. Your opinion could have an impact on how this product develops in the future.
Friday, January 25, 2008
Prize Based Savings
It's not Gambling because there is nothing to lose
The Filene i3 group has an innovative idea that Credit Unions can encourage non-traditional savers to do just that SAVE. Well we are going to appeal to motives that usually cost someone money, not teach them to save it. The idea of a Prize Based Savings appeals to people who gamble or play the lottery, but it has absolutely nothing do with that.
A 2005 survey commissioned by the Consumer Federation of America (CFA) and the Financial Planning Association® (FPA) discovered that nearly 40% of low-income earners think it is more practical for them to accumulate significant savings by winning the lottery than by actually following a systematic plan for saving. Seriously if this isn’t an opportunity then I don’t know what is.
The Prize Based Savings can be developed many different ways, but the basics of it, is for every (insert amount of $) deposit a member makes they will get an entry for a monthly, quarterly, and/or yearly prize. This will encourage them to save because they have a much better chance to win at this than they do to win the lottery. But the key is that it teaches them to save money. Something that they likely were unable to do before.
There are a few different versions currently on the market: FORUM CU’s Weekly 5 Club, Neighborhood CU’s Prize Savings Account, and Centra CU’s Super Savings. All of which are tweeked differently to work best for their memberships.
As Credit Unions our job is to provide the best products and services to our members at the lowest cost. We do a great job. People all over the world find it impossible to save, as a Credit Union we need to do what we can to encourage and teach our members to save so that they are prepared for life’s challenges. This is a way that CU’s can do just that.
The Filene i3 group has an innovative idea that Credit Unions can encourage non-traditional savers to do just that SAVE. Well we are going to appeal to motives that usually cost someone money, not teach them to save it. The idea of a Prize Based Savings appeals to people who gamble or play the lottery, but it has absolutely nothing do with that.
A 2005 survey commissioned by the Consumer Federation of America (CFA) and the Financial Planning Association® (FPA) discovered that nearly 40% of low-income earners think it is more practical for them to accumulate significant savings by winning the lottery than by actually following a systematic plan for saving. Seriously if this isn’t an opportunity then I don’t know what is.
The Prize Based Savings can be developed many different ways, but the basics of it, is for every (insert amount of $) deposit a member makes they will get an entry for a monthly, quarterly, and/or yearly prize. This will encourage them to save because they have a much better chance to win at this than they do to win the lottery. But the key is that it teaches them to save money. Something that they likely were unable to do before.
There are a few different versions currently on the market: FORUM CU’s Weekly 5 Club, Neighborhood CU’s Prize Savings Account, and Centra CU’s Super Savings. All of which are tweeked differently to work best for their memberships.
As Credit Unions our job is to provide the best products and services to our members at the lowest cost. We do a great job. People all over the world find it impossible to save, as a Credit Union we need to do what we can to encourage and teach our members to save so that they are prepared for life’s challenges. This is a way that CU’s can do just that.
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