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Financial Elder Abuse

Keeping Baby Boomers Financially Secure

How and why financial institutions can help

As the baby boomer population quickly becomes the largest senior demographic in American history, there is a growing concern about keeping their hard-earned investments safe. According to a recent report, the U.S. senior community loses an astonishing $53 billion annually to both fraudulent and deceptive practices.[1] This type of preying on the elderly is known as “elder financial abuse,” and financial institutions are in the perfect position to help. First, let’s look at the three types of financial elder abuse:

  • Financial Exploitation
    This type of exploitation is legal but highly unethical, and consists of deceiving or convincing seniors to make poor financial decisions or give their money away.
  • Criminal Fraud
    This type of activity is clearly illegal, and includes identity theft and mail fraud.
  • Caregiver Abuse
    This refers to financial theft or deception by someone trusted—whether it be a family member, healthcare worker, or even a financial manager.

How banks and credit unions can help

As institutions that have built long-term relationships with seniors and their children, banks and credit unions are perfectly positioned to help stem the tide of financial elder abuse. But how to do so? Financial education is a big part of the solution. Both elders and their caregivers feel confident that the information they receive from their bank or credit union is both honest and understandable—but getting the information to them can be a challenge.

In the digital age, where some seniors may be housebound but accustomed to surfing the Web, while others might feel more comfortable visiting their local branch, financial education must be a two-pronged approach. The first prong includes providing digital programming that can be accessed by boomers and their children—anywhere, anytime. The second prong focuses on the branch level, and includes training employees and providing relevant print materials. As the baby boomers age, the problem of financial elder abuse is not going to go away.

[1] Study: The True Link Report on Elder Financial Abuse 2015 Executive Summary. (January, 2015). Retrieved January 20, 2017, from https://www.truelinkfinancial.com/news/true-link-releases-latest-elder-financial-abuse-findings-losses-discovered-to-be-much-worse-than-originally-thought

Financial Education Program Online

4 Elements of an Effective Financial Education Program

Young Adult at Computer

Recent studies have shown that young people are growing up without adequate financial education, and banks, credit unions, and employers have been stepping in to fill this gap. But as a corporation or financial institution, how can you be sure that the financial education program you choose is an effective one? Fortunately, the Consumer Financial Protection Bureau (CFPB) has laid out guidelines for what makes an effective financial education program.[1] Here’s what to look for:

  1. Content
    How strong is the content of the program, and what topics does the program cover? Ideally, a financial education program should cover a wide range of topics, including spending, saving, investing, credit, and money management. Also look for programs that speak to different life stages and employ age-appropriate methods and technologies.
  2. Utility
    Is the program easy to use—for both students and administrators? Is it available in other languages? Look for programs that can be accessed by multiple demographics and age groups, and on a range of devices, including computers, phones, and tablets.
  3. Quality
    Explore the quality of the program. How deep is the subject matter? Where are the facts coming from? And is it based on the most recent research in the field?
  4. Efficacy
    Perhaps most importantly, how do you know that the program is effective? A reputable financial education program should be able to demonstrate that students’ knowledge increases after taking the course. Look for programs that not only measure and document student progress, but also can show success after doing so in the past.

There are many financial education programs available in the marketplace, but not all of them are created equal. When you’re evaluating a new program, these four critical elements will ensure that you’re getting your money’s worth.

[1] Report from the Consumer Financial Protection Bureau: Youth Financial Education Curriculum Review. (October 2015). Retrieved January 27, 2017, from http://files.consumerfinance.gov/f/201509_cfpb_youth-financialeducation-curriculum-review.pdf

University of Kentucky Federal Credit Union Case Study

UKFCU: Boosting Member Financial Wellness with Digital Financial Education

As a member-owned financial cooperative, the University of Kentucky Federal Credit Union has an especially vested interest in their members’ financial decision making. Understanding that financial education technology could make a big difference for their members, they tapped into EverFi’s expertise to design digital financial education courses and implement a large-scale outreach initiative.

How the U. of Kentucky Credit Union launched an incentivized digital financial education program that boosted engagement and promoted auto loan sales.

Download EverFi’s case study, Driving Member Wellness Through Online Education: The University of Kentucky Federal Credit Union

With EverFi’s digital financial education training modules, the University of Kentucky Federal Credit Union was able to offer accessible financial education without taxing their limited staff resources. And, as an incentive for members to participate, they decided to offer a quarter-point interest rate discount on a new auto loan for any member who completed four training modules. This reward not only boosted participation, but it also had the added bonus of helping to promote auto loan sales.

The program proved to be hugely successful, with more than a third of the visitors to the credit union’s website taking time to engage with the auto loan discount program. Among members who registered for the program, 87 percent completed at least one module, with 37 percent completing the entire program.

The online education content has also helped the University of Kentucky Federal Credit Union improve their digital presence and connect with hard-to-reach millennial members. Thanks to their partnership with EverFi, they’ve found a solution to member financial wellness where truly everyone wins.

To learn more about how the University of Kentucky improved member financial wellness and their digital financial marketing strategy with EverFi, read Driving Member Wellness Through Online Education: The University of Kentucky Federal Credit Union.