After months of preparations, a community financial jewel will again shine from Saint Paul’s historic Old Swedish Bank Building at 965 Payne Avenue. On Monday, January 14, the new Eastside Financial Center will open its doors, offering a unique combination of affordable financial products with financial education and counseling programs.
While the center is designed to meet the financial needs of all East Side residents, special attention has been given to include services and programs for unbanked and underserved individuals. The goal of the center? To help East Side residents learn, save and prosper.
“Our model for delivering products and services is like no other in the Twin Cities,” said May Xiong, director of the center. “We welcome all people who have a desire to better their financial position.”
This center is the result of an alliance among US Federal Credit Union, Lutheran Social Service of Minnesota (LSS) and Thrivent Financial for Lutherans, and each organization’s expertise in financial services is reflected in the Center.
The center will combine credit union products—such as checking and savings accounts, consumer loans and mortgage services—with financial education programs, debt and credit counseling services as well as offer and host individual development accounts (a matched savings program).
A Collaborative Effort
US Federal Credit Union will establish and operate a branch within the center, offering their full menu of products complemented by specific services designed to meet the needs of the local neighborhood. These include check cashing, bill payment, remittance services and access to an affordable short-term emergency loan product.
LSS will serve as the center’s managing partner, responsible for the overall planning, staffing and operations of the center’s financial education, counseling and mentoring programs.
Thrivent Financial created the concept and launched a similar center in Chicago. It has contributed more than $2.1 million to fund various start-up and operational costs, and the organization committed funds for the Center’s individual development account (IDA) program. Earlier this summer, the U.S. Department of Health and Human Services approved a $470,588 grant to match the private funding committed to the IDA program by Thrivent Financial.
The “Payne-Phalen Saves 3:1” program will enable low- to moderate-income individuals and families to have their savings matched on a three-to-one basis. Every dollar a qualifying individual saves – up to a maximum of $1,333 – will be matched with three dollars from Thrivent Financial and the Federal Government to be used for a first home purchase, small business development or financing a post-secondary education, up to a combined total of $5,333. Participants can remain in the program from six to 24 months.
Program participants will be required to take a financial education course totaling nine hours over a six-week period offered at the EFC, and will also benefit from financial counseling provided by LSS.
“Building financial assets is the key to financial stability,” said Carol Birkland, Thrivent Financial program developer who oversees Thrivent Financial’s participation in the alliance. “Our experience with other IDA programs in Chicago and Minneapolis tell us that the right mix of education and incentives help families establish a strong financial foundation.”
A Working-Class Neighborhood
According to Xiong, most families living in Saint Paul’s East Side have self-supporting but modest incomes. Some, however, are not part of the financial mainstream. Xiong notes that the center will offer transportation, childcare and language services to neighborhood residents participating in the IDA program to help working families grow and manage their money.
The center will also employ people from the neighborhood and be sensitive to the rich ethnic and cultural diversity found there. Assets invested in the center will stay in the neighborhood and work to build prosperity and enhance community pride.
The Old Swedish Bank Building: The Center’s Home
The center will be the anchor tenant of the renovated Old Swedish Bank Building, 965 Payne Ave. The building was renovated by the Neighborhood Development Center, and is owned by the East Side Neighborhood Development Company, a local nonprofit bringing residents and business people together to “create wealth and well-being in a thriving and engaged multi-cultural neighborhood.”
“We are excited about this new center and the benefits it will bring to its customers,” said Karen Drummer, the center’s branch manager. “Helping working people become financially stable, grow their wealth and achieve their dreams is what we’re all about.”
US Federal Credit Union
US Federal Credit Union is Minnesota’s oldest financial cooperative dedicated to providing sound financial services and promoting financial security and economic well being for all. For more information, visit www.usfed.org.
Lutheran Social Service of Minnesota
Lutheran Social Service of Minnesota offers a wide variety of human support services relating to the basics of life—food, shelter, safety, physical and emotional well-being. For more information, visit www.lssmn.org.
Thrivent Financial for Lutherans
Thrivent Financial for Lutherans is a Fortune 500 financial services membership organization helping nearly 3 million members achieve their financial goals and give back to their communities. For more information, visit www.thrivent.com