Take The LEAP

As a native CDFI, HawaiiUSA aims to build financially educated employees, credit union members, and community members.

 
 

HawaiiUSA Federal Credit Union ($1.3B, Honolulu, HI) operates 10 branches on the island of Oahu and two on the island of Maui. The natural beauty and the cost of importing goods to the islands make the cost of living one of the highest in the nation. According to a February 2014 Forbes article, 80% of island food and 100% of the oil is imported from the mainland. With 87% of the state’s energy coming from oil, it’s no wonder groceries and utilities cost 55.6% and 67.9% more than national average, respectively.

ScottKheadshot

In Honolulu County, where all 10 of the credit union’s Oahu branches are located, the median household income is higher and the poverty level is lower than the state’s; however, there are still low-to-moderate income consumers that need financial services geared toward their specific needs. HawaiiUSA, a Native CDFI, attempts to satisfy that need through its Life Events Assistance Program (LEAP), a financial education program it started in April 2013 to provide employees, members, and the broader community the resources to achieve financial stability and reach financial goals.

In this Q&A, Scott Kaulukukui, senior vice president of marketing and community outreach, talks about LEAP and HawaiiUSA’s status as a Native CDFI.

Can you detail the LEAP program?

Scott Kaulukukui:

Its various parts include:

  1. Employee certification: All HawaiiUSA employees will be certified in one of two levels of certification.
  2. Marketing and branding: We will use all delivery channels to communicate our commitment to financial education and reinforce our “life matters brand internally and externally to the members and community. In an effort to brand LEAP with our financial education activities, you will begin to see the LEAP logo on our website pages that reference financial education information and tools.
  3. LEAP website: This micro-site will house financial education information, tools, and resources for our employees, members, and the community.
  4. Partnership and product development: We will seek future partnerships with non-profit organizations that offer programs or resources we are not subject matter experts on or do not have the resources to implement. We will also be exploring new products and services to help members facing financial hardships.

LEAP Employee Certification (Roles)

 

Roles

Level One

Level Two

Who

  • Executive Administration
  • Diversified Services
  • Finance & Risk Management
  • Marketing & Community Outreach
  • Strategy & Solutions
  • Member Experience: Back Office Departments, Member Service Centers & Tellers
  • Lending: Staff
  • Branches:Management & Platform
  • Lending: Management & Credit Service
  • Selected Trusted Advisors

Responsibilities

  • Use information learned for personal knowledge and to improve and maintain a healthy financial condition
  • Familiarize yourself with the LEAP site features
  • Share knowledge with members including recommending use of planning tools/resources
  • If more in-depth information/assistance is required, refer to a member of Level Two
  • All of Level One
  • Meet with members to discuss present financial situation
  • Provide assistance in use of financial tools
  • Assist with developing action plans to achieve financial goals. If necessary, modify and monitor action plans
  • If more in-depth information/assistance is required, refer to a BALANCE Counselor

 

What course does LEAP offer?

SK: All employees are required to participate in the online certification program. No classroom type sessions are offered at this time. Future plans include offering these sessions to our membership and community.

The program is managed by our AVP-community outreach as one of her job duties. We have a group of trusted advisors made up of employees from branches, HR, and lending. They are responsible for helping to enhance the program.

LEAP Employee Certification (Implementation)

 

Implementation

Educational​ Courses

Recommended Exercises

Phase I

Level One & Two

  • 10 Steps to Financial Success
  • Checking Account Management
  • World of Credit Reports
  • Identify Theft
  • Money Management Planner
  • Review your credit report — www.leapwithhawaiiusa.com, click on Tools and Resources/Helpful Links/ Annual Credit Report (call a BALANCE Counselor for an in-depth review)
  • Watch BALANCE Credit Score Video

Phase II

Level One & Two

  • Financial First Aid
  • Drive Away Happy*
  • Finances for college students*
  • Personal Financnial Information Organizer
  • Watch Buying a Car Video

Phase III

Level Two only

  • Road to Homeownership
  • Using a Home Equity
  • Rebuilding After a Financial Crisis
  • Repaying Student Loans
  • How Much Mortgage Can I Qualify For? Worksheet
  • Watch Getting a Mortgage Video

Phase IV

Level Two only

  • High Cost of Financial Services
  • Basics of Investing
  • Financial Planning
  • TBD

*available as podcast

Why did the credit union see a need for this kind of a program?

SK: As an education-based credit union, we interact with the public schools in Hawaii. Financial education is not included in our school system’s curriculum, and many high school graduates have no idea about personal finance. So we felt there was a need to provide financial education in the schools. As you know, there is also a great need for this type of help in the community. As a credit union and CDFI, we felt it was in perfect alignment with our mission and brand of “life matters.” So we wanted to provide our employees financial education that they can use for themselves, their families, and, of course, our members.

Financial education is not necessarily for those who are challenged financially. Many do not know where to turn for advice and we felt we could be that resource.

Who does the credit union target for this program and how do you market it?

SK: We initially targeted our 320 employees and got them certified [see above chart for the necessary courses]. We then incorporated it into our marketing communications to our members and the community. We have targeted the life events that occur in our members’ lives and our messages lead with education. We have extended elements of our program to groups to teach and use with their students or participants.

What resources or investments does this require? What benefits does the credit union receive?

SK: The biggest resource the credit union needs is time from the staff. As mentioned, one person manages the program and we need buy in from all employees, including senior management. We also invested in third-party partners for our LEAP online content and educational materials.

It is our duty to give back to the community and provide valuable resources and tools. It also is our differentiator. If we lead with education, we can fulfill with our products and services. We know there is a need to provide this type of resource and the positive responses we’ve gotten so far make it worth it.

What are some of the best practices you've discovered?

SK: Obtaining buy-in on all levels is crucial. For starters, we formed a focus group that consists of staff from all areas and levels of the credit union to assist with developing the program. We also introduced the courses and assignments in four phases to ensure the staff was not overwhelmed.

HawaiiUSA is a Native CDFI. How much of your membership fits into that classification?

SK: The definition of “native” for the CDFI program is pretty broad, so it is difficult to tell what percentage of our 124,000 members fit in the classification. With that being said, the 2010 census bureau indicates that 10% of Hawaii’s 1.3 million population is Native Hawaiian or other Pacific Islander. 

This program is not limited to those who fit that classification, but how does it benefit those individuals specifically? 

SK: Inclusive in the program are educational materials and tools to help with budgeting, personal finance, understanding credit, and more. Also, being a CDFI, we have partnered with other CDFIs and community groups that serve this population to provide information and resources.

How does the information these individuals need differ from other members?

SK: We do not look at it as a difference between group classification as much as there is a need in our community to provide financial education. The difference comes from those who are willing to seek out assistance and those who choose not to.

Beyond financial education, what are the goals of this program?

SK: The goal of the program is to have all of our staff certified in some aspect of the program. We are currently at 99%. We also want members who make better decisions with their finances, which we know is a far-reaching goal. We measure this through a low delinquency rate, a high loan-to-share ratio, and minimal use of overdraft or courtesy pay programs.

— As told to Erik Payne

 

 

 

July 14, 2014


Comments

 
 
 

No comments have been posted yet. Be the first one.