News

On January 11, 2010, residents of East San Jose walked through the doors of the new Self-Help micro-branch and opened bank accounts. For some customers, this might be their very first account. This milestone was two years in the making for the North Carolina based Self-Help Credit Union, which in September became one of the Global Economic Opportunity Circle’s first three grant projects.

Says Project Co-Lead Anna Binder, “We are so excited to see the Self-Help team open the micro-branch doors! This huge milestone puts the Full Circle team in a position to launch the major phase of our project: helping clients make progressive changes to their financial behaviors.”

Bank accounts are opened every day, so what sets this micro-branch, named Micro Sucursal, apart? In recent years there has been an emerging industry of alternative financial service providers including check-cashers, pawn shops, and payday lenders. By providing check-cashing, bill-pay and remittance services, these businesses target “un-banked” and “under-banked” individuals and families living paycheck-to-paycheck.

The strategy behind the Self-Help micro-branch is that it looks and feels like a check-cashing outlet, but is not a predatory system. Rather, the micro branch is intended to create and protect ownership and economic opportunity for people of color, women, and low-wealth families and communities.

In the months leading up to the launch, Project Leads Anna Binder and Annette Brinton have been directing Full Circle Fund’s team on a number of different projects that range from very tactical to strategic. While the opening was in the works before Full Circle Fund’s involvement, the launching of the micro branch was a very hands-on step that required the full attention of the small Self Help team. Full Circle Fund’s focus on the strategic aspects allowed Self Help’s staff make sure even the smallest detail were handled properly, from whether there was paint on the walls, to whether the internet was working.

Says Micro Sucursal’s Director Haydee Moreno, “It is an incredible feeling to stand in the branch and see the vision come to fruition.”

Full Circle Fund’s diverse team brings subject matter experience that folds in well with this project’s needs. They are now responsible for thinking about the 300 potential community partners they want to make aware of the micro-branch, and is grappling with what might be the ideal approach to reaching them and the right messaging to use.

Members working on this project include OneCalifornia Bank’s Salvador Menjivar and RedF’s Jason Trimiew, and Chris Hobbs, who brings a tremendous amount of analytical ability and a wealth of knowledge of the check cashing industry. Other Members like Ken Tsunoda bring skills and knowledge from the philanthropic world that will be key to building relationships and partnerships.

Now that they have customers coming in the door, the team is also in the position to help experiment with different ways to affect the behavior of those clients. Full Circle Fund’s project team will eventually work to create a suite of products and services that will serve as a gateway to the clients’ financial stability and capital access.

Read a post about the micro-branch on Inside the Underbanked, Arjan Schutte’s blog.

Posted in Jason Trimiew, Salvador Menjivar, Ken Tsunoda, Chris Hobbs, Anna Binder, Global Economic Opportunity, Annette Brinton, Self Help, grant