Grantees | Neighborhood Trust Financial Partners

neighborhood trust financial partners

Grant Years

2024,2025

Program Strategy

social mobility

Location

New York, NY

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The Challenge

Millions of workers in the U.S. are financially insecure and reliant on debt to make ends meet.

Financial insecurity has become the norm for most working Americans, rooted in the failures of the labor market and financial services market to truly understand and meet workers’ needs.

Today, 44% of all U.S. workers are low-wage, earning a median hourly wage of $10.22, with Black and Latinx workers most likely to earn low-wages. As many as 60% experience unpredictable hourly schedules, leading to volatile incomes.

To cover the cost of household essentials, low-income workers are often forced to borrow from credit cards, their future paycheck, their retirement account or from family. Many turn to expensive and predatory short-term services—nearly 12 million Americans take out payday loans each year. As of early 2021, U.S. households carry a cumulative $14.64 trillion in debt and 29% of them have debt in default or collections.

Financial insecurity has become the norm for most working Americans, rooted in the failures of the labor market and financial services market to truly understand and meet workers’ needs.

For workers, financial insecurity has real impacts on quality of life. Carrying overwhelming debt can inhibit their economic mobility, educational attainment, psychological well-being, and even physical safety by preventing access to secure housing.

We, as a society, are faced with an opportunity to fundamentally re-think and re-shape how workplaces and financial services operate so that they prioritize worker financial security and debt reduction. There is a need for effective, scalable solutions that get workers out of debt in the short term, guided by the realities of what got them into debt in the first place. Neighborhood Trust is taking on that challenge.

the solution

how it works

solutions for workers

SOLUTIONS FOR WORKERS

Neighborhood Trust's workplace benefit TrustPlus provides trusted financial guidance to workers, and connects them to safe and effective financial products. The Trust Plus program is also offered in partnership with non-profits to their staff and clients. The result is reduced debt, improved credit, and less financial stress.

Through the Financial Empowerment Centers (FEC) initiative, a partnership with the City of New York, they offer free, one-on-one financial coaching to all city residents.

In addition, their Pathways program, trains credit union staff nationwide to provide their model of action-oriented financial coaching to their members. Together, these programs allow Neighborhood Trust to serve underserved communities, and bring economic stability and empowerment to those who need it most.

The best place to reach workers is through the workplace. Our workplace benefit TrustPlus provides trusted financial guidance to workers, and connects them to safe and effective financial products. The result is reduced debt, improved credit, and less financial stress.

Through the Financial Empowerment Centers (FEC) initiative, a partnership with the City of New York, we offer free, one-on-one financial coaching to all city residents.

In addition, our Pathways program, a partnership with credit union advocacy network Inclusiv, trains credit union staff nationwide to provide our model of action-oriented financial coaching to their members. Together, these programs allow us to expand our reach and serve underserved communities, bringing economic stability and empowerment to those who need it most.

INSIGHTS FOR CUSTOMERS AND PARTNERS

Real change can happen when employers and institutions hold themselves accountable for helping workers build financial security. They advise customers and institutional partners on how to more effectively support workers’ financial needs, and they co-design innovative solutions together.

marketplace transformation

MARKETPLACE TRANSFORMATION

The nature of work and the financial services industry are ripe for a worker-centered transformation. Neighborhood Trust shares data and qualitative insights on the financial realities of workers to inform, influence, and motivate change. Their work impacts market leaders, advocates, and peer social enterprises who share their desire to pursue a more equitable economic system.

Results

"Poverty isn’t simply the condition of not having enough money. It’s the condition of not having enough choice and being taken advantage of because of that. … The exclusion of poor people from traditional banking and credit systems has forced them to find alternative ways to cash checks and secure loans, which has led to a normalization of their exploitation.”

"Poverty isn’t simply the condition of not having enough money.

It’s the condition of not having enough CHOICE and being taken advantage of because of that. … The exclusion of poor people from traditional banking and credit systems has forced them to find alternative ways to cash checks and secure loans, which has led to a normalization of their exploitation.”

50%

improved their credit by an average of 68 points

47%

reduced consumer debt by a median of $4,210

63%

of clients with accounts in collections reduced them; 33% eliminated their collections accounts entirely

72%

of clients achieved at least one of the goals they set with their Financial Coach

83%

of Neighborhood Trust clients report “working with my coach reduced my financial stress.”

90%

of clients agreed that “Working with my coach helped me create or improve a plan for managing my finances during these uncertain times.”

impact

Horacio’s life is a whirlwind of activity, working two jobs that keep him occupied seven days a week.

Between the demands of work and the responsibilities of supporting his family in the Dominican Republic, Horacio has little time to focus on his finances.

For years he saved toward his dream of homeownership, but when the basement he was renting began flooding, his dream quickly became a pressing need. Before the flooding, he had applied for a mortgage but was rejected and given minimal explanation. It wasn’t until he met with his Financial Coach, Ana, through his credit union, that he began to unravel the complexities of his financial situation.

Together, Ana and Horacio delved into a detailed breakdown of his finances. This was the first time that Horacio was seeing his credit report and getting an explanation of why he was not eligible for a mortgage.

“The credit system in the US is a mystery, with no one to guide you through the steps. There is no straightforward advice, no hands-on guidance. But with Ana’s help, I gained clarity and confidence to move forward.”

Ana discovered a late mortgage payment on Horacio’s credit report, which surprised him as he had actually made the payment on time. Ana found that the late payment was due to a post office error. She guided Horacio through multiple calls with the credit bureau to remove the late charge from his report. Ana also advised Horacio to reinforce the process by mailing dispute letters. As a result, his score increased from 541 to 682—a 141-point increase after his credit report was updated.

Horacio also had one collection account on his credit report. He paid off the account in full in May 2022, but the collection still remained on his credit report. Before meeting with Ana, Horacio was unaware of the protocol to remove paid-off collection accounts from his report. Ana assisted him in initiating a dispute with the credit bureau which led to the account being updated to “paid” on his report.

After improving his credit, Ana helped Horacio secure a mortgage. He initially applied to a large financial institution for a mortgage, but they were slow and unresponsive regarding his application to buy a condo. Horacio began to feel disappointed by the bank’s lack of responsiveness until Ana suggested that he apply for a mortgage at his local credit union.

“Before financial coaching, I didn’t have hope that I would be able to afford anything on my own, but working with Ana changed my life. I appreciated her patience and the time she took to explain things to me in a way I could understand. She really took the time to help me find a way to reach my goals.”

Ana assisted Horacio with completing the mortgage application forms, leading to him quickly securing a mortgage, an opportunity that might not have been available at a larger bank with stricter criteria. Horacio now pays nearly the same amount, $1,077 for his condo mortgage compared to his previous $1,000 basement rent, but now he’s building equity and enjoying more space.

“Purchasing a new home was an opportunity to finally prioritize myself and enjoy life. Now, I can sleep in peace. I feel like a new person.”

Horacio is excited about investing in his new home and eager to share what he has learned about finances with his community.

“I don’t want to keep this knowledge to myself. I want to share it with my community so that they, too, can pursue their goals.”

neighborhood trust financial partners

Millions of workers in the U.S. are financially insecure and reliant on debt to make ends meet.

how it works

solutions for workers

SOLUTIONS FOR WORKERS

INSIGHTS FOR CUSTOMERS AND PARTNERS

INSIGHTS FOR CUSTOMERS AND PARTNERS

marketplace transformation

MARKETPLACE TRANSFORMATION

50%

improved their credit by an average of 68 points

improved their credit by an average of 68 points

47%

reduced consumer debt by a median of $4,210

reduced consumer debt by a median of $4,210

63%

of clients with accounts in collections reduced them; 33% eliminated their collections accounts entirely

of clients with accounts in collections reduced them; 33% eliminated their collections accounts entirely

72%

of clients achieved at least one of the goals they set with their Financial Coach

of clients achieved at least one of the goals they set with their Financial Coach

83%

of Neighborhood Trust clients report “working with my coach reduced my financial stress.”

of Neighborhood Trust clients report “working with my coach reduced my financial stress.”

90%

of clients agreed that “Working with my coach helped me create or improve a plan for managing my finances during these uncertain times.”

of clients agreed that “Working with my coach helped me create or improve a plan for managing my finances during these uncertain times.”

Horacio’s life is a whirlwind of activity, working two jobs that keep him occupied seven days a week. Between the demands of work and the responsibilities of supporting his family in the Dominican Republic, Horacio has little time to focus on his finances.

Horacio’s life is a whirlwind of activity, working two jobs that keep him occupied seven days a week.

Between the demands of work and the responsibilities of supporting his family in the Dominican Republic, Horacio has little time to focus on his finances.