The LIFT project is targeting the vulnerable and growing low-moderate income customer segment with sub-prime credit. LIFT supports education capacity by rewarding consistent timely loan payments on automobile loans. By using new web-based tools to automate administration, consumers earn APR reductions for each year of on-time payments. The interest rate savings go to principal, reducing the life of the loan. LIFT focuses borrowers on the goal of making on-time loan payments and backs up that focus with an explicit and salient sustainable financial incentive. Filene will conduct a national pilot with 6-8 credit unions targeting 1,200+ borrowers to test whether LIFT can ultimately improve borrowers’ credit scores and overall financial capability. The Center for Financial Security at the University of Wisconsin-Madison is the evaluation partner for the LIFT project.
Filene Research Institute’s mission is to support research efforts that will ultimately enhance the well-being of consumers and assist credit unions in adapting to rapidly changing economic, legal and social environments. The Filene Research Institute was founded on the core values inherent in credit union philosophy. The Institute's founders and today's Institute leaders believe that research and new ideas are critical tools for understanding:
- How people can cooperate more effectively to achieve goals
- How more people can gain economic independence
- How the spirit of mutual self-help can build better communities
- How volunteerism can shape financial institutions that better respond to household need.
Filene Research Institute, "Low Interest for Timeliness (LIFT)" from Center for Financial Services In on Vimeo.
Filene Research Institute, "Low Interest for Timeliness (LIFT)" from Center for Financial Services In on Vimeo.
