“split to save” presentation - electronic payments to save... · © 2017 nacha —the...

© 2017 NACHA — The Electronic Payments Association. All rights reserved. No part of this material

may be used without the prior written permission of NACHA. This material is not intended to provide

any warranties or legal advice and is intended for educational purposes only.

2017

“Split to Save”

Presentation




• Introduction of Founding

Organizations

• Overview of Direct Deposit and Split

Deposit

• Overview of Workers and Savings

Habits

• Overview of “Split to Save”

Campaign Initiative

Contents




ACH Network

About NACHA

$41 Trillion

24 Billion Transactions




About America Saves




About America Saves

• Savers who joined America Saves in 2011 reported saving $7,000* since joining America Saves

• What females and males reported saving for differed widely. Females heavily favored saving for an emergency fund, while males heavily favored saving for retirement

• The most important saving goals for savers include: Emergency Fund, Retirement, and Debt Repayment

• Savers tell us that since they joined America Saves they feel more hopeful about their financial situation, they are saving more, and they are managing their debt better




About ePayResources

• The second-largest Regional Payments Association

• Providing payments expertise, professional development, and

industry leadership

• Serving financial institutions and businesses for 40 years

• Member services include education, publications, compliance

support, risk management resources, and advocacy

• Headquartered in Dallas

• Offices also in Virginia, North Carolina, Florida, and Alabama

• www.ePayResources.org

• Follow us on Twitter (@ePayResources_), LinkedIn, and Facebook




• Direct Deposit is the electronic

deposit of pay directly to a

checking or savings account

• Split Deposit enables an

employee to direct a fixed

amount or percentage of their

pay into a savings or

investment account each pay

period

Direct Deposit and Split Deposit




Safe

Free

Fast

Environmentally Friendly

Time Saver

Helps employees better manage finances and save

automatically





• 82% of workers use

Direct Deposit

…but…

• Only 24% use

Split Deposit





• 87% of Direct

Deposit users are

very satisfied with it

• 73% of Split

Deposit users like it





• Nearly 3 in 4 Direct

Deposit users say their

employer first made

them aware of it

• More than 60% of

employees claim that

their employer’s

practices influenced

their choice to use

Direct Deposit





People Save Automatically

4%

7%

23%

25%

36%

44%

49%

Prepaid debit card

Mail, Telephone

Logging into website

Mobile app

ATM or teller

Automatic electionic fund transfer

Direct payroll deposit

0% 10% 20% 30% 40% 50% 60%

Savings Methods Used

2015




People Save Through Traditional Accounts

4%

7%

9%

9%

10%

12%

15%

21%

34%

37%

64%

0% 10% 20% 30% 40% 50% 60% 70%

Savings option on prepaid debit card

Savings bond

529 or other education savings plan

Christmas club account

Certificate of deposit

Brokerage account

Money market account

Safe place at home

Checking account

Credit union savings account

Bank savings account

Savings Products Used

2015




Lack of Saving

• Problem is majority not saving- national savings rate approx. 4%

• People ages 30-49 are the most likely of any age group to have no emergency savings. – Bankrate.com

• 46% of Americans do not have $400 readily available to cover an emergency expense – Federal Reserve

• The average employee spends 28 hours each month worried about, calculating, or stressed over finances, costing employers $5,000 a year in lost productivity. –Federal Reserve 2010

• Path to increased debt - Repeat payday loans account for 76% of total volume *-By Leslie Parrish and Uriah King Center for Responsible Lending July 9, 2009




People Don’t Think They Can Save

• 50% of household decision‐makers believe they “just don’t

earn enough money to save regularly.”

• Majority of those in the under $25,000 (61%) and

$25,000‐$49,999 (64%) income brackets feel discouraged

from saving for this reason.

• $50,000‐$99,999 category, half (50%) feel their income

level is a barrier to saving regularly.

• And one‐ quarter (26%) in the $100,000 or more category

are inclined to believe that their income is insufficient to

allow them to save on a regular basis.

2012 HOUSEHOLD FINANCIAL PLANNING SURVEY A Summary of Key Findings July 23, 2012

Prepared for: Certified Financial Planner Board of Standards, Inc. and the Consumer Federation of America

Prepared by: Princeton Survey Research Associates International




• That’s where we get our paycheck and

access to direct deposit:

– 82% of employees in U.S. participate in direct

deposit

• With direct deposit we can allocate a % to

savings:

– Of that 82%, only 24% utilize split deposit

• And we can make it automatic:

– 85% of split deposit users say it is helping them

to save

– Most common use for split deposits (83%) is for

an emergency fund

The Best Way to Save - Automatically




• 92.3% of Americans have a

bank account

• 77.8% of Americans have a

savings account (FDIC 2015

National Survey of Unbanked

and Underbanked)

• 82% of U.S. Workers use

direct deposit

– 24% of them split into a savings

type account (Javelin 2016)

The Opportunity to Increase Personal Savings




• “Split to Save” is an outreach

effort designed to encourage

workers to grow savings through


• “Split to Save” targets are

businesses, large and small, and

organizations servicing other

businesses and consumers

What is Split to Save




• Split to Save provides

customizable resources

for organizations to use

and share to promote

Direct Deposit and Split

Deposit

– Web ads, print ads,

articles, social posts, etc.

What is Split to Save

www.electronicpayments.org/save




Split to Save Timeline

February 27 May 31--------------------------------------




Partner with us!

www.electronicpayments.org/save

Join Split to Save

© 2016 NACHA — The Electronic Payments Association. All rights reserved.

No part of this material may be used without the prior written permission of NACHA. This material is not

intended to provide any warranties or legal advice and is intended for educational purposes only.




Questions?

Contact Shanon Murray

[email protected]

(703) 561-3932

mailto:[email protected]

“split to save” presentation - electronic payments to save... · © 2017 nacha —the...

Documents