Financial Empowerment Center Replication Initiative

Financial Empowerment Centers (FEC) offer professional, one-on-one financial counseling as a free public service to enable residents to address their financial challenges and needs as well as plan for their futures. In partnership with seed funder Bloomberg Philanthropies, and additional generous support from Principal Foundation and the Wells Fargo Foundation, the CFE Fund is promoting FEC replication through cohorts of local leaders who are developing, launching, and implementing financial counseling as a free public service, along with strategic research projects to enhance the success of financial counseling. Get in touch to join as a supportive funding partner.

The CFE Fund is supporting cohorts of new cities or counties interested in launching a Financial Empowerment Center through FEC Academy, an expanded entry point to the FECPublic movement. The CFE Fund’s FEC Academy guides government partners through each step of planning to launch the FEC model of professional, one-on-one financial counseling as a local public service. FEC Academy includes significant CFE Fund technical assistance, access to planning resources and information, and participation in a robust learning community. Upon completion of the FEC Academy, partners will be equipped to mobilize the building blocks to launch the Financial Empowerment Center initiative in their community, including through leveraging federal funding streams like the American Rescue Plan Act (ARPA).   

The Financial Empowerment Center Model

Financial Empowerment Center clients receive free, one-on-one professional counseling assistance with money management, budgeting, reducing debt, establishing and improving credit, connecting to safe and affordable banking services, building savings, and referrals to other services and organizations. Professionally trained counselors support their clients in navigating complex financial challenges and choices, helping them identify and meet present challenges and future ambitions. Local governments offer FEC financial counseling as a free stand-alone public service, but also via integration into other social services including housing and foreclosure prevention services, workforce development, prisoner reentry, benefits access, domestic violence prevention, and more.

Financial Empowerment Center Evaluation Findings

In 2013, the CFE Fund awarded its first grants to replicate the model in five cities through a $16.2 million, 3-year investment by Bloomberg Philanthropies. An Evaluation of Financial Empowerment Centers: Building People’s Financial Stability As a Public Service, demonstrates the success of the 5-city implementation, drawing on data from 22,000 clients who participated in 57,000 counseling sessions across the first 5 city replication partners.

Bank On

Bank On coalitions are locally-led partnerships between local public officials; city, state, and federal government agencies; financial institutions; and community organizations that work together to help improve the financial stability of unbanked and underbanked individuals and families in their communities. In addition to connecting people to safe and affordable accounts, Bank On coalitions also work to raise public awareness, target outreach to the unbanked, and expand access to financial education.

The CFE Fund’s Bank On national initiative builds on this grassroots movement, supporting local coalitions with strategic and financial support, as well as by liaising nationally with banking, regulatory, and nonprofit organization partners to expand banking access, including through the first-ever Bank On National Account Standards, updated for 2023 – 2024. The CFE Fund announced an online Bank On account validation and certification process; banks and credit unions across the country, at no cost, can submit for validation products they believe meet the national Standards. The list of financial institutions offering such products continues to expand across the country.

CFE Fund Announces Opening of New Financial Empowerment Centers in 5 Cities

Financial Empowerment Centers offer free, professional, one-on-one financial counseling to enable residents to address their financial needs and plan for their futures.

In this March 2013 press release, the CFE Fund and Bloomberg Philanthropies announce the opening of five new Financial Empowerment Center programs to provide free, personalized, and professional financial counseling to residents of Denver, CO; Lansing, MI; Nashville, TN; Philadelphia, PA; and San Antonio, TX. Clients receive assistance with money management, budgeting, reducing debt, establishing and improving credit, connecting to safe and affordable banking services, building savings, and referrals to other services and organizations.  Counselors are professionally trained, and support their clients in navigating complex financial decisions. Financial counseling is integrated into public services including housing services, homeless prevention, foreclosure prevention, workforce development, asset building, financial services access, and domestic violence prevention.