Mas a Ti

Overview

The National Council of La Raza’s (NCLR) Family Asset-Building Initiative conducts and supports research on the structural barriers to wealth-building for Latino families, identifying the obstacles that Latinos face in the financial services market, and recommending effective solutions for overcoming the challenges.  Based on this research and NCLR’s experience in managing its 11-year-old, extensive Homeownership Network, we have developed an innovative approach to serving the financial education needs of low-income families with our Economic Mobility Centers (EMCs).  Our newest program, Mas a ti, will connect Latino families to existing financial education and counseling programs while also offering affordable financial services.

The Foundations of Mas a ti

Mas a ti is a community-based financial program that combines affordable financial services with asset-building case management services.  This combination of services is exceptional in the financial field, and will become an instrumental component of NCLR’s wealth-building initiative as we seek to remedy the lack of information and financial services available to the low-income Latino community. 
Mas a ti will cater to low-income households who:  seek improved access to financial services, use storefront check cashers, or self-identify as needing financial literacy or pre- or post-purchase homebuyer counseling.   The program will provide guidance in areas such as check cashing, remittances, and money orders, and will direct services with regard to Individual Development Accounts (IDAs), financial literacy education, community tax preparation, and housing counseling.

Our Goals

• Provide families a low-cost option for financial services
• Bridge Latino families into the financial mainstream by using payment history to build credit, and by using financial education to teach proper use of the banking services 
• Discourage predatory financial practices by providing a practical way for family to access financial education and counseling programs
• Link Latino families to wealth-building programs related to homeownership, IDAs, down-payment assistance, earned income tax credits, and child tax credits

Why Mas a Ti

Research indicates that at least 36% of Latinos do not hold bank accounts.  In addition, due to financial literacy issues, more than half of low-income consumers with bank accounts use often predatory non-bank financial service providers.  The people outside of established financial institutions often pay more to complete common financial transactions, and they lack access to credit. 
According to Business Week, “the other banking system”—payday lending, check cashing services, rent-to-own, etc.—represents $250 billion in annual sales to almost exclusively low-income consumers.  By entering this marketplace, Mas a ti will assist the un/underbanked with better financial choices so they can enter the financial mainstream and effectively and inexpensively use financial services to build assets and accumulate wealth.
Through our research and activities in the financial and homeownership fields, NCLR has further determined that homeownership remains the primary financial goal for most families.  This is particularly true for low-income families for whom homeownership is the single greatest wealth-building vehicle.  Clearly, however, more needs to be done for low-income families to promulgate the effective use of financial services that build financial assets.  In response to these needs, NCLR expanded its wealth-building efforts by creating this new channel, Mas a ti, to help families overcome barriers to the accumulation of assets.  

Expanding the Mas a ti System

• NCLR is developing a new franchise model that is currently being tested at an NCLR Affiliate site.
• NCLR has over 50 nonprofit counseling agencies in its Homeownership Network with the capacity and technology to implement the model.
• NCLR expects that the impact in the community will warrant national expansion, and is seeking investors who will support increased implementation of the system.