The DriveUp Savings product is an outgrowth of the ignite program, which is rooted in the Filene Research Institute’s i3 program.
This site was designed with one very specific purpose: to provide credit unions with a way to easily implement the DriveUp Savings product.
What is it?
The DriveUp savings product is a savings account, such as a certificate, that is opened at the same time a member closes on their auto loan. The loan officer and member agree on a monthly contribution amount and through automated electronic transfers, the DriveUp Savings is funded at the same time the auto loan payment is made.
Where is the Opportunity?
Studies prove that half the US population lives paycheck to paycheck. The percentage is even higher (60%) for young adults. Many of these people earn respectable incomes, yet they have never been able to save money. They have either never been taught to save or have fallen into poor savings habits sometime in their life and have never been able to overcome the challenges those habits present.
Credit Union’s have an opportunity to impact the lives of these people and help them learn that they can save for the future. Studies further show that these members want to to save, but the options for them to do so are limited due to a high balances required to earn satisfactory savings rates and/or the non-availability of savings options that fit into their lifestyle. Credit Unions therefore have an opportunity to fill the gap where all other financial institutions have fallen short. By offering the DriveUp Savings Account, credit unions will help members accomplish a savings alternative.
Furthermore, the people who make up the biggest component of this consumer segment are the young adults who will become the core of the credit union membership over the course of the next decade. When taken in that context, it’s more than an opportunity, it’s a necessity.
