LEVERAGE MORE INITIATIVE (LEVERAGE)
Financial exclusion, particularly among historically marginalized groups, is a significant problem in the United States and worldwide. According to the 2021 FDIC National Survey, nearly 6 million U.S. households were unbanked, which can limit access to credit, savings, and other financial services. These households also have fewer options for building wealth and achieving financial stability, which can perpetuate poverty and inequality. Unbanked rates were higher among lower-income households, less-educated households, and households headed by single mothers, as well as Black and Hispanic households. These disparities persist across all income levels, indicating that race and ethnicity are strong determinants of financial exclusion. This systemic inequality can be traced back to historical discrimination based on race, gender, ethnicity, or religion, which has resulted in significant disparities in access to education, employment, and other opportunities. For instance, the legacy of colonialism and slavery has resulted in economic and social inequalities that continue to impact marginalized groups in many countries, even today. Addressing these systemic barriers is crucial to ensuring that everyone has access to the financial tools and resources needed to achieve economic security and upward mobility.
Leverage will stand as a platform and app to vet existing programs and services in preparation for launching them into underserved communities with the goal to increase knowledge and decrease the number of financially excluded people. We will achieve this by reducing the number of unbanked households and addressing the racial wealth gap, researching systemic inequality, creating pathways to vetted reasonably priced financial products and services, reducing predatory products and services, and recognizing the impact of slavery and other trauma on the mindset of the financially excluded.
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- Promoting Financial Literacy: A key element in reducing the number of unbanked households is to provide financial education to those who lack access to financial services. This includes basic financial education, such as budgeting, saving, banking, and homeownership. We will increase public and private partnerships with schools, community centers, and other non-profit organizations to offer attractive fun financial education programs.
- Increasing Access to Financial Services: Improving access to affordable and reliable financial services, such as checking and savings accounts, loans, and credit, is critical in reducing the number of unbanked households. We will continue to grow a network of Community Development Financial Institutions (CDFI) and traditional financial institutions to create more flexible and accessible financial products, such as low-cost bank accounts and small-dollar loans.
- Addressing Systemic Inequality: We will create, promote, and support policies and initiatives that aim to reduce the wealth gap. This includes measures such as increasing the minimum wage, expanding access to affordable housing, and providing greater access to education and job training opportunities.
- Reducing Predatory Products and Services: We will work diligently to identify and quantify the number of predatory financial products and services that disproportionately affect marginalized communities. We will work with regulatory agencies to increase their enforcement of existing consumer protection laws and work with financial institutions to yield more affordable products and services as competition.
- Recognizing the Impact of Slavery: We will adjust our strategies to acknowledge the impact of cultural trauma, slavery, and other forms of historical discrimination to address systemic inequality. This includes supporting initiatives that seek to provide funding to marginalized communities and promoting policies that promote greater economic and social equity.
Financial exclusion affects various segments of the population, but certain groups are disproportionately impacted. These include:
- Low-income households: Low-income households are more likely to be financially excluded. They are also more likely to use alternative financial services, such as check-cashing and payday lending, which often have higher fees and interest rates.
- Minorities: Minorities, particularly Black and Hispanic households, are more likely to be financially excluded than white households. This is often due to historical discrimination and systemic barriers.
- Rural residents: Residents of rural areas are more likely to be financially excluded due to limited access to banking services. Many rural communities have fewer banking options.
- Immigrants: Immigrants, particularly those who are undocumented, may face additional barriers to accessing financial services due to their legal status.
- Elderly: Elderly individuals may also be financially excluded, particularly if they live on a fixed income or have limited mobility. This can make it more difficult to access basic financial services or navigate the increasingly complex financial landscape.
Financial exclusion can pose significant challenges for individuals and communities, particularly those that are already marginalized or economically disadvantaged.
- Limited Access to Basic Financial Services: This can make it difficult to receive payments, pay bills, and save money.
- Higher Transaction Costs: Forced to rely on alternative financial services such as check-cashing services or payday lenders results in high fees and interest rates, which can create a cycle of debt and financial insecurity.
- Limited Opportunities for Asset Building: This can make it more difficult to purchase a home, start a business, or invest in education or other opportunities that can lead to long-term financial stability.
- Greater Exposure to Financial Risk: Without access to basic financial services and affordable credit, individuals may be forced to rely on high-cost, high-risk financial products. This can put them at greater risk of financial shocks such as unexpected expenses, job loss, or illness.
- Limited Ability to Participate in the Formal Economy: Being financially excluded can also limit an individual's ability to participate in the formal economy. This can make it more difficult to find employment, secure loans, or participate in other economic activities.
- Social and Emotional Costs: Finally, being financially excluded can have significant social and emotional costs. It can lead to feelings of shame, anxiety, and frustration, as well as create barriers to social inclusion and participation.
Leverage will utilize technology, subject matter experts, spokes people, media, sports, and entertainment to bombard the target market with positive reliable financial information that meets them where they are. Leverage will be the trusted platform for the financially excluded to begin a safe journey toward understanding capitalism and participating successfully to improve quality of life through cash flow enhancement, credit elevation, asset accumulation, and wealth building.
Wealth Watchers Inc. has been serving the community for over twenty years. The team lead, Edward Gaston has over 25 years of community and economic development experience including banking and lending. Wealth Watchers is a HUD Certified Counseling Agency with HUD-certified counselors that are consistently trained to provide the masses with true financial education. Our board is comprised of representatives from the communities we serve with 30% of the board representing low to moderate-income communities and 100% of the board being BIPOC. Our overall organizational structure allows us to continually engage our target market which allows us to adjust or solution on a timely basis. Leverage is a vital component in the community to allow the target market to participate in the development and implementation of the solution.
- Provide new ways to accurately assess credit-worthiness of MSMEs and individuals, including methods that reduce bias against borrowers who have traditionally lacked equitable access to credit
- United States
- Prototype: A venture or organization building and testing its product, service, or business model, but which is not yet serving anyone
We have established financial curriculum along with a secured server to begin vetting and delivering products and services to financially excluded BIPOC cultures, communities, and individuals.
We have a database of 4,850 households that will be targeted with the initial launch of Leverage.
We are applying so that we can create more visibility for Leverage More and potential gain more resources to assist us in better serving our target market. We believe that by becoming a recognized solver, we will be able to polish our program and explore methods for scaling it for sustainability.
- Business Model (e.g. product-market fit, strategy & development)
- Financial (e.g. accounting practices, pitching to investors)
- Legal or Regulatory Matters
- Monitoring & Evaluation (e.g. collecting/using data, measuring impact)
- Product / Service Distribution (e.g. delivery, logistics, expanding client base)
- Public Relations (e.g. branding/marketing strategy, social and global media)
- Technology (e.g. software or hardware, web development/design)
The Leverage More Initiative is innovative in its approach because it directly addresses a problem with transparency and truth. Leverage will stand as a platform and app to vet existing programs and services in preparation for launching them into underserved communities with the goal to increase knowledge and decrease the number of financially excluded people. By including other spaces such as the media, athletes, entertainers, community leaders, and subject matter experts to deliver real-world information, there will be a higher absorption of information rate. We will achieve this by reducing the number of unbanked households and addressing the racial wealth gap, researching systemic inequality, creating pathways to vetted reasonably priced financial products and services, reducing predatory products and services, and recognizing the impact of slavery and other trauma on the mindset of the financially excluded. Changing the mind-set will definitely change the financial arena for the better.
Impact Goals for Next 12 Months (Number of Individuals)
Outreach and Education of Individuals - 5,000
New Bank Accounts (2nd Chance Accounts) - 1,000
Credit Score Improvement - 500
Homebuyers/Refinance - 100
Heirs Property Education - 120
Property Tax/Insurance Review - 200
Wills Created - 150
Workforce Trained - 25
Impact Goals for 60 Months (Number of Individuals)
Outreach and Education of Individuals - 25,000
New Bank Accounts (2nd Chance Accounts) - 5,000
Credit Score Improvement - 2,500
Homebuyers/Refinance - 500
Heirs Property Education - 600
Property Tax/Insurance Review - 1,000
Wills Created - 750
Workforce Trained - 125
We will achieve the goals with a consistent attractive campaign. In some cases it will be a party with a purpose. And in other cases it will be quickly addressing an emergency need.
- 1. No Poverty
- 4. Quality Education
- 8. Decent Work and Economic Growth
- 10. Reduced Inequalities
- 12. Responsible Consumption and Production
- 17. Partnerships for the Goals
We utilize formal applications to begin the process and a client management system to measure our progress and success.
A theory of change focuses on a range of interventions that target different aspects of the financial system and consumer behavior.
Improving access to financial services: This involves expanding access to traditional banking services, such as checking and savings accounts, and promoting the use of alternative financial services, such as mobile banking and prepaid debit cards. This can be achieved by working with banks and financial institutions to reduce fees and minimum balance requirements, and by promoting the use of technology to expand access to financial services.
Enhancing financial literacy and education: This involves providing individuals with the knowledge and skills they need to make informed financial decisions and take control of their financial lives. This can be achieved through financial education programs, such as workshops and seminars, and by providing access to resources, such as financial counseling and coaching.
Addressing systemic barriers: This involves addressing the systemic barriers that have historically limited access to financial services for certain groups, particularly low-income households and minorities. This can be achieved by advocating for policy changes that promote greater financial inclusion, such as expanding access to affordable housing, increasing the minimum wage, and improving access to healthcare.
Encouraging savings and investment: This involves promoting the benefits of savings and investment and providing access to affordable savings and investment products. This can be achieved by working with financial institutions to create affordable and accessible savings and investment products, and by promoting the use of tax incentives and other policies that encourage savings and investment.
Our core technology includes SMS, apps, software, AI, and virtual reality.
- A new business model or process that relies on technology to be successful
- Artificial Intelligence / Machine Learning
- Audiovisual Media
- Behavioral Technology
- Big Data
- Crowd Sourced Service / Social Networks
- Imaging and Sensor Technology
- Internet of Things
- Software and Mobile Applications
- Virtual Reality / Augmented Reality
- United States
- United States
- Nonprofit
A STATEMENT FROM WEALTH WATCHERS INC. REGARDING
SOCIAL INJUSTICE AND SYSTEMIC RACISM
We, at Wealth Watchers share in the concern and action throughout the
nation and the world stemming from the collective grief, pain, and outrage
caused by the documented deaths and mistreatment of Black people at the
hands of those who choose hate and greed over humanity.
We recognize and acknowledge the pain endured because of the color of
one's skin and we will continuously identify issues and contribute to the
solutions.
We will not ignore the negative impact of over 400 years of systemic racism
that has created social, economic, and educational laws that limit
opportunities, magnify oppression, increase poverty and contribute to
senseless violence in Black America.
Wealth Watchers was founded for the masses pursuing and solidifying
equality and equity in every corner of society, to gain good ground, to
improve access to resources, and to foster progress and pride in
communities that have suffered greatly under the knee of injustice and hate.
As we continue to build better communities, we know we may be labeled,
negatively targeted, treated unfairly and harmed --- just as people of color
have. Nonetheless, we will work courageously to achieve success for and
within our communities.
The Wealth Watchers Inc. team proudly stands with individuals and families
to navigate through financial hurdles, leverage resources, and increase their
abilities to realize their self-determined goals. We are committed to being an
organization always striving for excellence to better serve as a catalyst for
positive and lasting change through education, community building and
engagement, homeownership, lending, small business development,
workforce development and neighborhood stabilization.
Wealth Watchers will continue to listen and be a voice for economic and
social justice understanding that silence is complicit. We stand and kneel
with our community, peaceful protesters and corporate partners in
seeking equity and equality for all.
Our business model is based on fee income, grants, foundation, and philanthropic support.
- Individual consumers or stakeholders (B2C)
We will continue with our current business model and compete for fee income, grants, foundation, and philanthropic support.
Our current budget is approximately $1.2 million annually.
COO/Founder