CDAC Spotlight: Finding Ways to Help Individuals Achieve Financial Well-Being

CDAC Member Spotlight

Keith Turbett

Keith D. Turbett started his career at the Federal Reserve Bank of St. Louis—Memphis Branch, moving from the Cash and Securities area to supervise Securities operations. He also established a Community Affairs office at the Branch, providing banks and bank holding companies in West Tennessee, Eastern Arkansas and North Mississippi with information on appropriate programs to meet community development needs. Turbett later worked as the community development manager for Union Planters Corp.; corporate CRA officer at National Commerce Financial; and regional community development manager for SunTrust Bank. Currently, Turbett serves as first vice president and community development manager for SunTrust. He earned an associate’s degree in mid-management technology from State Technical Institute of Memphis and a banking diploma from the American Institute of Banking. He has also received training at the Community Development Finance School with the Federal Reserve Bank of Dallas and examiner training with the Federal Financial Institutions Examination Council. Turbett serves on the boards of Memphis Housing Resource Center, Fair Housing Alliance of Greater Memphis and United Housing Inc. He is a member of the Community Development Advisory Council (CDAC) for the Federal Reserve Bank of St. Louis.

---

CDAC members are experts in community and economic development and financial education. They complement the information developed through outreach by the District's Community Development staff and suggest ways that the Bank might support local efforts. A list of current members is available at www.stlouisfed.org/community_development.

---

Throughout the past century of SunTrust’s operations, the U.S. economy has been through ups and downs, communities have grown and adapted to changing times, and the financial needs of individuals and businesses—along with the banking services to meet those needs—have evolved. As a response, banks—including SunTrust—are finding new ways of putting clients first and helping them achieve financial well-being.

One way to further achieve broader prosperity is to help individuals without a banking relationship move from high-cost financial relationships to more traditional financial products. Bank On Memphis is a good example of this type of assistance. In partnership with the city of Memphis and Shelby County, SunTrust and other financial services institutions will introduce an estimated 96,000 households—who currently only use high-cost financial services or do not have banking relationships at all—to lower-cost financial services. In a city with high poverty and bankruptcy rates, this means more money for low- and moderate-income individuals and families to use on household expenses, education, health care or other necessities.

A C Wharton, Jr., the mayor of Memphis, summed it up well when he said, “Those who have the least pay the most for financial services. We’re not really poor in Memphis; we just spend poorly.”

Banks can be part of the solution, but must not be naive to the challenges ahead. Many people are comfortable transacting financial business in a certain way—even if they might benefit from lower costs or a broader range of services. Changing habits can be difficult—even if it saves money. That is why SunTrust is partnering with community organizations to increase awareness of financial solutions that can help improve lives.

SunTrust’s work with Porter-Leath, a large family and children’s services organization, is an example of a community partnership that has yielded tremendous results. Through the Family Rewards program, financial incentives are earned for efforts in three main areas: education, health and work. This conditional cash transfer program is designed to help low-income families reach their full potential and break the cycle of intergenerational poverty. Through this program, SunTrust opened accounts for 600 households who were previously without a banking relationship.

The bank is also bringing financial education resources into its branches. Operation HOPE is a global nonprofit leader for financial dignity focused on providing financial education resources to the underserved, which has proven to be effective in advancing financial literacy. SunTrust introduced Operation HOPE counselors to a branch in Memphis as part of the HOPE Inside pilot program. The counselors offer services tailored to the specific needs of an individual or business owner, including credit repair counseling, business entrepreneurship training, earned income tax credit eligibility and financial literacy education. These services are free and available to anyone in the community.

In an effort to be responsive to the needs of specific neighborhoods, SunTrust realizes that it takes more than tellers, branch managers and other teammates to provide the in-depth financial counseling to help individuals make more informed financial decisions. The bank’s partnerships with many agencies—such as United Housing, Memphis Housing Resource Center, RISE and other organizations across our footprint—aim to provide one-on-one financial counseling covering homeownership, credit counseling, budgeting and other topics.

These initiatives are not limited to individuals. The bank’s business clients are taking advantage of a program called SunTrust at Work. Employees of these clients benefit from classes taught by SunTrust bankers on a variety of financial subjects, such as “Five Steps of Debt-Free Living,” which covers topics including setting a budget, talking with lenders, evaluating spending, and saving and prioritizing debt payments.

The benefits of these partnerships have a ripple effect through communities. An informed homebuyer who has participated in financial counseling is a better prepared homeowner, which decreases the likelihood of default.

It’s important for banks to know that financial pressures affect a person’s overall well-being, including health, family relationships and even the quality of sleep. By finding ways to help individuals achieve financial well-being, banks can bolster the overall strength and resolve of their communities for years to come.