HOLLYWOOD, Calif.–California’s credit unions are preparing to offer prize-linked savings accounts following enabling legislation passed in this state.
Prize-linked savings accounts, which were pioneered by the Michigan league a decade ago, are designed to encourage people with low or no savings to build savings by offering random prize drawings to those who open and maintain savings accounts.
“We have millions of consumers in California who don’t have any money in any savings account,” said California and Nevada leagues’ President Diana Dykstra.
In remarks to the leagues’ REACH Conference here, Dykstra said the prize-linked savings legislation was among the 900 bills that were sent to Gov. Jerry Brown’s desk for signature in the most recent session.
In addition to the prize-linked savings bill, the leagues and credit unions were also focused on two other pieces of legislation in the most recent General Assembly, according to Dykstra: a state charter parity bill, and a privacy bill that, if credit unions had not been exempted, would have tripled the cost of league dues due to compliance, according to Dykstra.
And In other News
Also announced during the REACH meeting:
- The Richard M. Johnson Foundation’s Bite of Reality events touched 20,000 students during 2018.
- The California/Nevada leagues is asking credit unions to put $1 per member toward the Credit Union Awareness Campaign, themed “Open Your Eyes,” that has been developed by CUNA.
“I can’t tell you how incredibly important this is. I’ve been in the credit union movement for 36 years. there hasn’t been a year that’s gone by where we didn’t talk about an awareness campaign, and then we kick the can down the road. We have to do something big and bold, and now is the time.”
Dykstra added credit unions should not take that $1 per member out of their marketing budgets.
- Ron McDaniel, the retired president and CEO of California Credit Union, was named the winner of the Leo H. Shapiro Sward for Lifetime Achievement, the highest honor presented by the California and Nevada leagues.
- American Idol was holding its tryouts adjacent to the facility and hotel in which the California/Nevada leagues hosted the REACH meeting.