About Us
AARP Foundation
Households require a broad range
of financial services to function effectively
today and build and
protect assets into the future. From
checking and savings accounts to
mortgages, debit cards or retirement accounts
easy access to financial
services is essential to the strength and
vitality of American
families.
Unfortunately for households making below 300% of the poverty line, there is a mismatch between what they get for financial services and what they need. Every day families fall prey to payday lenders, bear unreasonable fees for check cashing or other services, and enter into subprime mortgages for lack of access to a better alternative.
Criterion Ventures recently assisted the AARP Foundation to develop a process to design effective programs to extend the reach of appropriate financial services to low income individuals over 50, with a particular interest in reaching minorities and women. We worked with the leadership of the AARP Foundation to focus on three approaches to taking on this problem:
Promote existing appropriate services - For example, non-profits or socially beneficial for-profits that offer unbiased advice to people in need of banking services, e.g., applying for a mortgage or opening a bank account.
Adapt existing products and services - For example, programs that adapt free tax assistance services by encouraging tax filers to invest part of their earned income tax credit into a savings vehicle.
Create new financial services – For example, the introduction of IDAs created a new way to encourage asset development
Given the strengths of the AARP Foundation and their close connection to AARP, solutions will also be screened for the following characteristics:
Unfortunately for households making below 300% of the poverty line, there is a mismatch between what they get for financial services and what they need. Every day families fall prey to payday lenders, bear unreasonable fees for check cashing or other services, and enter into subprime mortgages for lack of access to a better alternative.
Criterion Ventures recently assisted the AARP Foundation to develop a process to design effective programs to extend the reach of appropriate financial services to low income individuals over 50, with a particular interest in reaching minorities and women. We worked with the leadership of the AARP Foundation to focus on three approaches to taking on this problem:
Promote existing appropriate services - For example, non-profits or socially beneficial for-profits that offer unbiased advice to people in need of banking services, e.g., applying for a mortgage or opening a bank account.
Adapt existing products and services - For example, programs that adapt free tax assistance services by encouraging tax filers to invest part of their earned income tax credit into a savings vehicle.
Create new financial services – For example, the introduction of IDAs created a new way to encourage asset development
Given the strengths of the AARP Foundation and their close connection to AARP, solutions will also be screened for the following characteristics:
- Scalable - The Foundation is looking for things it can bring to scale across the country.
- Deep Impact – The Foundation is looking for projects that will have a significant impact on the participants being served.
- Broad Impact – The Foundation is looking to impact a large segment of their target population
- Partnerships – The Foundation is seeking partners with shared interests.
RELATED Ventures
Current Initiatives
