MADISON, WI, November 17, 2011 – Only a few people ever achieve liftoff of the astronautical kind, and one of them spoke last week to the group that is turning the Filene Research Institute i3 innovation LIFT into reality.

LIFT is being tested as a way to improve repayment behavior and financial capacity. Guest speaker and astronaut Janet Kavandi, Director of Flight Crew Operations at the Johnson Space Center, spoke to Filene and five partner credit unions during the launch of this i3 idea that provides incentives for timely loan payments. The University of Wisconsin-Madison's Center for Financial Security will study automobile loans to 1,200 LMI consumers with subprime credit scores, with the results to be published in 2013.

The LIFT is supported by a generous grant by the Center for Financial Services Innovation (CFSI).

“It is a fantastic experience to see an i3 idea get into the field for testing,” says Denise Gabel, chief innovation officer at Filene. “The LIFT program will provide credit-challenged consumers with the help they need, while managing the inherent risk in doing so.”

Credit unions piloting LIFT during its research phase include:

Del Norte Credit Union ($392 million, Santa Fe, NM) Industrial Credit Union ($144 million, Bellingham, WA) Innovations Credit Union ($148 million, Panama City Beach, FL) Public Service Credit Union ($1 billion, Denver, CO) Vermont Federal Credit Union ($330 million, Burlington, VT)

Astronaut Janet Kavandi spoke to the assembled group about her experiences in space on three different missions and about how to plan, train for, and execute a complex mission. Credit unions piloting LIFT face all of these challenges as they recruit and test this innovative loan program with more than 1,200 consumers.

The Filene i3 innovation team behind the LIFT idea comprises: Shelly Berryman, SchoolsFirst Federal Credit Union ($8.8 billion, Santa Ana, CA); Matt Henry, Elevations Credit Union ($1 billion, Boulder, CO); Jackie Edwards, Connexus Credit Union ($351 million, Wausau, WI); Mike Kenzie, Patriot Federal Credit Union ($432 million, Chambersburg, PA).

Participants (from left to right): Matt Davis, Filene Research Institute; Lance Potter, Vermont Federal Credit Union; Susan Heneman, Public Service Credit Union; Astronaut Janet Kavandi, NASA; Matt Vance, Industrial Credit Union; Leah Gjertson, UW-Madison Center for Financial Security; Jason Sherrill, Inetsolution, Inc.; David Southall, Innovations Credit Union; and Denise Gabel, Filene Research Institute.

The non-profit Filene Research Institute is a consumer finance think tank serving the North American credit union system of $1.3 trillion in assets and more than 100 million members. Filene publishes objective research and fosters consumer-focused financial innovation. The Institute collaborates with leading researchers and academic institutions worldwide.

The Center for Financial Services Innovation (CFSI) is the nation's leading authority on financial services for underserved consumers. Through insights gained by producing original research; promoting cross sector collaboration; advising organizations and companies by offering specialized consulting services; shaping public policy; and investing in nonprofit organizations and start-ups, CFSI delivers a deeply interconnected suite of services benefiting underserved consumers. Since 2004, CFSI has worked with leaders and innovators in the business, government and nonprofit sectors to transform the financial services landscape. For more on CFSI, go to www.cfsinnovation.com

The Center for Financial Security at the University of Wisconsin-Madison, www.cfs.wisc.edu, was founded in 2008 by the School of Human Ecology (SoHE). The overarching theme of the work of the CFS is to research and develop programs to help policymakers and practitioners advance financial capacity in vulnerable populations.

###