CFPB FinEx webinar on Workplace Financial Education NWX-CFPB HQ August 24, 2017 1:00 pm CT Coordinator: Welcome and thank you for standing by. At this time all participant lines are in a listen only mode. After today’s presentation, you’ll have the opportunity to ask questions on the phone and you may do so at that time, by pressing Star then 1. Today’s conference call is bSeing recorded. If you have any objections, you may disconnect at this time. And now I will turn the call over to your host for today, Ms. Irene Skricki. Ms. Skricki, you may begin. Irene Skricki: Great. Thank you very much and welcome everybody to our FinEx webinar today on the topic of workplace finance education. We’re very excited to have all of you joining us and we will have both a couple of CFPB speakers and also a special guest speaker from TD Bank, to talk about some of the work they’re doing. So it should be a great call. I will start off with my usual slides just to get everyone on the same page. First, just a disclaimer we have to do as government employees, which is that this presentation is being made by CFPB representatives on behalf of the bureau, but it does not constitute legal interpretation, guidance or advice of the CFPB. And any opinions, reviews stated are the presenters’ and may not represent the bureau’s views. And we also are not affiliated with or endorsing any of the speakers or entities participating in this presentation, that are not affiliated with the bureau. So we’ve gotten that out of the way and we can get onto the more interesting stuff. I know that most of you or many of you, are probably familiar with the bureau and know what FinEx is, but I’ll say a few words to get everyone up to speed and also to let additional people sign in to the webinar. The CFPB is a relatively new federal agency whose mission is to help consumer finance markets work by making rules more effective, consistently and fairly enforcing those rules, and empowering consumers to take more control over their economic lives. And it’s that last piece about empowering consumers and consumer education, which is the work that we will be talking about today on this webinar. Just so you know, the folks on this call are from the Office of Financial Education, whose mission is to educate and empower all consumers to make better informed decisions. But we also have sister offices here at the Bureau that work with economically vulnerable consumers, older Americans, service members, and students and young consumers. And they are all also working to help consumers, and we work closely with all of those offices. One other word of background is this is a very busy slide, but I just want to make sure people know what FinEx is, and if you’re not part of FinEx, to encourage you to sign up. The CPFB Financial Education Exchange is really our way to communicate with the financial education field, which we mean very broadly. We mean housing counselors, credit counselors, financial coaches, anyone who’s working with people on financial decisions. So it’s a very broad definition of financial education. And we want to both get our materials out to all of you and also to have opportunities to learn back from you, through surveys and meetings and things like that. We do regular monthly webinars. We have a monthly newsletter. Obviously this webinar is one of the webinars. We do convenings and other things. If anyone on this call has not been getting a monthly newsletter that says CFPB FinEx News and Updates, and you would have received one about this webinar, last week. If you have not been getting those and would like to, I encourage you to sign up, which you can do by emailing the address that’s at the bottom of the screen, CFPB_FinEx@CFPB.gov, CFPB_FinEx@CFPB.gov. You can also send questions about anything to that - well not about anything, but anything relevant to financial education, to that box. And I will note too that I ‘ll say this upfront, if you want a copy of this PowerPoint that we’ll be using today, you can send it to that email address. If you send it to me through the webinar chat box or Q&A box that will go away at the end of the webinar, and I can’t write those down while I manage this, so just send it to that email address and we can get you copies of the slides. Okay, so that’s FinEx, so please sign up. And you’ll see this address again, the email address will be up on the screen at the end of the webinar. Quickly, we have an inventory of all of our resources for financial educators. You can find it at our page, www.ConsumerFinance.gov/Adult-Financial-Education. And I encourage you all to look at that. It’s a quick screen shot of that Page that I’ve put up, Resources for Financial Educators. And we have a LinkedIn group you can join if you’re interested in posting your own materials and seeing other posts from other organizations about financial education. So that’s our standard background. I just wanted to make sure everybody kind of knew who we were and what we’re doing. And so now we will turn to our topic of the day. I’m very excited about this. Workplace Financial Education. What we will do is we have two different new resources from the CFPB that we’re going to describe. First, my colleague, Laura Schlactmeyer, will talk about a new toolkit on workplace financial education, that was done jointly with the Financial Services Roundtable. Secondly, I will speak about a study we released a month or two ago about how employers and financial educators for that matter, can help workers prepare for retirement decisions before the point of retirement, so they can make more thoughtful decisions. And we’ll share that little bit of research. And then lastly, we have our guest speaker, Andrea Johnson from TD Bank. She is the head of financial education there. So we’ll do that and then at the end we will take voice questions. If you have any questions during the presentation, clarifying questions or whatnot, you can use the Q&A function in the webinar, the WebEx. I’ll be monitoring that and if I see something that we should stop and get answered quickly, I will do that. Otherwise you can continue to ask questions that way or via voice questions at the end. We’ll open it up at the end. So that’s all the logistics and I’m now very happy to turn it over to Laura Schlactmeyer, to talk about workplace financial wellness, a resource guide. Laura Schlachtmeyer: All right. Thank you so much Irene. Hello everybody, good afternoon. I am excited to be here and talking to you about the new resource guide on workplace financial wellness. If you have tuned into FinEx webinars before, you probably have heard us talk about financial wellbeing. But in the workplace, the term that’s often used - the term that’s caught on is really financial wellness. I will show you a little bit about what’s inside the resource guide. This guide is a booklet that was created as part of a collaboration between, as Irene said, between the Bureau and the Financial Services Roundtable. Businesses are quite interested in implementing financial wellness programs because they’re very aware of the consequences that financial stress can have on their employees and their workforce. So employers tend to track some key metrics that tell them in that form, the kinds of pain that their employees are feeling. For example, employees under financial stress tend to take time away from work and that just makes sense because it does take time to deal with money problems, it takes time to deal with solving the problem and it takes time to deal with the consequences of that problem. For example, you might think about an employee with an unexpected car repair. The employee faces the time and cost of the repair but also the time and cost of finding an alternate way to get to work and an alternate way to get the children to school and so on. So this is something that companies pay a lot of attention to. Also employees under financial stress, tend to incur higher healthcare costs and employers keep a very careful eye on that. And down the road, employees who are stressed, tend to feel unprepared to retire, so another reason why this is a very important issue for employers in looking at their workforces. So the FSR got its member companies together and had a group discussion about what different companies are doing, what kinds of problems they were trying to solve, what specific efforts have worked well and what they were doing to measure results. And then brought us all together to create the workplace financial wellness resource guide. So let’s take a look just at the main ideas that are covered in there. And we have laid this out in eight steps. These areeight steps that employers can take, once the decision has been made to implement the financial wellness program, here is how to organize your thinking and how to walk through the steps. First of all, it is important to focus on your human resources strategy. Certainly different organizations have different HR priorities, so at the beginning of this process just make sure to draw a tight connection between the financial wellness program you’re proposing and what’s important to the organization’s overall success. The second principle or the second step, is to identify possible internal challenges, because it’s not always easy to implement a new program. For instance, maybe you need to make it easier for frontline managers to add financial wellness to their priorities, making sure again, that the alignment with organizational goals is very clear. The third step is to understand your unique workforce. And that’s a very broad statement. What we mean by that is to understand where your employees are starting from. One way to do this is through a survey. For example, through the financial wellbeing scale that the bureau offers. You might be familiar with that from past CFPB FinEx webinars. But any sort of survey that helps you understand where employees are as you begin this program. Fourth, you can use that information then to decide which areas of financial life you want to focus on. What was interesting as part of this process, is you have to consider that the FSR is made up of businesses in the financial services industry and even they agreed that it would be a mistake to assume any level of financial knowledge or interest, among their employees or any workforce’s employees. Fifth step in the resource guide, is to take a look at the areas where you are already offering solutions. There’s like your retirement plan or your insurance benefits. And have a conversation with your current vendors about whether there are additional services that they offer or educational resources that are available that you could add to your program with minimal time, effort and money. And sixth, since you started by listening to your employees back in step 3, you might discover there are places where you do need to expand what you’re offering. So after you have had those conversations with your existing benefits and service providers, now is a good time to start looking at other resources, other businesses, certainly other publicly available resources in your area, state and local, federal government resources, things like that, that can broaden what you’re offering. Seventh, it’s time to think about how you deliver the financial wellness resources to your employees, whether your employees are geographically dispersed or maybe it’s easy to get them all in the same room. Do you have existing contact points that are natural openings like maybe new hire orientation or at annual events where that financial wellness conversation could be a natural fit? Take advantage of times when you can connect with employees at relevant times and then make sure the information is there when they need it. And then last, you’ll want to know whether your program is having an impact. Certainly you should be looking at some of the metrics that I talked about earlier - employee absences, healthcare costs, retirement readiness, that kind of thing. But you could also readminister your survey, the CFPB financial wellbeing scale, something like that, to see whether the impact of your program is being felt in an employee’s day to day life. So that is the core of the resource guide itself. And then within the resource guide there are a couple of other tools there. There’s a planning worksheet and that’s a page in the booklet. You can use this as a guide to your implementation process. You can ask yourself and your colleagues, questions like how does your human resources strategy support the organization’s overall strategy? And answering these questions can help you bring those eight steps into focus at your organization. Another section of the resource guide that I wanted to call to your attention, is the compilation of resources that’s available. As I talked about before, if you already have relationships with benefits providers and other service providers that you can talk to, ask them certainly, about expanding their efforts into financial wellness more generally. But there are plenty of topics that you may want to offer beyond a typical benefits menu. Your employees may be struggling with debt collection or having trouble building up emergency savings, worrying about student loans or medical debt. And that’s where it might make sense to browse some resources that we’ve compiled here, as well as additional organizations in your area for financial education or coaching services. And last, I wanted to tell you a little bit about this high-level one-page infographic. Now this just sums up the steps along with a few facts or statistics. And those can help you make your case for adding financial wellness in the workplace for example. Seven out of ten human resources professionals indicated that personal financial challenges have a large or some impact on their employees’ performance. So that’s a good argument in favor of having financial wellness in the workplace. We’ve made this available and you can print it out, keep a copy around so that you can share the eight steps and keep them in front of you. That is my introduction to this workplace financial wellness guide. You can see it at the www.ConsumerFinance.gov on our site, as well as through the FSR if that’s an organization that you have access to. Irene Skricki: Great. And I will note that normally this type of resource would be on the resources for financial educators page that I highlighted earlier. That is about to be relaunched, so it’s not there right now until relaunch. But it is on our Web site. At a minimum, you could always just search workplace financial wellness and it should come up. So let’s see. I’ll just go to the next Slide. So this is Irene. I’m going to present the next section. I also wanted to note that I know a lot of people on the call are financial education folks who might not be employers. Some of the tools we’re sharing, certainly what Laura just shared and to some degree the study I’m going to talk about next, is aimed at people who are employers or plan - administrators of retirement plans. But I think that a lot of the organizations that you work for, of course obviously our employers themselves because you all are working for them. And there may be some employers or others on the phone. But also, a lot of the things that we talk about I think there’s a role for financial educators to either approach local employers and suggest that they maybe want to do this work for their employees and a financial educator could offer to partner. But bringing the guide that Laura was just talking about, might be a way to promote your services to employers or to employees nearby, that might benefit from that help. And also some of the strategies that we’ll talk about in the study I’m about to do now, that a financial educator could use even though they’re not functioning as an employer in that moment. Some of the things you can kind of use the lessons from these resources we’re talking about, even as an educator working with the consumers, particularly for the study I’m about to talk about. So even if you’re not listening in on as an employer, a lot of these I think resources and ideas, can be helpful. I am now going to transition and talk about a study that we did about how to help employees manage their funds as they approach retirement, their retirement funds. This was part of a project that we did to look at financial decision making challenges faced by consumers and work from there to design and test strategies to help people manage those challenges. We did this through a contractor and a private sector firm that worked with us - Behavioral Labs. And HelloWallet is a personal finance tool - a company that runs a tool that worked with us to actually test some of these strategies. So I just wanted to acknowledge their role here. And the screen shot you see up there is the report - a full report on this that you can access on our Web site. This one is on the - maybe it’s not yet actually on the soon to be relaunched page. But again, it is all on our Web site. So just quickly, the consumer challenge we were looking at is that it’s hard for people to make decisions around the time of retirement for a number of reasons. And all of this I think will probably be not surprising to any of you. The first thing that a changing retirement landscape has put greater responsibility on the individual consumer. Compared to previous generations who had to fund benefit plans, meaning pensions, consumers now very often have more responsibility for managing their own retirement savings. And they also may need to be planning for longer potential lifespan, to sustain their quality of life through retirement. And that is a challenge. Secondly, there are many market players and a wide number of choices. So when you’re trying to make a retirement decision you’ve got the human resource departments, the administrator of the retirement plan, the financial institutions that may be behind the plans, offering funds to invest in, other investment firms, financial advisors. There’s a whole range of different players that a consumer needs to potentially interact with. And there’s a large number of different types of products and services and they are complex. And they may be difficult to compare, hard to digest information here. We’re talking about the range of transaction fees, advisory fees, minimum investment requirements, rates of returns, other things that someone might want to consider in trying to determine how to manage retirement funds. And that information is not always presented in a clear and uniform way such that you can easily compare. And lastly, limited timeframe - as you approach retirement, consumers have to take a number of actions that impact the long term value of their investments and their late life financial comfort, while also juggling all the thoughts and decisions and issues you face as you leave a job and think about what you’re going to do in your retirement life. So it’s a complicated time for folks and that presents a challenge in making retirement decisions. Then there’s also a lot of complicated and often irreversible choices you have to make at that time, such as whether and how to change investments between different funds, whether to take a lump sum and annuity, or rollover on a retirement account or keep it with the employer. How to handle assets like homes, when to start claiming Social Security, whether or not to work with a financial advisor. So there are a lot of things people have to deal with, some of which are not easily changed. Decisions aren’t easily undone later, which adds to the complexity. And then lastly, these decisions are complicated as well, because at retirement consumers often can’t get help from previous employers. They may be able to talk to their current employer, but they may have funds or retirement savings from previous employers. They may not be able to easily go back and ask for help. It’s hard for them to predict how long the retirement savings need to last. That’s an unknown for everyone. And then each of these decisions can be complicated and consumers may feel overwhelmed and avoid making decisions. There’s quite a bit of research on most of these factors I’ve just talked about, which are laid out in the research paper that I referenced at the beginning. So this is a difficult time as people approach - an exciting time but a difficult time as people are thinking ahead to retirement. And one of the things that our research observed, and many have observed, is that people often make better decisions when they’re further out in time horizon, when you’re not overwhelmed in the moment and can think ahead. And so the solutions we wanted to test in this study was to try to encourage people to make retirement decisions earlier, decisions about how they’ll manage their funds in retirement at an earlier point, and plan for that ahead of time when they can more thoughtfully think through the options and also to better explain and help consumers visualize the choices they’re going to make. What we did is complicated, so I’m just going to talk about a few pieces of this. But we and our partners tested simplifying and visualizing complicated information about retirement finances for consumers. There are two things we did that I’ll say more about in a minute. And secondly, this idea of thinking ahead - allowing people to commit to a plan in advance of retirement in order to focus on long term rather than short term goals. A plan that you can always change, but at least you’ve thought about it ahead of time and precommitted. And so these were the things that we tested in this study. This was a combination of lab and real world testing. In some cases, it was user testing where our consumers came in and looked at mock ups and said what they liked and didn’t like. In some cases they were actually getting emails through HelloWallet, the partner we worked with, that actually allowed them to make decisions. It was more of a real world setting. But this was not an impact evaluation. We weren’t looking for whether consumer behavior changed in the long run. This was really meant to get a sense of consumer preferences or consumer insights. So it’s suggestive of preferences and demands, but we’re not - it’s not intended to be statistically significant. So just keep that in mind. But it certainly gave us some useful insights into ways we can frame retirement information for consumers. I’ll show you a couple of examples. Specifically, in trying to help consumers think ahead and plan for potential issues in retirement savings and to have a more conservative drawdown strategy so that their money lasts, we wanted to make sure people thought about potential emergencies and medical emergencies. And wanted to use visualization to see if people would respond more positively to the message and potentially take action. And so up here are three screen shots of emails that went out to HelloWallet customers, to encourage people to think in their retirement budgeting in the future, about the need to have some emergency savings as part of their budgeting. And we wanted to make that case by showing the tradeoff that if you don’t do this, you might forego other things that you’d like to do in retirement. There was a test of simply avoiding painful tradeoffs of retirement with no visuals. The middle one of course, is the - what we really are hoping will be more effective, which is giving people a visual of the crutches versus the beach vacation. The third was a control just to see in case visuals to themselves actually was the thing, not the visual specific to that decision. So some pretty balloons. It’s a nice picture, but not necessarily related to retirement. I just wanted you to see those, because this is about visuals, it’s about getting people’s attention to the issue to then take action. And we found, not surprisingly, the consumers planning for retirement, were most likely to log into their account, to open an email and log into their account after viewing emails containing text and visuals, especially one relevant to the decision that they were being encouraged to think about. So again,it’s probably not surprising to anybody that you make it more interesting and they are more likely to follow through. But it was I think a useful example of how that could happen. We tested some other iterations of this around other decisions and other actions, but I just wanted to show that one as an example. The second thing we did was to allow people to pre-commit or allow - test the idea of pre-committing. People couldn’t actually do that in this lab test. But this form - I know this is hard to see. I’ll show you a little closer up in a minute. This form tries to help people think ahead of time and say this is what I think I would like to do. They can change it at the time of retirement, but also make the choices straightforward in terms of the pros and cons, and order them so that the, what arguably would be the least desirable, which is cashing out your retirement account, is shown last, because people tend to pick things at the top of the list. So now I’m going to show a slightly closer up, which hopefully you can see if your screen isn’t too small. But the idea is that rather than having a complicated form with all the different choices they could make, it gives you four options. You could either rollover the IRA, rollover the 401(K) 403(b), leave the 401(K) 403(b) where it is or cash it out. This would have to be customized potentially, to the different options and employer might have. But you can see in small print here, the pros and cons. It tells you what’s easy to manage, where there’s more risk, where there’s more things that you have to do. So it’s meant to make the pros and cons easier, so you can make the decision well before you retire and then at time of retirement, confirm whether you want to do that. In this case, consumers really liked the descriptions of options and the projections. There was some additional information about actual projected retirement income that I’m not showing here. And people like the instructions on the form highlighting their ability to change their commitment at any time. Some people weren’t comfortable about pre-committing because they thought that they might have different decisions at a later point in time, so that’s a caveat. But I think the general design of this worked well, and again, that may offer some insights to those of you who are communicating with consumers, about simplifying options and making the pros and cons clearer and just generally making a more straightforward choice. The next thing we did is similar. This is at point of retirement, when someone has to decide what to do with their retirement accounts. Again, I’ll show you a closer up version of this in a minute, but this used the same strategy of providing a simple title, some pros and cons with the least desirable choice at the bottom, to encourage people to make decisions that were likely to lead to a more stable long term retirement income. A nd on this slide here, I’m showing you this is the chunk in the background, on the left, is actually of a sort of anonymized withdrawal form, a more traditional retirement form. You can’t see too much of it here, but essentially it’s got a lot of complicated questions: "you can check off payable to me as a onetime withdrawal, amount of non-ROTH, amount ROTH, contribution source, net amount, gross amount, 100% withdrawal with a portion payable to me in remaining balance as a direct rollover." And this goes on for two pages, at least, in very small print. And I personally have a hard time figuring out what exactly one would do with this form. The simplified form again, is taking the same information you see on the left and putting it on the right in this case, five simple options. This was customized to a particular employer so it might be different, where you can see the different options; all the paperwork related to that, which is all in the same place on the first form I have up on the screen, is elsewhere. So once you’ve chosen your option you’d then go to the place that we fill in the details you need to fill in. But you don’t have to see it all there in a confusing way. So again, the idea here was to make it simpler. Some of this is just good design and straightforward language, and to really make the choices clearer and easier and more visual for people. And here again, all the consumers in the user testing strongly prefer the simplified withdrawal form over the standard form. They reported the form was clear and easy to use. They liked how the options were presented. They liked that the management options were easier to understand. And they felt that this would be much more advantageous for them to use. Again, this was just tested in a lab setting, since it wasn’t actually set up to be done an actual employer at that point. And then lastly, we’ll just note that we also - for those who pre-committed and again, this is all just in a lab setting, there was a confirmation form where you again saw the choice you made, you can see whether you want to move forward with that pre-commitment choice or not. And then it gives you some initial next steps and there’d be additional pages to this in little small print, but you can see it tells you the four things to do to make your option happen in terms of what to do with your retirement funds at the point of retirement. And again, consumers like the information. They like that they felt confident that they could follow through or change their mind at the point of retirement. Most actually intended to continue with the option they had chosen. So I know that was a lot of kind of running through visuals and forms, but the implications here, again if you are actually an employer or working with an employer, you could bring these sample forms and say hey, how about we make our forms more like this? And so an employer or a retirement plan administrator could adopt and scale the approaches tested in their work. Also organizations or companies that are writing personal financial management tools, could also use these approaches, including the emails and visualization techniques mentioned at the beginning. Then lastly, for those of you who are financial education professionals and are not listening in as an employer yourself, I think some of these lessons about how to make the information simpler, how to lay the choices out in a way that’s more streamlined and the pros and cons or the risks and benefits are more easily laid out, are things that we could all do in our work as financial educators, either in working with consumers who were thinking ahead to retirement or in other areas as well, in other decisions people need to make about finances, the ways that we can use these ideas about how to simplify and visualize choices to help consumers not be overwhelmed, I think is something we can all potentially apply, in our own work. So I will stop there. I just want to mention in passing, we didn’t put slides in, but for those of you generally thinking about workplace financial education, the Bureau does have many other tools. We have a planning for retirement tool that helps you decide, or helps see the implication for different Social Security claiming ages. We have some other things related to reverse mortgages, lump sum pension options and generally, other tools for managing credit and budget and things like that, all of which could be used in a workplace setting. So we didn’t want to run through all those, but want to make sure you know that there’s a lot of this stuff that we have that might be relevant as well. So I am going to stop there. That was a lot of talking. And we are going to turn to our guest speaker. Again, we’ll take questions at the end. Although, if you have any you can - now that I can look at my screen again, I will see if there are any questions coming in. But now I will turn it over to Andrea Johnson. Andrea, we are very, very excited to have you here, and hear about the great work that TD Bank has been doing in this area. So I will turn it over to you. Andrea Johnson: Thank you so much Irene. I really appreciate the introduction. And thank you all for inviting TD Bank to participate today. It’s always a pleasure to discuss this topic with people who understand its importance on individuals in our economy. And so it’s really a pleasure. At TD we started with the premise that life can change in an instant. And finances are directly tied to navigating life in and out of the workplace. And as we researched and responded to our own customer needs, we realized that our employee base must reflect the same needs as well, because they are members of society and we do not make an assumption that just because we work at a financial institution that we understand financial skills and we have financial knowledge in every one of our employees. And quite honestly, many of our employees are in what we call the back office or support roles. And those folks are not on the front lines, they’re not working with financial products per se, with customers. They’re not giving advice on those products. And they sometimes have questions on how to use them or how to take care of their own finances and really learn for the future. So you can go to the next slide Irene, but this really was born out of our research to our customers and just realizing that they’re a subset of this population. And many of you on the line may be thinking oh, TD Bank, you know, is a large organization so you must have a lot of resources. But quite honestly, that all said, we activate this on a very tight budget, but we still have excellent feedback. And we leverage what we do to supplement budget is we leverage incremental benefits within our internal and external partners, to build our program foundation. And we don’t feel like we’re finished here by any means. We feel like we have a ways to go. But we feel like that our employees now have access to some information that they didn’t have before. So I’ll talk you through that a little bit. In 2013 we really started looking at this and we started increasing internal communications about financial education and support for our employees. We started with some pilots and things like that and we’ve evolved to where we are today. so today thousands of TD’s team members participate lots of different ways, including we have no cost webinars that we host for our employees year around. We bring in external financial experts really and I’ll go into that more in a moment. We use both employee only, so these employee benefits packages that we all get in some cases, where there are some employee only resources. And we leverage those and we promote them. And customer facing tools and resources - we actually promote those as well, as a good source of education. We started I would say maybe about two years ago, additional virtual events. I’ll get into that a little bit more. But we actually just have done our earliest in person event, so I can talk to that as well. And what brings this all together is our culture of volunteerism. We have a very strong culture of volunteerism and financial education volunteerism is a big part of it. And our local volunteers not only go out in the community and teach financial education, but when we have employee events - bring your kid to work day, all of those kinds of fun things, they spend their time with employees and their kids, delivering financial education as well. So that - it’s a really strong connection between our employee program and our volunteer program and I would also say there’s an extremely strong connection between our employee banking program that we now, as of a about a year, we now incorporate financial education to support our team members, with their own financial decisions and accessing service - accessing financial services in the workplace as well. So Irene, if you want to move onto the next slide, I actually threw in some research that we did last year and we did a survey of - by generation, about their learning needs in this space. And we’ve also done some internal surveys and we have some always on feedback platforms that we use as well. But this study really told us what do people want to learn and is there differences in the topics that people want to learn? And we kind of took this study and we married it with some of our feedback that we’ve received. And we curate each year, we take a look at what topics we’re going to offer for the year, which ones we’re going to keep, which ones we’re going to unload and try something new. We go back to this survey from time to time just to remind us what people want to learn. Some things I’ll call out on here. So retirement is heavily weighted. We make sure that our content around retirement is timed appropriately and when people are making those kinds of retirement decisions. So we consider investing at work as being retirement, so we kind of put all of our eggs in that basket. And then credit is another very popular topic with us. So we do a lot of credit education as well. That’s probably the topic that we talk about the most, probably equal with retirement. Just making those decisions and understanding your credit score and really understanding what the decisions you make day to day, how they impact that credit score. And then if you look at the bottom part of this survey, the person or the entity that’s relied on the most for financial education and financial advisor, parents, the internet, it all tops it but, you know, where is workplace on here? So, you know, it might be that in the future, you know, we see workplace pop up on a survey like this if we’re all doing a good job. And we hope that that’s the case at TD because obviously, you know, you get your paycheck here. You make a lot of financial decisions tied to your income, obviously. So this is something that we feel really passionate about to make sure that we’re giving our employees the topics that they need as best we can, with the resources that we have available. And you can actually find the full survey results on our Web site and the link is at the bottom of the slide right there. Irene, you can move onto the next slide. So here is like the meat and potatoes. I bucketed it into three sections in terms of how we really engage with our employees. So exclusive employee resources at no cost - so we want to make sure that we promote and make available all of the educational resources that we have at our disposal. We leverage our employee assistance program quite heavily for this purpose. Our HR team owns that contract. They were gracious enough to - few years ago and they let us know that as part of that contract there was educational credits that were going unused. And there was a - of lessons about all kinds of interesting topics, but there was a huge catalog of lessons on financial topics. So we asked and said if you’re not using those educational credits, do you mind if we use them? So we have taken over the educational credits for that contract, for the most part. Each year we’ve worked with our HR partner that manages that relationship. We re-attest that we had access to those credits. We see if there is an updated catalog and we select the courses for the year. I have a team member who works directly with that organization. We are subject matter expert for these webinars. We Adobe hosted in an Adobe room so it’s really economical. And we’ve done that for quite a few - for a few years now. That was our first pilot, were these webinars. We found that through our online surveys, we do online surveys for our attendees for these webinars. Feedback on content on the experience itself, the technology used, we consistently get very high results since inception. We have continued to do that and we also added our 401(K) provider, because guess what, we found out there were educational credits tied to that contract as well, that were being unused. So we (unintelligible) as well. And we’ve actually added one more which I’ll talk about in a moment. So those are very economical for us to put on. Some of the more recent topics that we’ve done, you can actually see up in the right hand corner of the slide, we actually have an internal platform. I know many organizations may not have that. We happen to have it so we leverage it. And it’s called TD Connections. And you’ll see a little blurb from one of my team members that he posted out on Connections, to his followers and our community members on Connections, that we are presenting two webinars this summer. July and August we were hosting financial - higher education and working with customers in financial crisis. So those were two good topics and they were newer for this year. So we’ll be assessing those when we take a look at the calendar for next year. I think communication is really important. We try to have special communications around financial holidays, we call them, like Financial Capability Month or Get Smart About Credit Month or Credit Awareness Month. We also have done contests in the past. We’ve done online scavenger hunts, so virtual scavenger hunts. So our employees can actually navigate and find their retirement information and find their access to educational tools. We’ve given out Fitbits and gift cards to reward them. And then we started this year a new employee on the team, started this year with hosting some financial education events. So this is a new element. And our program manager actually led this and we hosted an event in April, in partnership with our diversity business resource groups. It was with women in leadership and minorities in leadership and with our shared services team. We hosted an in person event with an external speaker. She is highly recommended. And our team member, found her and brought her in. We got the most amazing feedback from this event that we’re hoping to be able to do that in the future as well. We have a little picture at the bottom of that slide of the event itself. We had to increase the capacity of the event I think three times, to accommodate all the need. And we ended up selling out. And then for people that were not in our corporate hub and that couldn’t attend in person, we did a live chat, so an online chat in our social media site, with this external expert. We did that that afternoon. So the event was in the morning and the live chat was in the afternoon. Highly successful and I’m hoping that we can pull that off again. Oh, another thing with our webinars that I did forget to mention and I want to go back to that, we are piloting right now, new hire tellers on our TD Bank team are now required to take two of our workplace financial education webinars as part of their onboarding. So that’s really interesting. And so we’re really interested to hear back from our learning and development partners, to see how that’s resonating with our new hire tellers when we have some scale of responses. The next thing that we do with our employees, is we promote our own customer facing education with our employees. There’s a saying, you know, you have to eat your own cooking. And we want to make sure that our employees are using our platforms, because we know we’ll hear feedback from them if they have enhancements to suggest. And so we have our Finance 101 site which is our www.TDBank.com/financialeducation and that features our TD Bank learning center. We launched that last October. It’s online financial education for people on the go. And that’s powered by our fantastic partner, EverFi if you’ve ever heard of them. They are an amazing organization out of DC. So we encourage them to use it. we encourage them to share it with their families. And we’ll be doing more of that next year as well. We also have a virtual stock market simulator that we provide for classroom use. And we encourage employees to use that, but that’s something that we want to do more around, as well, in the coming year. And then as I alluded to earlier, our employees learn and then they make an impact. Like I said in the beginning, we have a very strong culture of volunteerism. We have a network of volunteers and financial education volunteerism makes up if not half, maybe more of the volunteer hours that happen, each year, in TD Bank. And so we will do a public service announcement during our employee webinars and recruit volunteers. We’ll encourage them to share this information and then we also all of our stores have their own tablets in store and we’ve embedded all of our customer facing tools on that tablet. We want to make sure that they share those tools with our customers and then use them themselves. So it’s kind of marrying the advice to our customers in the volunteerism, with their own education. And it’s kind of creating this - almost this ecosystem here. I don’t know if I want to call it that yet, but I think we’re on the right track. So Irene, you can go to that last slide, I’m sorry, second to last. So - very quickly here with the last two slides. So our employee banking program I alluded to earlier, was really enhanced over the last year. And at TD Bank we believe that banking is about helping people achieve their financial goals, obviously. But it’s about listening to people’s needs, understanding their challenges and working with us every step of the way. And that goes for our customers and our employees. In our ongoing effort to build our better bank, we continue to seek opportunities to improve employee offers and benefits for them, and we’re really committed to helping them achieve their goals. So we really try to give our best to our best. And so we’ll see a few things here that are probably pretty typical for a financial institution to offer their employees. I want to call out one that is a bit atypical. And that is a free monthly credit summary. Last September, so almost a year, we became the first financial institution to partner with TransUnion to provide a monthly free credit summary to all of our US employees. We’ve had almost 22,000 visits to this portal since it launched about a year ago. And we also hosted webinars through our webinar program. We brought TransUnion folks in to do live demos when this program launched last year. This platform gives our employees access to their credit summary and their score every single month. And they can set up alerts and all kinds of fun stuff. So getting that through our workplace seems to be a really nice fit. So we’re really excited to partner with the employee banking team on that. And then Irene you can go to the last slide. And so I would just suggest to all of you (you can see some pictures down at the bottom, of some of our employees. There is one from our event and some of our employees that work with some of our customers) really take a mindful approach. You want to find out what matters most to the employees and when and how to engage. We’ve made changes over the years and we’re going to continue to engage with employees. We have to consider our contact centers, people that may be traveling for work, different shifts. We have to think about all of these different impacts and making sure that these - that we have a variety of resources and that they’re accessible from the road or from the desk or from home or anywhere and they have a variety to choose from. I would definitely highly recommend leveraging your organization strength and partnerships. You’ll be surprised about how many people are passionate about this process and are willing to pony up a little bit of bandwidth to help out the cause. And we also found that things like take your kids to work day, are great venues to incorporate some two generational messaging around financial education. We’ve done that the last two or three years consistently. So if you can take that approach, parents really like hanging with their kids and talking about the kids - talking about their kids, and then we can encourage them to talk about their - with their kids about their finances. So I’ll leave it at that and turn it back over to you Irene. Irene Skricki: Great. Well thank you very much Andrea. That was wonderful. I’m just going to go to the last slide so people can see the resources. So that was terrific, to hear about all the things that you guys are doing. You’re quite an inspiration. So what we’ll do now is we have a few minutes for questions. I’ve had one question and one comment come in through the Q&A, which I will read in just a second. But first, let me let the operator tell you how to do voice questions for those who want to do that. Operator, can you tell us what to do? Coordinator: Certainly. If you would like to ask a question over the phone at this time, please press star then 1 on your phone’s keypad, please unmute your phone and record your name at the prompt. If at any time you are still in queue and your question has been answered, you can remove your request by pressing Star 2. Once again for questions over the phone at this time, please press Star 1. Irene Skricki: Great. So while we let people do that who want to ask voice questions, and again you can still do the Q&A function, let me - first I’m just going to read a quick comment that we got from somebody, really for you Andrea, which said great slide about the learning needs by generation, the survey results that you showed. And it was very fun just quickly eyeballing the different interests and sources of information for the different kind of age cohort that you showed. Andrea Johnson: Yes. If you liked that one slide, you’d love the full survey. Definitely check it out on the Web site. It’s great. Irene Skricki: Great. And actually on that note, because some of them immediately asked for the link again, if you would like to get the PowerPoint deck from us with all the slides you just saw, send an email to the FinEx box. Don’t do it through the Q&A function, because it’ll go away once we hang up. And that is - it’s up on the screen now actually. It’s CFPB_FinEx@CFPB.gov. And just say you’d like a copy of the slides. And also, when I send that out, I would send out again, the links to some of these resources. They went out with the newsletter, but I know not all of you got that newsletter. So I’m going to read one other question we got, before we ask for voice questions, which is this. And this is really for Laura. This is about the infographic, I think that was your last slide, the infographic. And the question is can we share this infographic on our social media channels for credit CFPB? Thank you for the great info. Laura Schlachtmeyer: Yes. The short answer is yes. And I do want to thank Andrea and also our partners at FSR, for helping us with that infographic. Andrea was part of the team who put this together with us, and also (Judy Chapa) who was very closely connected with the development of this content. The infographic, I would not pull it from the Slide. It will look better if you pull it off of our Web site, because that’s in a nice high res JPEG form. And I would pull it from there. But please do, yes, use it on social media, share it with people who are interested in this area. And you can - yes, use it as you would. Thank you. Irene Skricki: Great. Thanks. And just a couple of other things that have come in - one, someone also asked will the recording of this webinar be available in addition to the PowerPoint. And yes, we do record these. It takes a couple of weeks before we actually get it up. Sometimes two to four weeks basically. And it will be on that Adult Financial Education Web site, www.ConsumerFinance.gov/Adult-Finnancial-Education is the archive of all of our webinars. So once it goes up you can listen to this as well. One more question before I see if there are any voice questions - for Andrea, who was the guest speaker at your event? Andrea Johnson: So she is a public person so I guess we can say her name. So it was Tiffany Aliche, A-L-I-C-H-E. And she is the Budgetnista. And she has a huge social following, so I would hit her up on social media, because that’s where she resides most of the time. Irene Skricki: Great. Thank you. Operator, have there been any questions coming in through the voice option? Coordinator: We have had no responses for questions at this time. Irene Skricki: Okay, great. So again, we have another minute, so if anyone has any last minute voice question, it’s star 1 I believe. Coordinator: That’s correct. Irene Skricki: I’m sure the operator will correct me if I’ve gotten that wrong. And again, you can still email for our last moment if you have any additional questions. But again, if you want the slides or have any other questions or the links to the reports, CFPB_FinEx@CFPB.gov. Send that email and I will - I check that box, so I will get it and respond to you. So again, I hope that these things are useful even if you’re not in an employer - if you yourself, are not an employer. I think some of the things we’ve talked about could be useful ways to think about reaching audiences in different settings, folks that you’re working with in financial education settings, your own peers, if you are in your own workplace, where you’re doing financial education. I love the idea of offering credit scores. For those organizations that are already getting credit scores for clients, I wonder if they could also do it for employees. That struck me as an intriguing idea. Let me just check one more time. Any final voice questions? Coordinator: We’ve had no responses miss. Irene Skricki: Okay, great. Well it is one minute before the hour, so what I’d like to do is to very much thank Laura Schlachtmeyer for speaking, and Andrea, for being our guest speaker today, talking about all the great work TD Bank has done. We really appreciate everyone being here and so thank you everyone. Anyone who is not a member of FinEx, remember to just send an email and we will add you to the list to get updates. Oh wait, we have a late breaking question. Let’s see. Okay. Last thing. This is for Andrea. Great employee program. In terms of the employees receiving credit reports monthly, is the employer receiving that information too? What are the privacy implications? Andrea Johnson: No. So we - our employee banking team rocks and our privacy team rocks. So no, TransUnion does it all. It’s a vendor hosted site. We have no line of sight into that. It is very private and employees have their own logins. Irene Skricki: Great. Excellent. Perfect. Well that - I was derailed from my wrap-up there, but that was an excellent final question. So thank you so much Andrea, thank you Laura, thank you everyone for joining us. And again, we hope you will join us for future webinars. They happen the fourth Thursday of every month. Thank you very much everyone. Andrea Johnson: Thank you. Coordinator: Thank you for your participation on today’s conference call. At this time, all parties may disconnect. END NWX-CFPB HQ Moderator: Sharon Mobley 08-24-17/1:00 pm Confirmation # 5093586 Page 1