Alternative Financial Products
What and Why
The Council is using its expertise in income and asset development and strategic partnerships with organizations in alternative financial product development to provide low-cost, consumer friendly financial products to low-income people. The primary focus is a low cost Alternative Refund Anticipation Loan (ARAL) product, an alternative to the costly loans provided at for-profit tax preparers, often costing filers 10% of their tax return. The ARAL product has been demonstrated as an entry-point into financial education and banking. The Council is pursuing partnerships with local banks, credit unions and non-profit product developers to pilot the ARAL at free tax sites in Alameda County with potential Bay Area expansion.