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Yearly Archives

2016

By CDFIs, CNote

Coverage from TechCrunch

Illustration of paper notes and coins on yellow backgroundToday marks the day when the first financial product based on Community Development Financial Institutions (CDFIs) is brought by CNote to individuals for the first time in history. The coverage from TechCrunch perfectly captures the nature of CDFIs and their social impact mission:

Community development financial institutions are an integral part of economic development in the United States. They support affordable housing, minority owned business and other entities that may struggle to get the capital they need from traditional banks.

CNote’s aim is to democratize finance: we strongly believe that everyone is entitled to the benefits of financial innovation, not just the top 1%. Our first CDFI-based product is the first step in that direction. Soon all Americans will have access to the product and will be able to reap the returns, both financial and social, that come from lending to CDFIs and supporting minority and female entrepreneurs. Through CDFIs, we can all do our part in improving underserved communities across the country. 

You can learn more about CNote and our mission here. Also, feel free to contact our team with any questions at support@mycnote.com.

By CNote

#WHATWENEEDTOSUCCEED

30 billion, 90%, 5 times, 27 dollars, 7%…what’s behind these numbers? On one hand, a grim picture of missed opportunity, on another – a light of hope for our future. Consider the facts:

  • If women scaled as entrepreneurs, $30 billion can be added to our country GDP.
  • Women put 90% of their income into their communities and families.
  • Women have been starting businesses at 5x the rate of the national average.
  • 1 out of 27 dollars of commercial lending goes to women led businesses.
  • 7% of all the venture capital is received by women.

I remembered these facts last week as I attended the Scale Collective event in NYC hosted by Virago, a strategic advisory supporting women entrepreneurs. The event brought close to 100 women entrepreneurs together and was held at the venue located in midtown west, the part of the city going through unprecedented transformation and rebirth, from the area of dark and deserted warehouses into glass skyrises attracting sun light and new life.

I found it to be very symbolic. The movement of women entrepreneurship is gaining momentum, coming out of the shadow and into the light. There are now events, networks, funds, accelerators focused solely on women in business. This progress is remarkable, but we need more. The majority of these efforts are happening locally, organized by one or two women specialized on one problem area. What we’re missing is collective scale, national effort, and change on a federal level.

This is #whatweneedtosucceed is all about. In a letter to a future president endorsed by 80 companies, there is an agenda of items that must be implemented at a national level to promote and create equal opportunities for women entrepreneurs. This is the first call-for-action of its kind. Among many “needs” on the list, there are a few deeply engraved in the mission of CNote and our CDFI partners: to “foster small business lending” and to “create new sources of capital.”

The buzz about women’s potential in business is out there moving in waves. My greatest hope is that these waves reach the ocean. In 10 to 20 year, I hope that our daughters won’t be sitting in the same room, talking about #whatweneedtosucceed but rather sharing their stories of success and celebrating the progress, not knowing the times when it had been different for their mothers.

– Yuliya Tarasava, Co-founder

By CDFIs

Reflections post-CDFI conference

Last week, I had the pleasure of attending the national conference of Community Development Financial Institutions (CDFIs) in Atlanta. CDFIs, as you’ve read in previous posts are the “good guys and gals of finance.” They provide fair capital and coaching to underserved segments like women and minorities in a high integrity, transparent and personal way. While I was in Atlanta, I met many impressive professionals. Their financial acumen, industry prowess and commitment to their community was nothing short of impressive. But what really made me stop and pause was their stories. CDFI professionals never lose site that beyond the spreadsheets, technology and complex modeling that makes their industry sing, there is an underlying heartbeat that keeps them going — the borrowers.

CDFI borrowers have some of the most beautiful and inspiring stories I’ve ever heard.

It made me reflect on my own neighborhood and the propensity that many of us have to take our local small businesses for granted. The place we grab a bagel. The local dry cleaners. The pet shop down the street. These are neighborhood establishments that serve our needs, but behind those storefronts are people – passionate, committed, driven small business owners that started once with a “what if I’ and turned it into a “and so it shall be.”

Most CDFI borrowers had one if not several denials or rejections before walking through the doors of CDFI. And when they are greeted with someone who believes in them, the magic begins. They meet a loan officer or a business coach that wants to hear their story, that wants to hear the why behind their business and most importantly, that wants to see them succeed.

I will admit, I was incredibly impressed last week to see the level of expertise and professionalism that the CDFI industry hosts. By what I walked away with at the annual OFN conference was not just a natural admiration, it was an emotional connection. Every day, CDFIs change the course of someone’s life. This effects not just that individual, but their family and their community – our community – for years to come.

– Cat Berman, Co-founder

By Financial Planning

Are you an over-saver?

Nearly 1/3 of Americans are over-saving, amounting to over $300B in “extra” savings sitting in banks earning nothing. So why do we do it? CNote interviewed 100+ over-savers to find out. Here’s what we learned.

I know, it sounds like a funny term. Over-saver? But if you are one of the millions of Americans that have a rainy day fund, there is a high chance that you too, are an over-saver. We define an over-saver as someone who houses more than their emergency fund in their savings account. Perhaps you keep $1,000 more – or tens of thousands more. Whatever the case – you’re not alone. Nearly 1/3 of all American’s are over-savers, amounting to over $300B in “extra” savings.

So why call out our propensity to over-save? Well two reasons really. First and foremost, if your savings is housed in a traditional bank, you are actually losing money. Those bank interest rates are no longer keeping up with the rate of inflation, and online savings banks are barely matching it themselves.

Secondly, I would argue that keeping $300B on the sidelines is bad news for our economy. When over $300B sits in savings accounts earning nothing, that means less money is circulating, spent, loaned and put to work to make our economy stronger.

So you may ask yourself – why do we do it? Why do we house extra dollars when we know they will bare little fruit in this incredibly low interest rate environment? Well I decided to find out. I went out and interviewed over 100 over-savers and here were the main themes that emerged:

1) Liquid is Safety – after enduring several recessions, many Americans still feel that the only thing they can rely on is cash. Will the market crash under the next administration? Will my dollars be there for me when I need to cash out? Many of us think our cash on hand is simply smart given the volatility we’ve seen. It’s not that we won’t play the market – we just won’t put all eggs in any one basket.

2) Flexibility is Key – we used to be a more predictable society. I know my parents had a plan – whether it was for big vacations or retirement – and they stuck to that plan. But many of us just simply don’t live our life that way. What if there is a big purchase we want to make next year? Or an investment opportunity we don’t want to miss? Having cash on hand makes those opportunistic leaps easier.

3) We Simply Forget – I know it sounds silly, but I heard this over and over again. When new cash comes in, many of us take the easiest road: dump it in our savings. That’s much easier that exploring our options and it’s why those dollars are often left there without thought, intention or investment.

Take all of these together and you have a snapshot of how we’ve developed a hefty $300B+ cash cushion.

I think it’s finally time to admit it – Americans are increasingly tied (psychologically and emotionally) to liquidity. While not as sexy as trading, cash management is important – but often ignored. We are here to turn that around.

Our goal at CNote is to create a new reality for good savers that allows you to do good and do well. We believe you deserve an experience that is simple, honest and helpful. As we create this new world, we invite you to comment, challenge and help us redesign a financial reality we can all be proud of.

– Cat Berman, Co-founder

By CDFIs, Savings

The Good Guys of Finance. (Yes, they exist)

Having worked in both venture capital and financial services, I have seen some of the best and worst faces of finance. But there is one financial segment that is largely ignored and vastly under-celebrated. I call them “the good guys and girls of finance” for many reasons, but also because it’s easier than their name: CDFI.CDFIs, or Community Development Financial Institutions, were created over 20 years ago by the U.S. Treasury Department to help ensure that our country’s most underserved populations – low-income neighborhoods, women and minorities – were getting fair access to capital. Think about it this way: large banks don’t always find it easy or prudent to lend capital to certain types of small businesses, including first time entrepreneurs or entrepreneurs who need less than 100K to start up their business. And if you are a woman and/or minority, unfortunately, the statistics have shown you are even less likely to secure that capital.

Herein lies the opportunity, and the triumph, of CDFIs. Their mission is to ensure that high-potential, underserved borrowers get the capital they need to run their businesses. They provide fair costs of capital, reasonable short and long-term products and one more thing – business coaching. CDFIs understand that running a business and assuming a loan are large responsibilities that, for most of us, require additional coaching and mentorship.

If you haven’t heard of CDFIs I encourage you to check them out. Everyday I stumble upon new learnings and success stories of how CDFIs are transforming our communities. I look forward to sharing them with you.

– Cat Berman, Co-founder

By CNote, Financial Planning, Savings

The world that we co-create

What if…

We lived in a world where we could vote with our dollars – in everything we do.

Not just by buying a cup of coffee from the local shop we love, but by actually investing in that shop’s growth and success.

And what if we benefited too? Not only by feeling great about supporting our community, but actually creating financial freedom for ourselves along the way.

This is what we are creating..and we hope you’ll join us for the journey.

We are CNote.

CNote stands for co-creation. The idea that every $100…and really every $1…can be intentional and meaningful.

Instead of investing in what we’re told to invest in — stocks, bonds, ETFs, whatever the next acronym is — we invest in each other.

We call it investing in people, not products.

The feedback we’ve gotten so far has been inspiring and quite moving.

Join us creating a meaningful alternative for where our money goes and what our money stands for.

Join the village!

– Cat Berman, Co-founder

Y combinator
By CNote

CNote selected for Y Combinator Fellowship

Y combinator

We are proud to announce that CNote has been selected to be a part of Y Combinator’s Fellowship program. YC has helped to fund and grow an amazing list of innovative companies, and we’re proud to be among their ranks.

The doors this opportunity opens is not lost on our team. We know this selection is just the first few steps in our march towards innovating and democratizing finance, but we’re extremely excited!  We’re looking forward to further refining our products and building more relationships in the financial technology space as a result of this fantastic opportunity with YC.

CNote was created from a place of optimism and determination. We are crazy enough to believe we can redesign finance and create products and services that inspire and empower, not confuse and frustrate. Our aim is to focus on inclusivity, integrity and community when creating every financial product we bring to market.

You can learn more about CNote and our mission here. Also, feel free to contact our team with any questions at support@mycnote.com.