Prize-linked savings expands to two more states
Prize-linked savings is now available to credit union members in two more states, bringing gamified savings to all but a handful of states.
The latest entrants are Hawaii and Utah, both of which will offer Save to Win from CU Solutions Group. A total of 132 credit unions 19 sates offer Save to Win, according to a press release from the company. Maui Teachers FCU in Hawaii and Utah-based Freedom CU both went live with the program on Jan. 1.
Recent bills in both states paved the way for prize-linked savings programs.
“Prize-linked savings programs like Save to Win promote healthy saving habits, especially for those that are financially vulnerable and underbanked,” Dave Adams, president & CEO of CU Solutions Group, said in a press release. “Incentive programs can play an important role in a credit union’s financial education roster and introduce members to new products and services that further enable them to grow wealth and manage their finances.”
While Save to Win is the most widely used PLS program, it is not the only one. Last fall, Ohio debuted a similar program modeled after an initiative from the Minnesota Credit Union Network. Louisiana and Wisconsin launched their own programs in 2018.
As reported, some credit unions have begun offering prize-linked savings as a strategy to help bolster deposits, though analysts cautioned volumes from these programs alone will not be enough to substantially increase liquidity without additional measures.