Innovation

DUCA’s innovation is their Impact Lab, which supports the Sustainable Development Goal of no poverty. Keith Taylor said, “So, what we do in the Impact Lab is create fair banking that benefits all. Defining what we mean by fair banking, and finding access opportunities, and value generation opportunities for people that really don’t have access to mainstream banking...We’re finding ways to provide financial services to those segments of the community, but in a way that fills a void.” The Impact Lab is a registered charity, and the mission is to bring better banking to all, as well as helping people break free from predatory lenders, a sector that disproportionately impacts women. This raises the questions: why are so many of the victim's women? But more importantly, what can be done to protect them and provide safer, more sustainable financial solutions? This is a part of DUCA’s broader commitment to social responsibility and they aim to inspire and implement change worldwide. The Impact Lab emphasizes using data and community engagement to create impactful programs. They collaborate with local communities to get a better understanding of the challenges people face in terms of achieving financial well-being. Learning this helps DUCA’s Impact Lab to design programs that address the root causes of financial exclusion, which builds a more inclusive and sustainable financial ecosystem.  

DUCA’s Impact Lab is creating a better world by tackling the issue of financial inequality and promoting economic inclusion for underserved communities. They do research into financial vulnerability and financial health. The research is then used to identify where the opportunities are for inclusion and then start to design solutions. It is run for a period of time so that they can understand what the risk is. DUCA envisions a future where everyone has the same financial opportunities and support needed to thrive. Their focus is on sustainable, community-oriented solutions, but they are also working towards long-term, systematic change, which will lead to a more inclusive economy.   

Inspiration

Keith Taylor, the interviewee, is someone who grew up seeing the kinds of inequalities that impact Canada, Keith has always been motivated to do his part to help fix them. After working with several companies supporting impactful initiatives, Keith was ultimately inspired to join DUCA, captivated by their mission and story. DUCA has been around for over 70 years, and it first started as a group of newcomers who came to Canada. The banks did not want to deal with them as they didn’t have credit histories or a lot of money and were just getting started in the employment market. On paper, the banks said they were not great banking customers. “And in the first year, I think we had a few $100 on the balance sheet and operated out of a living room, just outside of Toronto,” said Keith Taylor, Executive Director of DUCA Impact Lab. Keith went on to say, “What was interesting about the whole evolution was that even though they looked, on paper, to be not particularly good banking customers, they turned out to be excellent banking customers.” Even as of recent, looking at DUCA’s growth rate over the last number of years, it is well into the double digits, which is impressive considering this started out in a living room.  

Keith Taylor said all they wanted to do was answer this question: “What would banking look like if all we were trying to do was create an opportunity or solve a problem?” This question inspired the creation of the Impact Lab. From there, DUCA recognized that achieving long term social and economic sustainability would require partnerships and a collective approach, which brings them to their focus of sustainable, community-oriented solutions while also working towards long-term change that will lead to a more inclusive economy.   

Overall impact

DUCA’s Impact Lab promotes financial inclusion and aims to break down barriers to financial access for underserved populations. This includes support to low-income individuals, newcomers, and small business that might struggle to secure traditional banking services. Countless individual stories of indebted Canadians helped by the Impact Lab circulate online, some of which are even published by DUCA themselves. For example, meet Sarah – “After losing her job unexpectedly, she needed money fast to support her family. She turned to a payday loan, hoping for a quick fix, but found herself trapped in a cycle of higher-interest debt. At the DUCA Impact Lab, they understand how life can take sudden turns. Sarah found relief with their Escalator Loan, which offered lower interest rates and manageable payments. By approving her loan based on cash flow, not credit score, DUCA helped Sarah pay off her payday loan and start rebuilding her financial stability”. Like Keith Taylor said, “We’re finding ways to provide financial services to those segments of the community, but in a way that fills a void...We do research into financial vulnerability and financial health. We use that research to identify where the opportunities are for inclusion and start to design solutions for including those segments.”  

As for the long-term impact, this is something that takes time. DUCA’s larger mission is to build a database in a place where it doesn’t exist. Shedding light on predatory lending through data will provide decision makers with evidence on the significance of the issue and help develop policies and regulations to reduce the frequency of predatory lending in Canada in addition to spurring other financial institutions to work towards serving this community in a more equitable way. 

Business benefit

As a business that was not well-accepted in its preliminary stages, DUCA understands and supports those who are not accepted and respected in society. By creating Impact Lab, individuals who struggle with their finances can see DUCA for the help they need because of how the business is willing to help. 

Impact Lab benefits DUCA by including a different sector of consumers into the market that most other banks would not be willing to branch out and provide services for. By branching out and expanding, the business gains more potential clients that are searching for banking services such as loans and lower interest expenses. While this brings in more customers, the innovation also draws attention to the business itself which inspires other institutions to join in. Keith Taylor states, “They want to do more of this type of thing, and we do work with other institutions in the Impact Lab now, so I think there is a potential to do more of that. I think takes a couple of different forms.” The innovation has sparked interest in other businesses which results in those businesses wanting to collaborate with DUCA down the road.  

In addition, this leads to an improved employee and customer retention rate through the Impact lab initiative. Employees are motivated by DUCA’s mission to offer new banking options to underrepresented communities and the alignment with meaningful work fosters a strong sense of purpose and satisfaction, which translates into greater employee loyalty as well. Customers who benefit from escalator loans are much more likely to feel a deep sense of loyalty, viewing DUCA as a partner on their journey to financial independence. The Impact Lab not only improves financial well-being for individuals but also increases customer retention, as customers appreciate DUCA’s willingness to invest in their long-term success. 

Social and environmental benefit

The innovation of Impact Lab benefits society by setting a powerful example on how financial institutions can promote economic equity by drawing in lower income individuals into the economy which not only helps those in need, but also stimulates the economy and other businesses. The well-being of these individuals is improved by providing them with opportunities with banking which leads to their quality of life to be much simpler and lifting a weight off their shoulders. By doing this, DUCA is addressing systematic barriers in a way that goes beyond traditional banking. Their emphasis on research and data-driven initiatives, highlights the importance of this issue and paves the road to identifying sustainable solutions for these gaps both shaping DUCA’s own initiatives and providing valuable insights that can motivate other financial institutions to recognizing the significance of addressing financial inequality in Canada and beyond. This is highlighted in the interview as Taylor states, “What's left, though, is the impact on well-being, by creating a situation where if you're taking money out of low-income households, you're increasing the risk of housing instability, food instability, and mental health risk, which draws on the healthcare system.” The Impact Lab truly benefits society by providing those in need with opportunities that other credit unions or banks would not offer. 

Interview

Keith Taylor, Executive Director