By Roy Urrico
Today, about 30% of people in the U.S. participate in some form of public assistance programs, according to the U.S. Department of Health and Human Services (HHS). Many more are eligible but do not successfully enroll, often due to the difficulty of navigating administrative barriers, according to Starlight, a fintech and public benefit corporation based in New York City. Starlight provides an embedded platform that allows financial institutions, including GHS Federal Credit Union, to support accountholders’ financial health by unlocking benefit access.
“Our mission is to enhance the financial health of American households by enabling financial institutions to support their members through better access to government benefits and financial assistance,” Catherine Xu, co-founder of Starlight, told Finopotamus. “Through our embedded, white-label platform, we proactively identify members who may qualify for various public benefits and guide them through the application process, thereby unlocking substantial financial assistance.”
Xu explained artificial intelligence (AI) helps identify individuals facing financial challenges and pre-qualifies them for benefits based on their financial data, ensuring user privacy and consent. “By integrating this capability within banking apps and services, the platform surfaces information about government programs at the right place and time, providing personalized guidance through the application process.”
This not only helps individuals access much-needed financial assistance but Xu noted it also enhances the capacity of credit unions to engage effectively with members, ultimately improving loyalty and lifetime value.
Starlight Collaborates with GHS Federal Credit Union
Xu explained Starlight allows financial institutions to offer proactive, personalized financial services “that resonate deeply with prospective and existing members who live paycheck-to-paycheck, helping them build financial resilience.
“Starlight collaborates with various credit unions to help them deepen relationships with prospective and existing members, and enhance their product offerings that address the financial needs of their members,” said Xu. “We have advisors with depth of experience across the banking industry.”
Starlight has collaborated with the $229 million Binghamton, N.Y. based GHS Federal Credit Union, which serves more than 20,000 members who live, works, attend school, volunteer, or worship in New York’s Broome, Chenango, or Tioga counties.
Xu said by using Starlight’s technology, GHS FCU can help its members access government benefits in a variety of key categories, including cost of food, healthcare, childcare, utilities, as well as tax credits and unemployment insurance. This partnership enhances the credit union’s impact within its community by providing financial tools that assist members in managing expenses and building financial stability.
The integration of Starlight’s AI-based platform with the credit union’s personalized service model enriches in-person interactions and builds trust, showcasing a successful hybrid approach that amplifies team capabilities and supports personalized financial guidance, Xu explained.
“Starlight has created an amazing opportunity for people to take advantage of benefits that they qualify for, but may not know about,” Shawn Wolbert, CEO of GHS FCU told Finopotamus. “GHS FCU is a Low-income Designated Credit Union (LIDCU) that serves the underserved populations of the Southern Tier of New York. The members I serve need all of the assistance they can get. Putting a few hundred, or more, dollars back in their pockets makes a huge difference. As a credit union, if I can assist my members in this way, they will do better financially and I will be better able to assist them with financial counseling, and eventually with long term financial wellbeing.”
Said Xu, “In addition, GHS FCU’s partnership with Starlight exemplifies how a forward-thinking credit union can find unique ways to serve its members' needs, particularly in a changing economic climate where the middle class is shrinking, and the financial needs of households at either end of the spectrum become more distinct. This partnership demonstrates a commitment to innovative solutions that address these evolving needs, setting a standard for how financial institutions can support their communities effectively.”
Scalable and Flexible Platform
The Starlight platform is cloud-based, which ensures scalability, flexibility, and ease of access. The system ensures that financial institutions can offer a unified and cohesive experience to their members, whether they interact online, via mobile, or in person at a branch, Xu pointed out.
“Our cloud infrastructure allows financial institutions to deploy our solutions rapidly and efficiently (within one day), providing consistent and reliable service across different customer touchpoints,” said Xu. “We allow the financial institution to show this relevant proactive product at the right time for the member no matter where they are - home, branch or on-the-go.”
Starlight recently published a report, How Starlight is Using AI to Improve Public Benefits Access, with Commonwealth, a national nonprofit building financial security and opportunity for financially vulnerable people through innovation and partnerships, which was funded by JPMorgan Chase & Co.