KETCHIKAN, Alaska–“Financial well-being for all,” the theme CUNA and other CU organizations have made the central tenet for their efforts and focus, is all about the “soul of cooperation,” and that benefits both credit unions and their members, according to one person.
Speaking to the Alaska Credit Union League’s annual meeting here, Gigi Hyland, executive director of the National Credit Union Foundation drew upon the PBS program “The Soul of the Ocean,” to offer a lesson and insight about credit unions. The program often shares examples of how in nature communities of life cooperate. “And everyone must play their part to maintain the delicate balance.”
Given the location of the meeting, Hyland also referenced the local salmon runs that benefit so many communities, a cycle that “makes a huge difference.”
The Credit Union Example
Moving the examples to credit unions, Hyland shared the story of the mill workers of Manchester, N.H., who came together in the early 1900s to form America’s first credit union, St. Mary’s Bank.
“If they couldn’t make ends meet, the only place they could get credit was from a loan shark who was waiting outside the mills,” said Hyland. “So, what happened? Cooperation. Most of the French-Canadians belonged to St. Marie’s Parish. And the parish priest started (St. Mary’s Bank),” along with others.
Moving forward in time, Hyland shared the story of the passage of HR 1151, the Credit Union Membership Access Act, after a two-year battle and extraordinary effort by credit unions in 1997-98. That Act helped overcome a Supreme Court decision that had gone against credit unions over field of membership.
Meeting the Moment
Hyland then cited a contemporary example.
“Here’s where the mission meets the moment,” she said, noting that for the first time in five years, the number of Americans who could not meet a $400 emergency expense increased in 2022. Over 176-million people are now considered unhealthy and the wealth gap is widening, Hyland told the meeting.
“We are seeing people slip from healthy to coping, and this is where the opportunity for credit unions is,” said Hyland. “Why is this an opportunity? Eighty percent of consumers expect their PFI to help them improve their financial health. Fourteen percent of consumers strongly agree that their PFI actually does this. When a consumer feels their institution supports their well-being, the business case shows they are three times more likely to recommend their PFI, and two times more likely to continue the relationship over the next five years, and five times more likely to purchase additional products.
“What this is about is how you meet people where they are in life,” she added.
The Foundation’s Journey
The National CU Foundation is about people helping people, said Hyland, but it’s been reconfigured to focus more on financial health to manifest the credo.
“People come to the credit union for money, but what they are really trying to do is solve a problem,” said Hyland.
The Foundation has started its journey on “financial well being for all” by doing research on 28,000 people in conjunction with the Financial Health Network that confirmed the number of Americans who could not cover a $400 expense in an emergency.
Better Message on the Hill
Financial well-being is also a focus for CUNA, noted Hyland, who said that message is more powerful on Capitol Hill. By making “the member the heart of the story,” it changes the CU message in Washington from asking for something to asking for the ability to do something for others, she said.
“Cooperation is reliant on talent and culture,” said Hyland. “We can’t be community strong and we can’t cooperate if your employees don’t know anything about credit unions and the difference.”
Additional Notes
Hyland also:
- Urged credit unions to send employees to the Foundation’s Development Education (DE) program.
- Pointed credit unions to the National CU Foundation website, where they can get a “Financial Well Being for All: Quick Start Guide.”
- Urged credit unions to learn more about the FinHealth Fund, which is helping to underwrite costs to build out a repository of resources, identify and test data, and build readiness.
- Said credit unions can conduct all the surveys they want, and that will provide point-in-time insights, but that CUs already have the data to determine a much clearer, bigger picture.