MADISON, Wis.––The Filene Research Institute said its Center of Excellence for Community Social Impact will conduct applied research to “expand the knowledge and practice of social impact among credit unions,” with the goal being to provide resources needed to develop a “strategic advantage in the communities they serve and become a catalyst for transformative community change.”
In announcing the initiative, Filene noted consumers’ financial capabilities and economic prospects are increasingly constrained by structural challenges that cannot be resolved with solutions that target individuals. Current public health, economic and social injustice crises further add to a growing body of research demonstrating that social impact is an increasingly important factor by which consumers decide the brands they want to engage, Filene added.
“Credit unions are a small but mighty player in consumer financial services, holding firm to their mission of serving the needs of their communities—especially for those most vulnerable within them,” said Filene’s EVP and chief research and development officer, George Hofheimer. “But there is a gap between recognizing the value of social impact strategies and actually implementing them. Therefore, this applied research project will document, index, and test social impact activities in the consumer finance industry with the goal of identifying models that leverage financial services to enable positive social impact and community transformation.”
The Focus
According to Filene, work conducted throughout this five-year project will be done in collaboration with an advisory council of credit union leaders and a dedicated research fellow to focus on:
- Identifying proven factors that successfully fight the root causes of poverty and inequality impacting individuals, families, neighborhoods, and communities
- Establishing longitudinal research to identify and track proven programs and agencies that enable social impact in the consumer finance industry and drive household and community financial wellbeing
- Creating and testing a social impact playbook to demonstrate the links between community development initiatives and positive business and consumer outcomes
- Building partnerships with local governments, schools, hospitals, community and nonprofit organizations to translate financial services into physical and social wellness and improved quality of life
The Benefactors
Support for the Center for Community Social Impact is provided by Callahan & Associates. Redwood Credit Union, Summit Credit Union (Madison, Wis.) and WSECU.
Filene reminded credit unions and system partners have an opportunity to get involved as part of Filene’s Inner Circle by sponsoring Community Social Impact or any other Center of Excellence.
The Center of Excellence for Community Social Impact will officially launch in October 2020.