LAS VEGAS–More than 50 professionals from across the country who are exploring how to effectively measure financial capability for credit union members came together here during the Financial Capability Colloquium to expand upon their growing coalition, which is committed to “owning” this topic.
Hosted by the California and Nevada Credit Union Leagues, the National Credit Union Foundation and BALANCE, the second annual event spearheaded an ongoing conversation about what defines “financial capability,” how it is attained, and how to tell a powerful story that will resonate with consumers, according to organizers.
“I was excited to see a variety of practitioners from across the nation come together to share their perspectives,” said Larry Palochik, senior vice president of member solutions for the leagues, in a statement. “What’s interesting is that we are measuring ‘financial capability,’ which is something that nobody else is measuring today.”
According to the California and Nevada Leagues, the colloquium has been building upon a key foundational principle: that financial education leads to financial literacy, which can then lead to financial capability and eventually financial well-being. The event began with a reception Wednesday evening before diving into a two-day experience with mini-sessions on what financial capability looks like through the national lens; the dynamics behind funding financial health and segmentation; how to measure capability and well-being; exploring the advancement of credit union efforts; being aware of the community aspects of financial capability; and the colloquium’s next steps.
According to Palochik, the colloquium will provide a “CU Financial Capability Survey” that’s been developed for credit unions to use on their members this summer—a total of 15 questions that measure financial capability based on how consumers feel about their finances and whether their behavior is aligned with those feelings. The survey incorporates questions developed by the colloquium, the University of Wisconsin, and the Consumer Financial Protection Bureau.
“We will probably receive 30,000 – 40,000 consumer and credit union member responses that will fuel some great talking points,” Palochik said. “Our efforts will hopefully amount to one of the most broad-based credit union pilots on this topic.”
Gigi Hyland, executive director of the Foundation, said that “how” organizations measure a person’s financial health and well-being is a “big topic” nationally.
“Credit unions do an awful lot of financial education, but they need to be part of the national dialogue on how to measure what truly advances members’ financial health,” Hyland said. “This effort will, for the first time, give credit unions a tool to start looking at how members feel and act about their finances.”
Presentations were made by representatives from the leagues, the Foundation, BALANCE, the Center for Financial Services Innovation (CFSI), Corporation for Enterprise Development (CFED), Cities for Financial Empowerment Fund, EverFi, CFPB, Center for Financial Security, Redwood Credit Union, and the Richard Myles Johnson (RMJ) Foundation (“Bite of Reality”).
The Financial Capability Colloquium was sponsored by EverFi.