ATLANTA—The National Federation of Community Development Credit Unions believes the new On the Rise Financial Capability Center here will become a model for other organizations, or groups of credit unions, to establish in their communities to help residents get on sound financial footing.
As CUToday.info reported, the Federation and Equifax have partnered to open the Center in this city’s historic Westside communities. Atlanta’s Westside, for many years an area seeing little community reinvestment, is growing today. Businesses are restarting, new housing developments are underway, and young professionals are calling it their home.
But there is a section of the Westside where low-come residents are struggling to make a future, said Ann Solomon, the Federation’s director of strategic initiatives. It’s a section of the city that needs a strong financial presence.
“The Center, and the financial counseling we provide, is a big need in this community,” said Solomon, who said the Federation believes the Center will set an example that others will follow. “We want this Center to become a strong feature of the Westside and give people of this community the tools and support they need to advance their financial lives. Ideally, we’d like the Center to be a model that other collaborations of credit unions could take up in their communities to serve low-income residents.”
Affordable Banking
The Center will provide Atlanta's Westside communities with affordable banking, alternatives to payday loans, affordable home mortgages, and a suite of financial services designed to empower residents to achieve their financial goals, according to the Federation.
But the key, said Solomon, is education first. The Center will provide educational programs to residents and then connect consumers with credit unions to get the products and services they need. Participating with the Federation in the Center are four area credit unions: 1st Choice Credit Union, BOND Community Credit Union, Credit Union of Atlanta, and Peach State FCU.
The Center opened in April and is now operating 10 a.m. to 4 p.m. during the week. Solomon said a steady stream of residents have stopped by in the first week. The Center provides formal financial education programs and one-to-one financial counseling.
“We are planning this year to deliver four full financial education courses,” said Solomon. “We also expect to serve 175 people with individual counseling this year—provide full financial assessments and work with them on next steps and follow-up.”
Future home for On The Rise Center
Solomon said that Equifax’s ongoing efforts to help rebuild the Westside led to the partnership with the Federation.
“For the past two years the Equifax Foundation, along with the Arthur M. Blank Family Foundation, has been working in the West Side on improving the financial futures of the families in the community,” said Solomon. “There is a tremendous amount of community development and reinvestment here today, after many years of disinvestment. We were approached by Equifax about how we could advance the financial well-being of low-income people in the Westside, where there is very little access to traditional financial services. Based on the work we have done across the country on increasing financial inclusion and the delivery of financial counseling paired with credit union products, we agreed to work with them.”
Solomon emphasized that the four credit union partners the Federation brings to the Center are critical to the Center having a big impact.
“Whether it’s group counseling or one to one, the training will include connecting people with one of the four credit union partners to get the products they need to meet their new financial goals,” Solomon said.
The Center will be headed by Director Regina Grant, a long-time credit union financial counselor.
“Regina will be the primary financial educator and financial coach overseeing the program,” said Solomon.
The partner CUs will also provide additional financial counselors at the Center, who will donate their time, as well as provide financial education out in the Westside communities, noted Solomon. “We also want to take the education where the people are.”
Flagship Center
The Center’s operations are paid for by the Federation. Equifax has made a three-year commitment of $450,000 to support the Center’s launch. Invest Atlanta, the City of Atlanta's economic development agency, has awarded a Westside Tax Allocation District Community Improvement Fund grant to provide equipment and furnishings for the Center.
Solomon said the Center is a flagship for the Federation’s Pathways to Financial Empowerment program, a program designed to strengthen and expand financial counseling within CUs, integrate counseling with financial products, and track and demonstrate impact.
Pathways is a national program the Federation has had a great deal of success with, explained Solomon, who added that program’s learnings will be applied to counseling in the Westside.
The Federation, too, is working with several other organizations in the Westside to increase financial literacy here.
“For example, we are partnering with a work first development program to bring financial education to people who are getting into new jobs,” said Solomon.