Three reasons CUNA Mutual joined the FinHealth Fund—and why your CU should, too

Gerry Singleton, Vice President, CUNA Mutual Group

According to the  Bureau of Economic Analysis (BEA), the US economy grew by 5.7% in 2021. This represents the strongest calendar-year growth since 1984. GDP is a strong indicator of America’s overall economic health. With such strong growth, one might assume Americans are also benefiting from this economic revival. Unfortunately, that’s not the case.

A  recent media release from the National Credit Union Foundation said the financial health of more than 160 million Americans is fragile and uncertain. The FinHealth Fund aims to transform lives by helping people improve their financial health. To accomplish this goal, the FinHealth Fund will focus on three interrelated efforts.

1. Creating a national resource library (e.g., current work, case studies, toolkits, and other resources) to help credit unions embrace financial well-being for all as a strategic imperative.
2. Providing education and upskilling for credit union employees to establish a workforce ready to passionately serve people where they are in their financial lives.
3. Supporting industry-wide consumer research, data capture, and analysis to prioritize efforts and quantify improvements to members’ financial health.

The fund, which was created after a group of about 60 different credit union industry leaders met in September 2021, aims to raise $10 million over the next five years. Four credit unions (BCU in Chicago, Ill.; Coastal FCU and Local Government FCU in Raleigh, N.C.; Redwood CU in Santa Rosa, Calif.) have already committed a total of $1 million to the fund. CUNA Mutual Group has contributed another $1 million.

CUNA Mutual decided to contribute to the FinHealth Fund for three reasons.

• We are where you are
  CUNA Mutual wants to be where our credit unions are. The need for this fund was identified by CUs last year. The strategy is being driven by CUs, and CUNA Mutual wants to be there to support our CUs on this journey.

• Our organizational purpose
  CUNA Mutual’s decision to participate goes back to the organization’s purpose, which is to make a brighter financial future accessible to everyone. As I mentioned earlier, the Fund’s collective goal is to transform lives by helping people improve their financial health. Contributing to the fund was a natural fit because it directly aligns with CUNA Mutual’s purpose and the mission of the credit union movement.

• More than just a transactional relationship
  CUNA Mutual also contributed to this Fund to provide the consumer with more than just a transactional relationship. Consumers need more than an institution to cash their checks. They need financial advice and coaching. They need places to live and raise their families. They need transportation to work and school.

Why should your CU get involved with the FinHealth Fund? For a very long time, credit unions have been leaders in improving the financial health of the consumers they serve. Although some economic indicators like 2021’s GDP may suggest we can take our foot off the gas, other indicators tell us now is not the time to let up.

How can you get involved? The answer is two-fold. First, donate. More importantly, as these resources curated by the FinHealth Fund become available, use them. Use the resource library. Take advantage of the upskilling for your employees. Use the data and research made available. Taking these steps will help make brighter financial futures available to more than 160 million Americans whose financial health hangs in the balance.

Gerry Singleton is the vice president of credit union system relations for CUNA Mutual Group. He is responsible for establishing, strengthening, and maintaining relations with credit union trade organizations and state leagues.