At risk of becoming irrelevant

Financial Health Network recently hosted its EMERGE conference which brings together leaders from the entire ecosystem including financial institutions, employers, government agencies, nonprofits, and fintechs.

This three-day event took a deep dive into emerging trends, real-world case studies, and visionary ideas from bold leaders across our ecosystem who are pushing for equitable expansion of financial health. Attendees had the pleasure of learning from credit union leaders including Cathie Mahon and Erin Mendez, and from system partners including Andy Bandyopadhyay and Kareem Saleh.

I had the honor of co-emcee for EMERGE and a few highlights stood out to me from a credit union point of view:

• When the history books are written and we look back on the credit union movement in the United States, Beverly Anderson and Gigi Hyland will be etched into the Mount Rushmore of the industry. Both BECU and NCUF have pushed credit unions to put financial health at the center of their business.
• After screening the Oscar-nominated short, The Barber of Little Rock, Arlo Washington, President and CEO of People Trust Community FCU, took the main stage with Donna Gambrell to discuss the importance of CDFI funding and useful solutions to closing the racial wealth divide. This fireside chat brought tears to attendees’ eyes as we all realized we could do much more to support CDFIs.
• Brian Moynihan, Chair and CEO of Bank of America, was in person to accept this year’s Financial Health Visionary Award. Why, you ask? Because Bank of America is doing financial health and they’re doing it well. Among other things, Bank of America has (1) pledged to increase its employees’ minimum hourly wage to $25 by 2025, (2) reduced its overdraft fee from $35 down to $10, and (3) been certified by J.D. Power three years in a row for financial health and advice of its customers.

Over 600 key decision-makers immersed themselves in the vibrant energy of the conference and equipped one another to do their part to rewire our systems for financial health. Less than 10% of attendees were from credit unions.

Where were you?

Best-in-class organizations understand and embrace that doing financial health is a competitive differentiator regardless of market. They are putting financial health at the heart of their business, they’re understanding how advances in technology lead to financial health for all, and they are moving industries forward.

Members demand that you are doing financial health

In 2019, Financial Health Network found that an overwhelming majority of consumers (80%) want their PFIs to help them improve their financial health, yet only a small percentage (14%) agreed their PFI is doing this. And when members have a good relationship with their credit union, because it supports their financial health, they have greater levels of satisfaction and loyalty, and are far more likely to purchase additional products. Short-term “pain” for long-term gain.

Are you stuck?

As a credit union, you have everything you need to do financial health, including:

• System partners and thought leaders that are putting financial well-being for all into practice;
• Platforms that capture best practices and lessons learned from the field;
• Networks of practitioners that share your financial health vision; and
• Financial health tools and programs that guide your strategy

Get out of your own way

Recent policy advancements falsely claim to threaten credit unions’ value to members and communities, forcing the industry to resist change. Your value remains constant: improving financial well-being for all. Despite the turmoil and adversarial views, credit unions continue to play an important role in our economy and democracy. However, to remain relevant you need to be a future-forward leader.

All credit unions see themselves as an essential part of the community they serve, looking past the corporate structures centering people in everything they do. The future of the credit union movement is financial well-being for all. But when it comes to doing financial well-being for all across the ecosystem, credit unions are bringing up the rear.

It’s now or never

The credit union industry is at a pivotal moment to either promote financial well-being for all as a competitive differentiator or solely focus on keeping the status quo, driving its irrelevance.

In the last two years, a group of credit union leaders have met regularly to discuss financial well-being opportunities and challenges facing their institution and the industry as a whole. This group stands at the forefront of the change necessary for the credit union industry to thrive, and we believe by unifying the industry and promoting actionable advice, solutions, and thought leadership, credit unions will embrace financial well-being for all as a competitive differentiator.

Anything is possible with time and money, but the desire to improve financial well-being for all feels absent. This is where you come in.

My request is simple

Make room for and empower the next generation of financial health champions so credit unions remain relevant.