Credit unions better serve consumers living paycheck to paycheck, combat financial deserts

by America's Credit Unions

Credit unions consistently serve a higher share of households living from paycheck to paycheck than banks, America’s Credit Unions Head of Emerging Issues and Deputy Chief Economist Curt Long explains in the latest Economic Update video.

The Federal Reserve’s Consumer Finance Survey shows just under 40% of households that use credit unions as their primary financial institution have liquid financial assets of less than two weeks of income, more than banks (at around 35%).

“This result clearly shows credit unions are at the front lines serving households living in the margins,” Long said.

The update also examines recent research from the Federal Reserve Bank of Philadelphia focusing on changes in branches since the onset of the pandemic. The report found the pace of bank branch closers has doubled since 2019, resulting in a 6% increase in census tracts without a financial institution branch.

 

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