Is Your Overdraft Program Hurting Struggling Members?
Many depository institutions are changing their overdraft policies to benefit their customers and their businesses. The Financial Health Network recognizes that there is no one-size-fits-all solution to reforming overdraft, so they developed a set of options for depository institutions to consider.
Evaluate existing overdraft policies and practices: make reforms, such as adding a cushion before charging a fee.
Help members manage monthly expenses: use savings automation and budgeting and cash flow analysis tools
Position members to avoid overdrafts: educate about policies and provide "safe to spend" calculations
Offer alternative forms of credit: consider small-dollar credit programs that provide immediate cash flow without overdraft fees
Provide safe checking accounts: consider no overdraft fees or low monthly maintenance fees
Measuring Member & Employee Financial Well-Being
"Setting members and employees on a track to financial wellness is a goal for many credit unions, but figuring out how to start, measure the success of and maximize the impact of a financial wellness program can be daunting."
Read this article to learn the steps two credit unions took to assess and provide tools for financial wellness.
Equifax to Offer Credit Reports in Spanish
Equifax has announced that they'll offer Spanish-translated credit reports for free, both online and via mail. The move will help more than 62 million Spanish speakers in the U.S. Equifax is the first major credit reporting firm to offer the service.
When Does Financial Support from Family, Friends Play the Role of Emergency Savings?
People who were not saving for emergencies near the start of the pandemic were three times as likely to turn to friends or family for financial support (15% vs. 5%) as people who were saving.
Supporting the creation of emergency funds for individuals as well as reducing barriers to family borrowing can help more people cope when financial shocks arise. How can your credit union help?
Looking for new ways to help members, approach financial coaching or get involved in your community? We recommend investing a few minutes in these links:
ICUF was established in 1995. Our mission is to empower people and communities to achieve financial well-being by championing the credit union philosophy of "people helping people."
