Introduction to Diverge Proposed FCU – Financial Inclusion for Returning Citizens and their Families 2023 | CrossState Credit Union Association | 24 April 2023 | Webinar

Credit union history and principles are rooted in helping underserved communities and advancing cooperation among cooperatives. But even in 2023, there are large groups of people who are not well-served by existing credit unions or other financial institutions and fintechs.

Discrimination in financial services is a significant problem for formerly incarcerated individuals, and especially impacts people of color and women. The lack of a valid form of identification, poor credit history, prior banking problems, or simply having a criminal past, can prevent people from opening even a basic checking account. Millions of returning citizens are unbanked and credit invisible, forcing them to rely on high cost, often predatory, alternatives, such as check cashers and payday lenders. Opportunities to save, build credit, and achieve long-term financial security are limited. This greatly affects successful reentry into society and contributes to the high rate of recidivism in this country.

Why should the credit union movement support Diverge?

• It benefits all credit unions to have a vibrant, diverse, and growing movement where all consumers can find their financial home.
• Diversity, equity and inclusion is more important now than ever. Millions of people are unbanked – be a part of ending systemic discrimination in financial services.
• Help reduce recidivism. Everyone deserves a second chance, and access to affordable banking services is an integral part of successful reentry.

2023 Speakers

Nancy Eiden
Founder and Board Member first Step Alliance

Thomas O’Shea
CCUE