NEW YORK (5/6/15)--An initiative to bolster financial counseling for low-income consumers at credit unions was introduced this week by the National Federation of Community Development Credit Unions (CDCUs) and Neighborhood Trust Financial Partners.
Called Pathways to Financial Empowerment, the program will provide five credit unions $20,000 grants to pilot financial counseling services within their communities.
The credit unions will provide one-on-one counseling, which will be integrated with product delivery and supported by an outcome tracking platform, according to the federation.
“Financial counseling is a proven method for increasing the financial stability of low-income consumers who may be dealing with uneven cash flows or no credit history,” said Cathie Mahon, federation president/CEO. “This pilot will help us determine how best to deliver and track counseling outcomes through a diverse pool of participating credit unions.”
The initiative is sponsored by the MetLife Foundation. It also received financial support from the NYSE Euronext Foundation.
“Together, (the federation and Neighborhood Trust) will exhibit one more way to make CDCUs even more responsive to their members’ and communities’ needs and generate a data set that demonstrates the case for integrated financial counseling as smart credit union economics,” said Justine Zinkin, Neighborhood Trust CEO.