SAN ANTONIO (7/26/13)--Select FCU (SFCU) in San Antonio is using its community roots to meet its primary goal of reaching out to people who lack basic financial literacy skills.
When staff of the $32 million asset credit union attended a meeting of 75 parents at a local elementary school and asked parents who had a basic checking or savings account, they were surprised only six people raised their hands, Belinda McDaniel, SFCU CEO, told mysanantonio.com (July 22).
In reaching out to members--many of whom live from paycheck to paycheck--the credit union tries to steer members clear of predatory creditors such as same-day lenders who charge 400% interest on their loans, with payment due when the borrower's next paycheck arrives, McDaniel told the publication.
SFCU said it is developing an alternative to same-day payday lenders who take advantage of its members.
The alternative product will feature a greatly reduced interest rate of 28%, a four-to-six month repayment period and fewer fees, McDaniel told the publication.
SFCU also tries to be a more useful alternative to large banks. Its employees perform community service such as helping with fundraisers, painting houses and setting up tables at fairs. Roughly nine out of 10 of its employees are bilingual, speaking English and Spanish.