CUNA
  • Advocacy
    • Priorities we’re fighting for
    • Actions you can take
  • News
  • Learn
  • Compliance
  • Shop
  • Topics
    • Compliance
    • Credit Union Hero
    • Credit Union Rock Star
    • Credit Union System
    • Directors
    • Human Resources
    • Leadership
    • Lending
    • Marketing
    • Operations
    • Policy & Issues
    • Sales & Service
    • Technology
  • Credit Union Magazine
    • Buyers' Guide
    • Digital Edition
    • Credit Union Hero
    • Credit Union Rock Star
    • Subscribe
    • Advertise
    • Contact
  • Advertise
  • Awards
    • Nominate Credit Union Hero
    • Nominate Credit Union Rock Star
  • Podcasts
  • Videos
  • Contact
Learn More about Member Value

News

Member Benefits
Learn more
Learn more about the benefits of membership.
Home » NYTimes profiles CU program that helps members ‘Borrow and Save’
CU System

NYTimes profiles CU program that helps members ‘Borrow and Save’

February 26, 2016

NEW YORK (2/26/16)--A successful credit union-based program that helps members build their credit and their savings is featured in The New York Times this week.

Borrow and Save, a pilot from the Filene Research Institute, ties borrowers’ small loans to a required savings plan.

Freedom First CU, Roanoke, Va., has offered the program since 2012. The program is often used as a path to build credit, establish regular payment habits and bolster savings accounts. “Once [members] have the nest egg started, it’s easier to contribute,” Dave Prosser, Freedom First’s senior vice president for community development, told the Times.

In Filene’s pilot, the participating credit unions made loans of an average amount just under $1,000 to more than 3,000 borrowers. Borrowers saved an average $290, which “for many people, it can provide at least a minimal safety net,” the “Your Money Adviser” column noted.

In a survey of 146 of the borrowers, 94% said the loan helped in an emergency, and 89% said they would use the program again if needed.

The savings component helps credit unions mitigate risk--fewer than 2% of borrowers defaulted, according to Pamela Owens, vice president for programs at the National Federation of Community Development Credit Unions.

Credit Union Magazine - Winter 2019

Winter 2019

Alternative lending, compliance management systems, and ideas for boosting credit card portfolios are among the topics of Credit Union Magazine’s Winter 2019 edition.
App •  Digital Edition •  Subscribe

Trending

  • CFPB proposes to raise remittance threshold to 500 transfers

  • Compliance: Recapping the 2019 BSA Conference

  • Concerns over credit union-bank mergers, CRA ‘inaccurate, misinformed’

Tweets by CUNA_News

Polls

What's the pace of staff turnover at your CU?

View Results
More

Champion of America’s Credit Unions

Credit Union National Association is the only national association that advocates on behalf of all of America’s credit unions. We work tirelessly to protect your best interests in Washington and all 50 states. We fuel your professional growth at every level and champion the credit union story at every turn.

More CUNA

  • About
  • Careers
  • Contact Us
  • Recommended Websites

Resources for

  • CUNA Board Members
  • Credit Union Advocates
  • Leagues
  • Press
  • Vendors