Wisconsin CUs carve niche with youth, immigrant programs

MADISON, Wis. (10/31/06)--Wisconsin's credit unions are using programs aimed at youth and immigrants to carve a niche serving groups that aren't on other financial institutions' targeted lists, according to an article in two Madison, Wis., newspapers.

The not-for-profit status of credit unions means they can seek members among the financially underserved, said Brett Thompson, president/CEO of the Wisconsin Credit Union League in the article The Capital Times and Wisconsin State Journal (Oct. 28).

Thompson told the publication that credit unions think about problems differently from banks because they don't have to answer to quarterly earnings reports.

At one credit union, the article says, the average balance for new accounts is $34 "not nearly enough to please stockholders at a for-profit bank."

Wisconsin has more than 50 in-school student-run credit unions to teach the value of savings and checking accounts. They are supported by larger credit unions. Other credit union initiatives in the Madison area include:

  • Star CU, the nation's only youth-chartered credit union, is located at the Boys & Girls Club of Dane County. Supported by Great Wisconsin and Summit credit unions, the credit union--not quite two years old already has 133 members and $23,647 in assets.

  • First Community CU helped bring a mobile Mexican consulate team to Beloit. It issued 180 passports and 500 identification cards to Mexican citizens so they had documents needed to open accounts. The event was so popular the team had to turn people away. The mobile consulate will return in the spring.

  • Great Wisconsin CU partnered with Centro Hispano to offer outreach meetings to improve financial literacy in Madison's Hispanic community.

  • Heartland CU offers low-cost financing with flexible terms to nonprofit organizations to promote economic development

  • Heritage CU has the Credit Wise program to members with low credit scores.

  • Several Wisconsin credit unions offer three-year adjustable rate home mortgages at one percentage point below the national average to qualified borrowers.

  • Several also offer short-term alternatives to payday loans.

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