Credit Unions Offer a Caring, Compassionate Approach to Finances

The number of consumer banks in Puerto Rico has shrunk by half over the past decade, in what has been called a bank “exodus” from the island. But, in a sign that Puerto Ricans are embracing a kinder, more community-oriented approach to banking, the credit union presence in Puerto Rico has grown.

PenFed Credit Union has had a presence in Puerto Rico for 17 years. We began as a credit union for military service members and their families, and we developed a reputation as a trustworthy and compassionate organization. Now PenFed is open to everyone. We offer a full range of financial services, from checking, savings and auto loans to investment management and estate planning.

In the past two years, as banks have abandoned the island, we’ve increased our commitment to Puerto Rico. PenFed has two locations in San Juan and in 2019, we opened another financial center in Hatillo. In 2020, we’re opening another in Ponce, for a total of four across the island.

PenFed Wealth Management also recently expanded our services through a partnership with CUNA Brokerage Services, Inc. to offer wealth management and investment services to our more than 200,000 members in Puerto Rico. This new relationship will provide members access to resources and advice that will have a positive impact on their families’ financial security.

Much of PenFed’s success is due to the credit union business model. Credit unions are not-for-profit cooperatives, owned and operated by their members – instead of owned by shareholders like a bank. When anyone makes a $5 deposit to become a PenFed member, he or she automatically becomes part owner of the credit union, and earnings are ultimately returned to these member-owners in the form of better rates and lower fees. That’s how we offer some of the best rates on savings and loans across Puerto Rico.

But the credit union difference is even greater than that. All credit unions live by the “people helping people” philosophy, and it’s a pledge we take very seriously. Excellent service is one of our top priorities. We care about our employees, our members and their families. We treat each of them as if they are members of our own family. And we care about helping them preserve and grow their wealth.

That’s one of the reasons we opened our ATMs across the island after Hurricane Maria, waiving all fees for everyone in Puerto Rico. We provided loan payment relief for members facing hardship, and PenFed employees in Puerto Rico received $150,000 in aid packages that included a stipend for disaster relief, 14 days of meals and a portable power generator. We also teamed up with the Gary Sinise Foundation to host a benefit concert that raised national awareness of Puerto Rico’s recovery needs and delivered an uplifting night of free entertainment for survivors on the island.

Still, we want to do more than aid in short-term recovery efforts. We decided that one of the best ways to show our dedication to the island’s recovery is to invest in Puerto Rico’s students. In 2018, we teamed up with leading education company EverFi to launch a financial education program for high school students, called “Tu Dinero, Tu Sueño” (“Your Money, Your Dreams”). The program showed phenomenal results in our first year. Students increased their scores on financial literacy assessment tests by an average of 93%.

This year we are doubling the number of schools with access to this life-changing program, and we’re sharing that financial education on our website at penfed.org. Financial knowledge, habits, values and confidence all contribute to a successful financial life. It’s our goal to help everyone build their financial literacy as well as their financial security.

A financial institution shouldn’t exist solely to make money off its customers. And it should do better than just helping people “get by.” It should educate, advise and serve the community. Credit unions are an attractive alternative to for-profit banking, because credit union values align with Puerto Rican values.

Stephen Simpson is vice president of affiliated businesses for PenFed Credit Union in McLean, Va.