CUNA Mutual Group & Credit Unions Launch New FinHealth Fund

CUNA Mutual Group in Madison, Wis., and four credit unions have contributed $2 million to launch the FinHealth Fund, a new industry-wide initiative to help credit unions scale their efforts to improve the financial wellness of members, employees and communities.

“The financial health of 166 million Americans is fragile and uncertain. Now is the time to act boldly, to come together as a cooperative movement and accelerate work that can improve the financial well-being of our employees, members and communities,” the credit union organizations said in a Monday prepared statement. “We are now calling on our credit union peers, system partners and providers to join us in raising $10 million over the next five years. We can transform lives by helping people improve their financial health. This is at the heart of why credit unions exist.”

CUNA Mutual Group contributed $1 million, and the four credit unions that each contributed $250,000 to start the new fund include the $5 billion BCU in Vernon Hills, Ill.; the $4.6 billion Coastal Federal Credit Union and the $3.2 billion Local Government Federal Credit Union, both based in Raleigh N.C., and the $7.4 billion Redwood Credit Union in Santa Rosa, Calif.

Over the next five years, organizers of the FinHealth Fund plan to create a national resource library that will include, for example, current work projects, case studies and toolkits to help credit unions embrace financial well-being for all as a strategic imperative, according to the prepared statement.

What’s more, the fund will provide educational opportunities to improve the skills for credit union employees to help people with their financial lives. FinHealth will also support industry-wide consumer research, data capture and analysis to prioritize efforts and quantify improvements to members’ financial health.

The National Credit Union Foundation in Madison, Wis., will function as the fiduciary for the FinHealth Fund. An advisory committee, which will include representatives from credit unions, leagues and other partners, will oversee the fund and approve distributions.

Organizations interested in supporting the FinHealth Fund can contribute by visiting CUNA’s website or contact Andre Parraway (aparraway@ncuf.coop), chief operating and finance officer at the National Credit Union Foundation, for ACH information.

Although it is not affiliated with the FinHealth Fund, a study released in October by the Financial Health Network in Chicago found that 131 million Americans are struggling with some, but not all, aspects of their financial lives, and an additional 35 million Americans are struggling with all, or nearly all, aspects of their finances. According to the study, 86 million Americans are financially healthy, meaning they are spending, saving, borrowing and planning in a way that is expected to help them thrive.

Government pandemic interventions, including stimulus payments, expanded unemployment benefits, mortgage and student loan forbearance, foreclosure and eviction moratoria, helped millions stay afloat monetarily and improved their financial situations.

However, the Financial Health Network study also reported many of these relief efforts have expired, which is expected to negatively affect the financial health of many Americans as well as the continued uncertainties from COVID-19 variants, the economy and disruptions in the labor markets, the study said.