Credit Unions and Community Partners Join Forces to Address Racial Economic Disparities

In a significant move to combat racial economic disparities, the CEI Institute has partnered with Filene Research Institute to launch a pioneering incubator project focused on Racial Economic Equity (REE). This 18-month initiative brought together nine credit unions and eleven community partners from across the United States, spanning from New York to Hawaii, to develop innovative solutions for underserved communities.

The REE Incubator utilized Filene's innovation framework alongside CEI Institute's expert coaching methodology to foster collaboration between credit unions and community stakeholders. This cohort-coaching model aimed to test the hypothesis that organizations addressing societal problems can achieve greater impact by working together.

McKaye Black, Filene's Head of Incubation, expressed enthusiasm about the project's outcomes, stating, "The significant impact each team has achieved in advancing racial equity in their communities, coupled with the thoughtful support and camaraderie they've extended to one another, truly reflect the core mission of credit unions – people empowering people."

The participating credit unions, each paired with a CEI Institute coach, developed a wide range of comprehensive solutions to enhance community well-being and empowerment. These programs included down payment assistance, grant initiatives, matching savings programs, financial empowerment services, educational resources, car loans, credit-building assistance, and financial goal-setting tools. Some projects targeted specific age groups, such as high school entrepreneurship programs and financial empowerment solutions for 18-25 year-olds.

Peter Holmes, CEO of CEI Institute, highlighted the potential for scaling these initiatives: "Through these select projects, credit unions across the nation can begin to engage with individuals they had previously not reached, resulting in significant impact on both individuals and communities, as well as fostering new opportunities for membership growth."

The culmination of the initial phase of the REE Incubator Program was marked by the presentation of capstone projects at Filene's Spark! 2024 conference on July 10, 2024. The event showcased the innovative spirit and commitment to social change within the credit union movement.

A highlight of the conference was the announcement of the Catalyst Award, recognizing exceptional contributions to economic equity. The top honor went to Kaua'i Federal Credit Union and their community partner, Hawaiian Community Assets, for their down payment assistance program and cesspool-to-septic conversion green lending initiative. This project aims to build Native Hawaiian homeownership on Kaua'i and is projected to reach $1 million in green lending in 2024.

Veridian Credit Union and their community partners secured second place with their "Achieve" collaboration, a financial empowerment program serving African Americans in Blackhawk County. The project has already shown impressive results, with 108 individuals accessing homeownership education, 161 receiving financial mentoring, and 30 becoming homeowners.

Christie Kimbell, Executive Vice President at Filene Research Institute, emphasized the importance of tackling challenges incrementally: "It's all about rolling up our sleeves and making a difference, credit union by credit union, community by community!"

This collaborative effort between CEI Institute and Filene Research Institute demonstrates the potential for credit unions to play a crucial role in addressing racial economic disparities. By fostering innovation and partnerships, these institutions are working towards creating more equitable financial opportunities for underserved communities across the United States.

For more information about the CEI Institute coaching methods and community entrepreneurship and innovation activities, visit www.CEIInstitute.org. Those interested specifically in the REE Incubator projects can find details at www.filene.org/REE.