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Woodstock Institute, a community development research organization working to increase lower-income membership in credit unions, has honored a large Illinois credit union, Credit Union 1, for a new enrollment initiative. The credit union is partnering with a community-based organization, the Logan Square Neighborhood Association (LSNA) to enroll new lower-income members from the largely Hispanic Logan Square neighborhood on Chicago’s northwest side. With technical assistance from the Woodstock Institute, the partnership was formed in 2004 to bring affordable financial products and services to several communities in Chicago that were not eligible to join one of the city’s two community development credit unions.
Credit Union 1 and Logan Square Neighborhood Association were a perfect fit. The credit union already had community chartered branch in the neighborhood and did not require a charter change to begin enrolling LSNA constituents. It also offers a low-cost share account, attractively priced credit cards and other loan products. LSNA had been seeking an innovative way to offer low-cost financial products and services to its constituents. They did not have the resources or staff time to commit to forming a new credit union, but needed a way to help its constituents access mainstream financial institutions, develop savings habits, and build credit. “The partnership shows how mainstream credit unions can build off of community assets, like a local community based organization, to increase their lower-income membership,” said Marva Williams, Woodstock Institute senior vice president. “Credit Union 1 shows how credit unions can truly become ‘people helping people.’” Past recipients of the Reinvestment Award include financial institutions such as the Northside Community Federal Credit Union, Shorebank, Neighborhood Housing Services, and numerous community reinvestment advocates.
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